Fox Q3 Earnings Beat Despite Super Bowl Gap

Fox Corporation’s Q3 earnings on May 11, 2026, showed a year-over-year revenue decline but beat Wall Street on adjusted earnings, as distribution pricing and streaming momentum helped offset an advertising shortfall while the company prepared platforms for the 2026 World Cup.

Beats Estimates Despite Advertising Revenue Decline

Fox reported total revenue of $3.99 billion for the quarter ended March 31, 2026, down 9.0% from $4.37 billion a year earlier. The result exceeded whisper and anticipated revenue estimates of roughly $3.82 billion and $3.78 billion.

Adjusted earnings per share rose to $1.32, and adjusted EBITDA increased 11.0% year-over-year to $954 million. Adjusted net income grew to $570 million, while GAAP net income fell to $175 million.

Advertising revenue declined 24.0% to $1.56 billion, primarily because Fox did not broadcast Super Bowl LIX in the quarter. The prior-year Super Bowl generated more than $800 million in gross ad revenue. This shortfall was partially offset by an additional NFL Wild Card game and continued digital ad growth led by the Tubi streaming service.

Distribution revenue increased 3.0% to $2.11 billion, representing 52.8% of total revenue, driven by contractual cable pricing gains. The Cable Network Programming segment posted revenue of $1.74 billion, up 6.0% year-over-year, with distribution revenue rising about 5.0% (approximately $64 million) and advertising revenue up roughly 5.0% (about $18 million). Adjusted EBITDA for the segment was $884 million, while subscriber declines remained under 6.5% across third-party distributors before any contribution from FOX One.

The Television segment contracted 19.0% to $2.20 billion, with advertising revenue down 30.0% to $1.17 billion and distribution revenue declining about 1.0% amid net subscriber losses. Content and other revenue totaled $173 million. Adjusted EBITDA improved to $191 million from $60 million a year earlier, as lower sports-rights amortization and production costs in the absence of Super Bowl LIX reduced programming expenses.

Tubi continued its slightly better than break-even performance for a third consecutive quarter. Management said companywide digital investment is pacing below the prior year, with full-year digital spending expected to remain "comfortably inside" last year's roughly $290 million as the streaming business moves toward profitability.

On capital allocation, Fox has repurchased $8.5 billion of stock to date and retains $3.5 billion in remaining buyback authorization.

FOX One Launch and 2026 World Cup Preparation

Fox News Media announced plans to launch FOX One, a new streaming service, in fall 2026. The company is preparing infrastructure to support its 2026 FIFA World Cup coverage.

The World Cup runs from June 11 to July 19, 2026. FOX One’s coverage will include full-match broadcasts, real-time statistics, alternate-angle feeds, and instant replays. Fox has partnered with Delta Sync to offer in-flight streaming on domestic flights, with SkyMiles members receiving a 24-hour FOX One trial starting in May 2026. Ancillary promotions include behind-the-scenes access, talent meet-and-greets, and a FOX Sports Studio tour available through SkyMiles bidding.