Core Insights - Fox Corporation's Tubi has achieved a significant milestone by becoming the first major free streaming platform to reach profitability in Q3 2025, completing its annual profit target [1] - Tubi's success highlights the rapid rise of ad-supported video on demand (AVOD) platforms, challenging the dominance of subscription-based services like Netflix and Disney+ [1] Financial Performance - Tubi's annual revenue grew by over 30%, with Q4 revenue increasing by 8% compared to Q3 [2] - The growth was driven by an 18% increase in total viewing hours and a substantial rise in advertising revenue, contributing to a 26% increase in Fox's overall TV ad revenue for 2025 [2] - Tubi maintained over 100 million monthly active users (MAU) by the end of 2025, with an average streaming time of 1 billion hours per month [2] Market Position - Tubi captured 6.2% of total viewing hours in the U.S. ad-supported streaming market in Q4 2025, surpassing platforms like Netflix's ad tier [3] - In November 2025, Tubi surpassed major subscription platforms like Peacock and HBO Max with a 2.1% share of total streaming hours [4] User Demographics and Content Strategy - Tubi's user base is predominantly composed of millennials and Gen Z, with over 70% of new users from Gen Z [7] - The platform's content strategy includes a mix of original productions and classic shows, appealing to younger audiences and enhancing user retention [8] - Tubi's library consists of over 300,000 titles, including a significant collection of horror films, catering to diverse viewer preferences [8] Competitive Advantages - Tubi's growth is supported by a three-pronged strategy: targeting Gen Z, leveraging Fox's ecosystem, and employing a lightweight content strategy [5][10][12] - The platform's partnership with Fox allows it to access premium sports content, significantly boosting user engagement and attracting male viewers [10][12] - Tubi's low-cost content acquisition model enables it to maximize operational efficiency while maintaining a rich content library [12] Industry Trends - The AVOD market is projected to grow from $174 billion in 2022 to approximately $260 billion by 2025, indicating a shift in consumer preferences towards free streaming options [14] - Economic pressures have led consumers to prioritize cost-effective streaming solutions, with many willing to watch ads for free content [15] - The competitive landscape is evolving, with traditional media companies increasingly investing in free streaming services to capture diverse market segments [23][24] Future Outlook - The U.S. streaming market is expected to transition into a dual-track system, with free and paid platforms coexisting and catering to different audience needs [23] - Tubi aims to enhance its advertising capabilities while expanding its user base, while subscription services like Netflix will focus on high-end content and premium pricing strategies [23][24]

Core Viewpoint - The article compares Fox Corporation (FOX) and Fox (FOXA) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - Fox Corporation has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Fox has a Zacks Rank of 3 (Hold) [3] - The improving earnings outlook for FOX suggests it is a more favorable option for investors [7] Group 2: Valuation Metrics - FOX has a forward P/E ratio of 12.51, compared to FOXA's forward P/E of 14.18 [5] - FOX's PEG ratio is 7.92, while FOXA's PEG ratio is 8.52, indicating FOX may be undervalued relative to its expected EPS growth [5] - FOX has a P/B ratio of 2.35, whereas FOXA has a P/B of 2.61, further supporting FOX's valuation attractiveness [6] - These metrics contribute to FOX's Value grade of B and FOXA's Value grade of C [6]

Market Overview - Stock futures are mixed, showing signs of stabilization after a downturn in software and AI-related technology stocks, leading some investors to view the selloff as a buying opportunity [1] - Defensive sectors and commodity-linked assets are gaining interest, particularly as gold prices have risen above $5,000 per ounce, indicating strong demand for safe havens amid market uncertainty [1] Pre-Market Trading - In pre-market trading, S&P 500 futures rose by 0.11%, Nasdaq futures fell by 0.34%, and Dow futures increased by 0.22% [2] Company Movements - Silicon Labs (SLAB) shares surged by 49% following a definitive agreement for acquisition by Texas Instruments (TXN) at $231 per share in an all-cash transaction [3] - Texas Instruments (TXN) shares declined by 3% after announcing the acquisition of Silicon Labs [6] - Other notable stock movements include Eli Lilly (LLY) up 9%, Johnson Controls (JCI) up 5%, and AMD (AMD) down 10% [6]

Core Insights - Fox Corporation is a significant player in the media industry with a diverse portfolio including cable, broadcast television, and streaming services [1] - The company reported a total revenue of $5.18 billion for the second quarter, reflecting a 2% year-over-year increase [2][6] - Tubi, Fox's streaming service, achieved a record quarterly revenue growth of 19% and reached EBITDA profitability for the second consecutive quarter [3][6] - Goldman Sachs set a price target of $80 for FOXA, indicating an 18.12% potential upside from its current trading price of $67.73 [2][6] - Fox has been actively returning capital to shareholders, repurchasing $1.8 billion worth of stock in the fiscal year to date, totaling $8.4 billion since 2019 [4] Financial Performance - The company experienced a 1% rise in companywide ad revenue and a notable 7% increase in cable advertising [2] - Despite fluctuations in stock price, FOXA's market capitalization is approximately $30.58 billion, with a trading volume of 6.17 million shares [5] Stock Performance - Currently, FOXA is priced at $67.73, having decreased by 3.61% or $2.54 [5] - Over the past year, the stock has seen a high of $76.39 and a low of $46.42 [5]

Core Insights - Fox Corporation is a significant player in the media industry, with a diverse portfolio that includes news, sports, and entertainment content, and operates in the ad-supported streaming market through Tubi [1] Financial Performance - Fox Corporation reported quarterly earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.47 per share by 74.47%, although this represents a decrease from $0.96 per share in the same quarter last year [3] - The company achieved revenues of $5.18 billion for the quarter ending December 2025, surpassing the Zacks Consensus Estimate by 2.47% and showing an increase from $5.08 billion reported in the same period the previous year [4] - Advertising revenues increased by 1%, driven by higher sports and news pricing, digital growth from Tubi, and additional Major League Baseball postseason games, despite a decline in political advertising revenues and lower ratings [5] Analyst Ratings - Goldman Sachs maintained a "Buy" rating for Fox Corporation, lowering the price target from $87 to $80, reflecting confidence in the company's long-term potential despite a stock price decrease to $67.73 [2][6]

Core Insights - Fox Corporation exceeded earnings forecasts in Q2 of the fiscal year, driven by increased ad revenue from news networks and sports programs [1] - Total revenue reached $5.18 billion, marking a 2% year-over-year increase, with companywide ad revenue rising 1% and cable advertising increasing by 7% [1] Revenue and Advertising Performance - Tubi, Fox's ad-supported streaming service, achieved record quarterly revenue growth of 19% and maintained EBITDA profitability for the second consecutive quarter [2] - Fox News added approximately 200 new advertisers in the first half of the year, building on 350 new advertisers from the previous year, indicating strong demand for its content [5] - The advertising market for Fox News has been robust, with scatter pricing for the channel increasing by 46% to 47% [9] Viewership and Ratings - Fox News was the most-watched cable network in total day, producing the top 11 cable news programs [7] - Nielsen data shows Fox News outperforming competitors like MSNBC and CNN, and in some markets, it attracted larger audiences than major broadcast networks [8] - Fox Television's ratings were bolstered by live sports, with significant viewership for marquee events, including over 27 million viewers for a Game 7 of the World Series [10] Financial Metrics and Challenges - Despite revenue growth, net income fell to $229 million from $373 million year-over-year, and adjusted EBITDA decreased to $692 million from $781 million [15] - The decline in profit margins was attributed to higher amortization of sports programming rights, increased production costs, and elevated digital and marketing expenditures [15] - Following the earnings release, shares of Fox Corp dropped nearly 4%, although the stock has risen nearly 25% over the past year [16] Capital Management - Fox Corp repurchased $1.8 billion of stock in the fiscal year to date, bringing cumulative repurchases since 2019 to $8.4 billion, which is about 35% of shares outstanding [4]

Key Takeaways FOXA posted fiscal Q2 adjusted EPS of 82 cents, beating estimates, while revenues climbed 2% Y/Y to $5.18B.FOXA's distribution revenues rose 4% Y/Y, driven mainly by growth in Cable Network Programming fees.FOXA saw adjusted EBITDA fall 11.4% as expenses rose and the Television segment's profitability weakened.Fox Corporation (FOXA) reported second-quarter fiscal 2026 adjusted earnings of 82 cents per share, which beat the Zacks Consensus Estimate by 74.47%. The figure decreased 14.6% year ove ...

Revenue Performance - For the three months ended December 31, 2025, total revenues increased by $104 million or 2% to $5,182 million compared to the same period in 2024, driven by higher distribution and advertising revenues [88]. - For the six months ended December 31, 2025, total revenues increased by $278 million or 3% to $8,920 million, driven by higher distribution, advertising, and content revenues [92]. - Total revenues for the three months ended December 31, 2025, increased by $104 million or 2% to $5,182 million compared to $5,078 million in the same period of 2024 [100]. - Cable Network Programming segment revenues rose by $110 million or 5% for the three months ended December 31, 2025, driven by higher distribution, advertising, and content revenues [102]. - Cable Network Programming segment revenues increased by $175 million or 5% for the six months ended December 31, 2025, due to higher distribution, advertising, and content revenues [104]. - Television segment revenues decreased by $24 million or 1% for the three months ended December 31, 2025, primarily due to lower content revenues, partially offset by higher advertising and distribution revenues [107]. - Television segment revenues increased by $73 million or 1% for the six months ended December 31, 2025, driven by higher advertising and distribution revenues [109]. Operating Expenses - Operating expenses for the three months ended December 31, 2025, increased by $119 million or 3% to $3,895 million, mainly due to higher sports programming rights amortization and production costs [90]. - Selling, general and administrative expenses rose by $70 million or 13% to $595 million, primarily due to marketing costs associated with the launch of FOX One and higher employee costs [91]. - Operating expenses for the Cable Network Programming segment increased by $73 million or 4% for the six months ended December 31, 2025, primarily due to higher sports programming rights costs [105]. - Television segment EBITDA decreased by $62 million or 30% for the three months ended December 31, 2025, attributed to revenue declines and increased operating expenses [108]. Net Income and EBITDA - Net income for the three months ended December 31, 2025, decreased by $141 million or 36% to $247 million, attributed to changes in the fair value of investments in equity securities [97]. - Adjusted EBITDA for the three months ended December 31, 2025, was $692 million, compared to $781 million for the same period in 2024, representing a decrease of 11.4% [119]. - Corporate and Other EBITDA decreased by $57 million or 70% for the three months ended December 31, 2025, and by $119 million or 78% for the six months ended December 31, 2025, primarily due to costs associated with the launch of FOX One [114]. Cash Flow and Financing - Net cash used in operating activities increased to $799 million for the six months ended December 31, 2025, compared to $204 million in 2024, primarily due to lower political advertising receipts and higher sports programming payments [124]. - Net cash used in investing activities rose to $393 million for the six months ended December 31, 2025, compared to $240 million in 2024, driven by increased investments and capital expenditures [125]. - Net cash used in financing activities surged to $2.142 billion for the six months ended December 31, 2025, compared to $553 million in 2024, largely due to stock repurchase activities [126]. - The Company has approximately $2.0 billion in cash and cash equivalents as of December 31, 2025, along with an unused $1.0 billion revolving credit facility [120]. Tax and Compliance - The effective tax rate for the three and six months ended December 31, 2025, was 23% and 24%, respectively, higher than the statutory rate of 21% due to state taxes [96]. - The Company is in compliance with all covenants under its revolving credit facility and does not anticipate any noncompliance [121]. Dividends and Acquisitions - The Company declared a semi-annual dividend of $0.28 per share, payable on March 25, 2026, with a record date of March 4, 2026 [128]. - The Company is evaluating potential acquisitions and dispositions of certain businesses and assets, which may involve cash or the assumption of additional indebtedness [123].

Core Insights - Fox Corporation reported a 2% year-over-year revenue growth for Q2 of fiscal year 2026, reaching $5.18 billion, surpassing analyst expectations of $5.06 billion [1] - Adjusted earnings per share were $0.82, exceeding analyst forecasts of $0.51, driven by strong advertising demand in news and sports networks, as well as growth in the ad-supported streaming service Tubi [1]

Group 1 - The company recorded higher revenue in the fiscal second quarter [1] - Growth in the cable segment contributed positively to revenue [1] - Higher advertising revenue offset a slight decline in the television segment [1]