Company Overview - Fox Corporation (FOXA) has a market cap of $27 billion and is a leading U.S.-based media company delivering news, sports, and entertainment through brands like FOX News, FOX Sports, the FOX Network, and Tubi [1] - The company operates across four segments: Cable Network Programming, Television, Credible, and FOX Studio Lot, reaching audiences through broadcast, cable, digital platforms, and production services [1][2] Stock Performance - FOXA shares have declined marginally from a 52-week high of $62.69, but the stock has increased nearly 13% over the past three months, underperforming the Nasdaq Composite's 17.2% return [3] - Year-to-date, FOXA stock is up 28.5%, surpassing the Nasdaq's over 18% gain, and has climbed 55.2% over the past 52 weeks compared to the Nasdaq's over 28% surge [4] Financial Results - In Q4 2025, FOXA reported adjusted EPS of $1.27 and revenue of $3.29 billion, but shares fell 3.7% due to rising SG&A expenses, which increased 9.5% year-over-year, impacting margins [5] - Advertising growth is viewed as less durable due to tough year-over-year comparisons linked to the absence of UEFA and Copa América broadcasts [5] Analyst Sentiment - Analysts remain cautiously optimistic about FOXA, with a consensus rating of "Moderate Buy" from 20 analysts, and the stock is trading above the mean price target of $60.29 [6]

Core Viewpoint - Fox (FOXA) has demonstrated strong financial performance and growth potential, particularly in its Television and Cable Networking segments, making it an attractive investment opportunity for 2025 [2][8]. Financial Performance - In Q3 fiscal 2025, Fox reported a 27% increase in total revenues and achieved the highest free cash flow in its history, exceeding $1.9 billion [3]. - The Super Bowl broadcast contributed over $800 million in advertising revenues, marking it as the most-watched telecast in U.S. history [3]. Segment Performance - Tubi, Fox's free streaming platform, experienced a 35% year-over-year revenue increase, with rising engagement and view time [4]. - The cable segment benefited from a 26% increase in ad revenues, bolstered by Fox News being the most-watched cable channel [4]. Growth Strategy - Fox's growth strategy centers on live content from its core brands: FOX News, FOX Sports, and the FOX Network, capitalizing on the rising demand for live programming [5]. - The company anticipates steady growth in affiliate fees, which will support long-term revenue growth [5]. Market Position - FOX News ranks as the second most trusted and top-rated news channel in the U.S., with FOX Nation gaining traction through 700 hours of original content [6]. Earnings Estimates - The Zacks Consensus Estimate for FOXA's 2025 earnings is $4.52 per share, reflecting a 31.78% year-over-year growth, with revenues projected at $16.11 billion, indicating a 15.24% increase [7]. - FOXA has consistently beaten earnings estimates over the past four quarters, with an average surprise of 25.97% [7]. Investment Outlook - Fox's strong fundamentals, record free cash flow, and momentum in streaming services position it well for continued growth and investor confidence in 2025 [8]. - The company currently holds a Zacks Rank 2 (Buy) and a Growth Score of B, indicating a favorable investment opportunity [9].