EX-99.1 2 foxearningsreleaseq326.htm EX-99.1 Document Exhibit 99.1 EARNINGS RELEASE FOR THE QUARTER ENDED MARCH 31, 2026 FOX REPORTS THIRD QUARTER FISCAL 2026 REVENUE OF $3.99 BILLION, NET INCOME OF $175 MILLION, AND ADJUSTED EBITDA OF $954 MILLION NEW YORK, NY, May 11, 2026 – Fox Corporation (Nasdaq: FOXA, FOX; “FOX” or the “Company”) today reported financial results for the three months ended March 31, 2026. The Company reported total quarterly revenue of $3.99 billion as compared to the $4.37 billion reported in the prior year quarter. Distribution revenue increased 3%, driven by 5% growth at the Cable Network Programming segment. Advertising revenue was $1.56 billion as compared to the $2.04 billion reported in the prior year quarter, primarily due to the absence of the prior year broadcast of Super Bowl LIX, partially offset by the impact of an additional NFL Wild Card game and continued digital growth led by the Tubi AVOD service. Content and other revenue increased 12% primarily due to higher sports sublicensing revenue. The Company reported quarterly net income of $175 million as compared to the $354 million reported in the prior year quarter. Net income attributable to Fox Corporation stockholders was $166 million ($0.38 per share) as compared to the $346 million ($0.75 per share) reported in the prior year quarter. Adjusted net income attributable to Fox Corporation stockholders 1 was $570 million ($1.32 per share) as compared to the $507 million ($1.10 per share) reported in the prior year quarter. Quarterly Adjusted EBITDA 2 was $954 million, an increase of $98 million or 11% from the amount reported in the prior year quarter, as the revenue decrease noted above was more than offset by lower expenses. The decrease in expenses was primarily due to lower sports programming rights amortization and production costs, led by the absence of the prior year broadcast of Super Bowl LIX, partially offset by the impact of an additional NFL Wild Card game and costs associated with the launch of Fox One. Commenting on the results, Executive Chair and Chief Executive Officer Lachlan Murdoch said: "Our fiscal third quarter results once again demonstrate continued strength and momentum across our business. This strong performance, led by robust core advertising trends, underscores FOX’s leadership in live programming, bolstered by continued strength at our leading free streaming service, Tubi. Against this backdrop, we are proud to be bringing the world’s biggest sporting event to American homes with the FIFA Men's World Cup hosted here in North America across June and July. Meanwhile we remain steadfast in our commitment to delivering long-term shareholder value supported by our strong balance sheet.” 1 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. See Note 1 for a description of adjusted net income attributable to Fox Corporation stockholders and adjusted earnings per share attributable to Fox Corporation stockholders, which are considered non-GAAP financial measures, and a reconciliation of reported net income attributable to Fox Corporation stockholders and earnings per share attributable to Fox Corporation stockholders to adjusted net income attributable to Fox Corporation stockholders and adjusted earnings per share attributable to Fox Corporation stockholders. 2 Adjusted EBITDA is considered a non-GAAP financial measure. See Note 2 for a description of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA. Page 1 EARNINGS RELEASE FOR THE QUARTER ENDED MARCH 31, 2026 REVIEW OF OPERATING RESULTS Three Months Ended March 31, Nine Months Ended March 31, 2026 2025 2026 2025 $ Millions Revenues by Component: Distribution 3 $ 2,107  $ 2,039  $ 6,024  $ 5,840  Advertising 1,556  2,036  5,423  5,787  Content and other 331  296  1,467  1,386  Total revenues $ 3,994   $ 4,371   $ 12,914   $ 13,013   Segment Revenues: Cable Network Programming $ 1,741  $ 1,636  $ 5,678  $ 5,398  Television 2,197  2,704  7,184  7,618  Corporate and Other 152  58  365  181  Eliminations (96) (27) (313) (184) Total revenues $ 3,994   $ 4,371   $ 12,914   $ 13,013   Adjusted EBITDA: Cable Network Programming $ 884  $ 878  $ 2,371  $ 2,283  Television 191  60  733  637  Corporate and Other (121) (82) (393) (235) Adjusted EBITDA 4 $ 954   $ 856   $ 2,711   $ 2,685   Depreciation and amortization: Cable Network Programming $ 25  $ 24  $ 78  $ 69  Television 32  28  92  87  Corporate and Other 44  43  129  127  Total depreciation and amortization $ 101   $ 95   $ 299   $ 283   3 The Company generates distribution revenue from agreements with MVPDs for cable network programming and retransmission fees for the broadcast of the Company’s owned and operated television stations and from subscription fees for the Company’s direct-to-consumer streaming services. In addition, the Company generates distribution revenue from agreements with independently owned television stations that are affiliated with the FOX Network. Prior period amounts have been reclassified to conform to the current presentation. 4 Adjusted EBITDA is considered a non-GAAP financial measure. See Note 2 for a description of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA. Page 2 EARNINGS RELEASE FOR THE QUARTER ENDED MARCH 31, 2026 CABLE NETWORK PROGRAMMING Three Months Ended March 31, Nine Months Ended March 31, 2026 2025 2026 2025 $ Millions Revenues Distribution $ 1,233  $ 1,169  $ 3,486  $ 3,340  Advertising 390  372  1,226  1,153  Content and other 118  95  966  905  Total revenues 1,741   1,636   5,678   5,398   Operating expenses (702) (601) (2,831) (2,657) Selling, general and administrative (155) (158) (476) (467) Amortization of cable distribution investments —  1  —  9  Segment EBITDA $ 884   $ 878   $ 2,371   $ 2,283   Cable Network Programming reported quarterly segment revenue of $1.74 billion, an increase of $105 million or 6% from the amount reported in the prior year quarter. Distribution revenue increased $64 million or 5% as contractual price increases were partially offset by the impact of net subscriber declines. Advertising revenue increased $18 million or 5%, primarily due to higher news pricing partially offset by lower ratings, and the current year broadcast of the World Baseball Classic . Content and other revenue increased $23 million or 24%, primarily due to higher sports sublicensing revenue. Cable Network Programming reported quarterly segment EBITDA of $884 million, an increase of $6 million or 1% from the amount reported in the prior year quarter, as the revenue increase noted above was partially offset by higher expenses. The increase in expenses was driven by higher sports programming rights amortization. Page 3 EARNINGS RELEASE FOR THE QUARTER ENDED MARCH 31, 2026 TELEVISION Three Months Ended March 31, Nine Months Ended March 31, 2026 2025 2026 2025 $ Millions Revenues Advertising $ 1,166  $ 1,664  $ 4,197  $ 4,634  Distribution 858  870  2,510  2,500  Content and other 173  170  477  484  Total revenues 2,197   2,704   7,184   7,618   Operating expenses (1,736) (2,359) (5,642) (6,191) Selling, general and administrative (270) (285) (809) (790) Segment EBITDA $ 191   $ 60   $ 733   $ 637   Television reported quarterly segment revenue of $2.20 billion as compared to the $2.70 billion reported in the prior year quarter. Advertising revenue was $1.17 billion as compared to the $1.66 billion reported in the prior year quarter, primarily due to the absence of the prior year broadcast of Super Bowl LIX, partially offset by the broadcast of an additional NFL Wild Card game and continued digital growth led by the Tubi AVOD service. Distribution revenue was $858 million as compared to the $870 million reported in the prior year quarter, driven by the impact of net subscriber declines. Content and other revenue increased $3 million or 2%, primarily due to higher entertainment content revenue. Television reported quarterly segment EBITDA of $191 million, an increase of $131 million from the amount reported in the prior year quarter, as the revenue decrease noted above was more than offset by lower expenses. The decrease in expenses was driven by lower sports programming rights amortization and production costs, led by the absence of the prior year broadcast of Super Bowl LIX, partially offset by the broadcast of an additional NFL Wild Card game. Page 4 EARNINGS RELEASE FOR THE QUARTER ENDED MARCH 31, 2026 SHARE REPURCHASE PROGRAM As of March 31, 2026, the Company has cumulatively repurchased approximately $6.7 billion of its Class A common stock and approximately $1.8 billion of its Class B common stock, with a remaining authorization of $3.5 billion. During the quarter, the Company repurchased approximately $50 million of its Class A common stock and $50 million of its Class B Common stock. CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements in this press release due to changes in economic, business, competitive, technological, strategic and/or regulatory factors and other factors affecting the operation of the Company’s businesses. More detailed information about these factors is contained in the documents the Company has filed with or furnished to the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Statements in this press release speak only as of the date they were made, and the Company undertakes no duty to update or release any revisions to any forward-looking statement made in this press release or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or to conform such statements to actual results or changes in the Company’s expectations, except as required by law. To access a copy of this press release through the Internet, access Fox Corporation’s corporate website located at http://www.foxcorporation.com. CONTACTS Gabrielle Brown, Investor Relations Brian Nick, Press Inquiries 212-852-7720 310-369-3545 Charlie Costanzo, Investor Relations Lauren Townsend, Press Inquiries 212-852-7908 310-369-2729 Page 5 EARNINGS RELEASE FOR THE QUARTER ENDED MARCH 31, 2026 CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended March 31, Nine Months Ended March 31, 2026 2025 2026 2025 $ Millions, except per share amounts Revenues $ 3,994   $ 4,371   $ 12,914   $ 13,013   Operating expenses (2,494) (2,965) (8,473) (8,759) Selling, general and administrative (546) (551) (1,730) (1,578) Depreciation and amortization (101) (95) (299) (283) Restructuring, impairment and other corporate matters (32) (55) (38) (251) Equity losses of affiliates (20) (18) (18) (11) Interest expense, net (66) (55) (214) (185) Non-operating other, net (499) (158) (785) 156  Income before income tax expense 236   474   1,357   2,102   Income tax expense (61) (120) (326) (528) Net income 175   354   1,031   1,574   Less: Net income attributable to noncontrolling interests (9) (8) (37) (28) Net income attributable to Fox Corporation stockholders $ 166   $ 346   $ 994   $ 1,546   Weighted average shares: 432  461  443  462  Net income attributable to Fox Corporation stockholders per share: $ 0.38   $ 0.75   $ 2.24   $ 3.35   Page 6 EARNINGS RELEASE FOR THE QUARTER ENDED MARCH 31, 2026 CONSOLIDATED BALANCE SHEETS March 31, 2026 June 30, 2025 $ Millions Assets: Current assets: Cash and cash equivalents $ 3,601  $ 5,351  Receivables, net 2,948  2,472  Inventories, net 652  432  Other 337  174  Total current assets 7,538  8,429  Non-current assets: Property and equipment, net 1,782  1,705  Intangible assets, net 2,943  2,969  Goodwill 3,647  3,639  Deferred tax assets 2,604  2,721  Other non-current assets 3,269  3,732  Total assets $ 21,783   $ 23,195   Liabilities and Equity: Current liabilities: Accounts payable, accrued expenses and other current liabilities $ 2,603  $ 2,897  Total current liabilities 2,603  2,897  Non-current liabilities: Borrowings 6,605  6,602  Other liabilities 1,415  1,341  Redeemable noncontrolling interests 84  288  Commitments and contingencies Equity: Class A common stock, $0.01 par value 2  2  Class B common stock, $0.01 par value 2  2  Additional paid-in capital 7,252  7,603  Retained earnings 3,837  4,479  Accumulated other comprehensive loss (124) (124) Total Fox Corporation stockholders’ equity 10,969  11,962  Noncontrolling interests 107  105  Total equity 11,076  12,067  Total liabilities and equity $ 21,783   $ 23,195   Page 7 EARNINGS RELEASE FOR THE QUARTER ENDED MARCH 31, 2026 CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended March 31, 2026 2025 $ Millions OPERATING ACTIVITIES: Net income $ 1,031  $ 1,574  Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 299  283  Restructuring, impairment and other corporate matters 38  168  Equity-based compensation 90  97  Equity losses of affiliates 18  11  Cash distributions received from affiliates —  13  Non-operating other, net 785  (156) Deferred income taxes 116  165  Change in operating assets and liabilities, net of acquisitions and dispositions Receivables and other assets (546) (897) Inventories net of programming payable (387) 691  Accounts payable and accrued expenses (226) (26) Other changes, net (115) (112) Net cash provided by operating activities 1,103   1,811   INVESTING ACTIVITIES: Property and equipment (361) (212) Purchase of investments (168) (79) Acquisitions, net of cash acquired (8) (91) Other investing activities, net (6) (25) Net cash used in investing activities (543) (407) FINANCING ACTIVITIES: Repurchase of shares (1,900) (750) Dividends paid and distributions (275) (267) Purchase of noncontrolling interest (208) —  Other financing activities, net 73  109  Net cash used in financing activities (2,310) (908) Net (decrease) increase in cash and cash equivalents (1,750) 496  Cash and cash equivalents, beginning of year 5,351  4,319  Cash and cash equivalents, end of period $ 3,601   $ 4,815   Page 8 EARNINGS RELEASE FOR THE QUARTER ENDED MARCH 31, 2026 NOTE 1 – ADJUSTED NET INCOME AND ADJUSTED EPS The Company uses net income attributable to Fox Corporation stockholders and earnings per share (“EPS”) attributable to Fox Corporation stockholders excluding 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 (“Adjusted Net Income” and “Adjusted EPS” respectively) to evaluate the performance of the Company’s operations exclusive of certain items that impact the comparability of results from period to period. Adjusted Net Income and Adjusted EPS may not be comparable to similarly titled measures reported by other companies. Adjusted Net Income and Adjusted EPS are not measures of performance under GAAP and should be considered in addition to, and not as substitutes for, net income attributable to Fox Corporation stockholders and EPS as reported in accordance with GAAP. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to management, investors and equity analysts to assist in their analysis of the Company’s performance relative to prior periods and the Company’s competitors. The following table reconciles net income attributable to Fox Corporation stockholders and EPS attributable to Fox Corporation stockholders to Adjusted Net Income and Adjusted EPS for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, 2026 March 31, 2025 Income EPS Income EPS $ Millions, except per share data Net income attributable to Fox Corporation stockholders $ 166   $ 0.38   $ 346   $ 0.75   Restructuring, impairment and other corporate matters 32  0.07  55  0.12  Non-operating other, net 499  1.16  158  0.34  Tax provision (127) (0.29) (52) (0.11) As adjusted $ 570   $ 1.32   $ 507   $ 1.10   Page 9 EARNINGS RELEASE FOR THE QUARTER ENDED MARCH 31, 2026 NOTE 2 – ADJUSTED EBITDA Adjusted EBITDA is defined as Revenues less Operating expenses and Selling, general and administrative expenses. Adjusted EBITDA does not include: Depreciation and amortization, Restructuring, impairment and other corporate matters, Equity earnings (losses) of affiliates, Interest expense, net, Non-operating other, net and Income tax expense. Effective July 1, 2025, the Company no longer removes the impact of amortization of cable distribution investments when calculating Adjusted EBITDA. Prior periods were not restated as the impact of the change is immaterial to the calculation. Management believes that information about Adjusted EBITDA assists all users of the Company’s Unaudited Consolidated Financial Statements by allowing them to evaluate changes in the operating results of the Company’s portfolio of businesses separate from non-operational factors that affect Net income, thus providing insight into both operations and the other factors that affect reported results. Adjusted EBITDA provides management, investors and equity analysts a measure to analyze the operating performance of the Company’s business and its enterprise value against historical data and competitors’ data, although historical results, including Adjusted EBITDA, may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). Adjusted EBITDA is considered a non-GAAP financial measure and should be considered in addition to, not as a substitute for, net income, cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment charges, which are significant components in assessing the Company’s financial performance. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. The following table reconciles net income to Adjusted EBITDA for the three and nine months ended March 31, 2026 and 2025: Three Months Ended March 31, Nine Months Ended March 31, 2026 2025 2026 2025 $ Millions Net income $ 175   $ 354   $ 1,031   $ 1,574   Add: Amortization of cable distribution investments —  1  —  9  Depreciation and amortization 101  95  299  283  Restructuring, impairment and other corporate matters 32  55  38  251  Equity losses of affiliates 20  18  18  11  Interest expense, net 66  55  214  185  Non-operating other, net 499  158  785  (156) Income tax expense 61  120  326  528  Adjusted EBITDA $ 954   $ 856   $ 2,711   $ 2,685   Page 10 Item 2.02. Results of Operations and Financial Condition. On May 11, 2026, Fox Corporation (the “Company”) released its financial results for the quarter ended March 31, 2026. A copy of the Company’s press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference. The information in this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or