Q4 2026 Fox Corp Earnings Call Transcript
Key Points
- Record fiscal 2026 revenue of over $17 billion and EBITDA of $3.9 billion, with 5% and 8% growth respectively.
- Fiscal Q4 revenue surged 28% to $4.2 billion and EBITDA rose 27% to $1.2 billion, driven by a 78% increase in advertising revenue from the FIFA World Cup and Tubi's strong performance.
- Fox One streaming service exceeded expectations, driving incremental subscriber growth with minimal cannibalization of traditional Pay-TV and strong retention rates.
- Tubi delivered its best quarter ever with 35% revenue growth, 17% increase in viewing time, and 110 million monthly active users, while remaining EBITDA positive.
- Strong advertising momentum continues into fiscal 2027, with one of the strongest upfronts in history, double-digit volume growth, and record midterm political ad revenue expected.
- Capital returns remain robust, with $2 billion in buybacks during fiscal 2026, a dividend increase to $0.29 per share, and cumulative $10.7 billion returned to shareholders since spin-off.
- Digital investment losses moderated to under $200 million in fiscal 2026 from nearly $300 million in fiscal 2025, with further improvement expected in fiscal 2027.
- Cable segment EBITDA declined 3% in Q4 due to higher sports programming costs, including World Cup rights and production expenses.
- Content and other revenue in the cable segment fell 39% in Q4 due to timing of sports sub-licensing revenue.
- Total expenses increased 28% in Q4, driven by World Cup costs, Fox One first-year costs, and higher digital content costs.
- Free cash flow in Q4 was impacted by World Cup working capital timing, with rights payments in fiscal 2026 and advertising receivables collected in fiscal 2027.
- The CTV advertising market remains highly competitive and price-sensitive, though Tubi has managed to maintain pricing.
- Net income attributable to stockholders declined to $1.7 billion in fiscal 2026 from $2.3 billion in fiscal 2025, due to higher costs and prior-year Super Bowl and election benefits.
- The pending Roku acquisition adds uncertainty and limits commentary, with closing expected in the first half of calendar 2027.
Ladies and gentlemen, thank you for standing by. Welcome to the Fox Corporation fourth-quarter fiscal year 2026 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
I'll now turn the conference over to Chief Investor Relations Officer, Ms. Gabrielle Brown. Please go ahead, Ms. Brown.
Thank you, Polly. Good morning and welcome to our fiscal 2026 fourth-quarter earnings call. Joining me on the call today are Lachlan Murdoch, Executive Chair and Chief Executive Officer; John Nallen, President and Chief Operating Officer; and Steve Tomczyk, our Chief Financial Officer.
First. Lachlan and Steve will give some prepared remarks on the most recent quarter, and then we'll take questions from the investment community. Please note that this call may include forward-looking statements regarding Fox Corporation's financial performance and operating results. These statements are based on management's current
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