Fox Corporation — Q1 Fiscal 2027 Earnings Summary

Financial Performance:

• Total quarterly revenue reached $4.57 billion, a 22% increase ($833 million) compared to $3.738 billion in the prior year quarter.
• Net income was $957 million, up from $609 million in the prior year quarter; net income attributable to Fox Corporation stockholders was $943 million ($2.20 per share) versus $599 million ($1.32 per share) previously.
• Adjusted net income attributable to stockholders was $1.09 billion ($2.54 per share), compared to $686 million ($1.51 per share) in the prior year quarter.
• Quarterly Adjusted EBITDA was $1.64 billion, a 54% increase ($576 million) from $1.065 billion in the prior year quarter.
• Distribution revenue increased 9% to $2.084 billion; Advertising revenue increased 47% to $2.081 billion; Content and other revenue was $406 million, down from $411 million.
• Operating expenses were $2.363 billion, up from $2.121 billion; Selling, general and administrative expenses were $567 million, up from $552 million.
• Depreciation and amortization totaled $118 million, compared to $98 million in the prior year quarter.
• Cash and cash equivalents were $4.536 billion as of September 30, 2026, compared to $4.205 billion as of June 30, 2026.
• Net cash provided by operating activities was $616 million, compared to a net cash used of $130 million in the prior year quarter.
• Net cash used in investing activities was $139 million, compared to $255 million in the prior year quarter.
• Net cash used in financing activities was $146 million, compared to $598 million in the prior year quarter.
• Borrowings were $6.607 billion as of September 30, 2026, compared to $6.606 billion as of June 30, 2026.

Guidance and Future Outlook:

• Management expressed confidence in delivering value for shareholders in a thoughtful and disciplined manner, citing record results and strong momentum across the business.
• The press release references the "Roku transaction" as a factor subject to uncertainty and changes in circumstances affecting future results.

Business Segments and Product Lines:

• Cable Network Programming: Revenue increased 8% to $1.803 billion; Segment EBITDA increased 7% to $859 million. Distribution revenue grew 10% to $1.2 billion driven by contractual price increases and subscriber growth; Advertising revenue grew 8% to $373 million driven by sports advertising including the World Cup.
• Television: Revenue increased 32% to $2.713 billion; Segment EBITDA increased 134% to $934 million. Advertising revenue surged 60% to $1.708 billion driven by the World Cup, political advertising, and digital growth led by Tubi AVOD; Distribution revenue grew 4% to $850 million driven by higher rates and subscriber growth.
• Corporate and Other: Revenue was $246 million, up from $89 million; Adjusted EBITDA was a loss of $152 million, compared to a loss of $134 million.
• Eliminations: Revenue eliminations were $191 million, compared to $63 million in the prior year quarter.

Market and Competitive Landscape:

• Revenue growth was driven by the current year broadcast of the FIFA Men's World Cup, higher political advertising revenue, and continued digital growth led by the Tubi AVOD service.
• College football and NFL seasons commenced during the quarter, contributing to strong results.
• An active election cycle at national and local levels supported advertising revenue.

Risks and Challenges:

• Higher expenses were incurred due to increased sports programming rights amortization and production costs, specifically related to the World Cup, and higher digital content costs.
• Forward-looking statements are subject to risks including the impact of the Roku transaction, economic, business, competitive, technological, strategic, and regulatory factors.

Management Commentary and Tone:

• Executive Chair and CEO Lachlan Murdoch described the start to fiscal 2027 as "outstanding," highlighting record revenue and Adjusted EBITDA.
• Management attributed the results to a focused strategy, the strength of content and brands, and robust growth in advertising and distribution revenue.

Other Key Points:

• The company reported dividends paid and distributions of $131 million in the quarter, compared to $138 million in the prior year quarter.
• There were no share repurchases in the current quarter, compared to $250 million in the prior year quarter.
• No purchase of noncontrolling interests occurred in the current quarter, compared to $208 million in the prior year quarter.
• Adjusted EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses.
• Adjusted Net Income excludes net income effects of Restructuring, impairment and other corporate matters, adjustments to Equity earnings (losses) of affiliates, Non-operating other, net, Tax provision and Noncontrolling interest adjustments.