FOXA Q2 Earnings Surpass Estimates, Revenues Increase Y/Y

Core Insights - Fox Corporation (FOXA) reported second-quarter fiscal 2026 adjusted earnings of 82 cents per share, exceeding the Zacks Consensus Estimate by 74.47%, although this represents a 14.6% decrease year over year [2][9] - Revenues increased by 2% year over year to $5.18 billion, surpassing the consensus mark by 2.47% [2][9] Revenue Breakdown - Distribution revenues, accounting for 38.6% of total revenues, rose 4% year over year to $2 billion, driven by a 5% growth in Cable Network Programming and a 1% increase in the Television segment [2][3] - Advertising revenues, which make up 47.4% of total revenues, increased by 1% year over year to $2.46 billion, supported by higher sports and news pricing, digital growth from the Tubi AVOD service, and additional MLB postseason games, but partially offset by lower political advertising revenues and ratings [3][4] - Content and other revenues, representing 14% of total revenues, remained stable year over year at $725 million [3] Operating Performance - Operating expenses increased by 3.2% year over year to $3.9 billion, with operating expenses as a percentage of revenues rising by 90 basis points to 75.2% [6] - Selling, general & administrative (SG&A) expenses rose 13.3% year over year to $595 million, expanding as a percentage of revenues by 120 basis points to 11.5% [6] - Total adjusted EBITDA decreased by 11.4% year over year to $692 million, with the adjusted EBITDA margin contracting by 190 basis points to 13.4% [6][9] Segment Performance - Cable Network Programming EBITDA increased by 5% year over year to $687 million, while Television reported an adjusted EBITDA of $143 million, down 30% from the previous year [7] Balance Sheet - As of December 31, 2025, Fox had $2.02 billion in cash and cash equivalents, down from $4.37 billion as of September 30, 2025 [10] - Total borrowings remained unchanged at $6.6 billion as of December 31, 2025 [10]