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Fox
(NASDAQ:FOXA)
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Rating:72Outperform
Price Target:
$65.00
▲(14.76% Upside)
Action:Reiterated
Date:08/06/26
FOXA scores well primarily on solid underlying financial strength (profitable business and improving leverage) and a strong, upbeat earnings-call outlook driven by advertising momentum, streaming/digital traction, and continued shareholder returns. The score is tempered by weaker recent cash-flow growth and margin compression versus FY2025, plus only moderate technical trend support.
Positive Factors
Advertising-driven revenue growth
Sustained advertising strength—boosted by live sports, news and political cycles—drove record revenue and EBITDA. That durable demand for live inventory supports recurring cash flow and pricing power in core ad markets, underpinning long‑term operating leverage even as other segments shift.
Negative Factors
Weaker free cash flow momentum
A marked FCF decline reduces cushion for expensive sports rights, large acquisitions and ongoing buybacks. While conversion remains reasonable, a -26.7% FCF swing signals lower near‑term cash flexibility and increases sensitivity to timing of ad receivables and content payments.
Read all positive and negative factors
Positive Factors
Negative Factors
Advertising-driven revenue growth
Sustained advertising strength—boosted by live sports, news and political cycles—drove record revenue and EBITDA. That durable demand for live inventory supports recurring cash flow and pricing power in core ad markets, underpinning long‑term operating leverage even as other segments shift.
Read all positive factors
Fox Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Shows operating profitability by business unit after excluding one-time items, revealing which segments generate steady cash flow and which weigh on margins—important for judging dividend coverage, debt capacity, and funding for rights or growth investments.
Shows operating profitability by business unit after excluding one-time items, revealing which segments generate steady cash flow and which weigh on margins—important for judging dividend coverage, debt capacity, and funding for rights or growth investments.
Data provided by:
The Fly
The FlyFox (FOXA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.58B
Dividend Yield0.87%
Average Volume (3M)8.87M
Price to Earnings (P/E)14.4
Beta (1Y)0.65
Revenue Growth5.07%
EPS Growth-20.95%
CountryUS
Employees10,400
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)3.91
Shares Outstanding199,401,380
10 Day Avg. Volume4,359,505
30 Day Avg. Volume8,870,349
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)1.93
Price to Sales (P/S)1.31
P/FCF Ratio15.31
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$67.78Price Target Upside19.66% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)5.87
Revenue Forecast (FY)$17.54B
Fox Business Overview & Revenue Model
Company Description
Fox Corporation (FOXA) is a prominent U.S.-based media entity, primarily engaged in the creation and distribution of news, sports, and entertainment content. Its operational framework is divided into three main segments: Cable Network Programming,...
How the Company Makes Money
Fox primarily makes money by monetizing its content and audiences through advertising, affiliate distribution fees, and (to a lesser extent) consumer subscription revenues from digital products.
1) Advertising revenue (largest and most visible dr...
Fox Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial story: record annual and quarterly results, exceptional advertising performance driven by the FIFA World Cup, significant momentum at Tubi and FOX One, meaningful capital returns, and strategic expansion via the pending Roku acquisition. Offsetting items included materially higher expenses tied to the World Cup and digital investments, some segment-specific pressures (notably Cable EBITDA and timing-driven content revenue declines), and near-term cash flow timing effects. On balance, the highlights — strong top-line growth, margin expansion on an adjusted basis, digital and streaming traction, and shareholder returns — materially outweigh the headwinds and execution/transaction risks discussed.Positive Updates
Record Annual Revenue and EBITDA
Fiscal 2026 total revenue grew 5% to over $17.0 billion and adjusted EBITDA increased 8% to a record $3.9 billion.
Negative Updates
Higher Expenses Driven by World Cup and FOX One
Total expenses increased 4% for the full year and rose 28% in fiscal Q4 due to World Cup rights and production costs, FOX One first-year costs, and higher digital content costs.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Annual Revenue and EBITDA
Fiscal 2026 total revenue grew 5% to over $17.0 billion and adjusted EBITDA increased 8% to a record $3.9 billion.
Read all positive updates
Company Guidance
Management said fiscal 2027 is off to an excellent start, with advertising momentum carrying into Q1 (World Cup tailwinds and a midterm cycle that trackers estimate at >$11B of political ad spend), World Cup revenues largely weighted to fiscal ’26 with TV bearing the knockout‑stage benefit in early ’27, and distribution renewals returning to a more normalized cadence in fiscal ’27 (skewed toward TV) with both Cable and TV expected to contribute to distribution revenue growth; they expect continued bottom‑line improvement as digital investment moderates (digital spend fell from just under $300M in FY25 to < $200M in FY26), reiterated that the Roku acquisition remains on track to close in H1 calendar 2027 (targeting ~2.8x net leverage on close), and signaled ongoing capital returns — buybacks to continue after repurchasing $2B in FY26 and $8.6B cumulatively (~36% of shares) and an increased semiannual dividend to $0.29 per share — all while exiting the quarter with roughly $4.2B cash, $6.6B debt and generating quarterly free cash flow of $726M.Fox Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.13B | 16.30B | 13.98B | 14.91B | 13.97B |
| Gross Profit | 6.27B | 5.40B | 13.98B | 14.91B | 13.97B |
| EBITDA | 2.96B | 3.85B | 2.90B | 2.50B | 2.43B |
| Net Income | 1.69B | 2.26B | 1.50B | 1.24B | 1.21B |
Balance Sheet | |||||
| Total Assets | 22.48B | 23.20B | 21.97B | 21.87B | 22.18B |
| Cash, Cash Equivalents and Short-Term Investments | 4.21B | 5.35B | 4.32B | 4.27B | 5.20B |
| Total Debt | 6.61B | 7.46B | 8.15B | 8.21B | 7.72B |
| Total Liabilities | 10.75B | 10.84B | 10.92B | 11.21B | 10.62B |
| Stockholders Equity | 11.63B | 11.96B | 10.71B | 10.38B | 11.34B |
Cash Flow | |||||
| Free Cash Flow | 1.47B | 2.99B | 1.50B | 1.44B | 1.58B |
| Operating Cash Flow | 1.97B | 3.32B | 1.84B | 1.80B | 1.88B |
| Investing Cash Flow | -705.00M | -537.00M | -452.00M | -438.00M | -513.00M |
| Financing Cash Flow | -2.41B | -1.75B | -1.34B | -2.29B | -2.06B |
Fox Technical Analysis
Positive
56.64
Price Trends
57.75
Positive
60.26
Positive
62.97
Positive
Market Momentum
1.66
Negative
64.46
Neutral
80.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOXA, the sentiment is Positive. The current price of 56.64 is below the 20-day moving average (MA) of 58.88, below the 50-day MA of 57.75, and below the 200-day MA of 62.97, indicating a bullish trend. The MACD of 1.66 indicates Negative momentum. The RSI at 64.46 is Neutral, neither overbought nor oversold. The STOCH value of 80.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FOXA.
Fox Risk Analysis
Fox disclosed 25 risk factors in its most recent earnings report. Fox reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fox Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $311.42B | 22.98 | 47.96% | ― | 17.62% | 34.80% | |
75 Outperform | $22.38B | 63.25 | 13.18% | ― | 18.52% | ― | |
72 Outperform | $24.58B | 14.39 | 14.74% | 0.99% | 5.07% | -20.95% | |
72 Outperform | $16.22B | 31.73 | 6.62% | 0.73% | 1.06% | 26.22% | |
71 Outperform | $178.76B | 21.24 | 10.29% | 1.58% | 5.31% | -23.96% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $67.96B | -21.77 | -9.22% | ― | -5.87% | -512.89% |
* Communication Services Sector Average
FOXA
Fox
63.05
4.49
7.67%
NWSA
News Corp
28.67
-0.73
-2.47%
DIS
Walt Disney
103.22
-11.75
-10.22%
NFLX
Netflix
74.21
-46.23
-38.39%
ROKU
Roku
151.79
63.70
72.31%
WBD
Warner Bros
27.65
15.60
129.46%
Fox Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Fox secures $1 billion loan to fund Roku acquisition
Positive
Jun 30, 2026
Fox Corporation, which on June 15, 2026 announced its planned acquisition of Roku, Inc., has put in place a significant financing structure to support the deal. On June 30, 2026, the company entered into a senior unsecured term loan credit agreeme...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Fox to Acquire Roku in Strategic Streaming Merger
Positive
Jun 15, 2026
On June 14, 2026, Fox Corporation agreed to acquire Roku through a two-step merger in which Roku shareholders will receive a mix of Fox Class A stock and $96.00 in cash per share, with equity representing roughly 40% of the total consideration and...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsPrivate Placements and Financing
Fox to Acquire Roku, Expanding Streaming and CTV Presence
Positive
Jun 15, 2026
On June 15, 2026, Fox Corporation and Roku, Inc. announced a definitive agreement for Fox to acquire Roku in a cash-and-stock deal valuing Roku at about $22 billion, or $160 per share. The combination will merge Fox’s live sports, news and e...
Executive/Board Changes
Fox Extends CEO and CFO Contracts, Boosts Compensation
Positive
Jun 11, 2026
On June 11, 2026, Fox Corporation’s board and compensation committee unanimously approved extending Executive Chair and CEO Lachlan K. Murdoch’s employment and compensation arrangements through June 30, 2030, while raising his target a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.