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Fox
(NASDAQ:FOXA)
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Rating:70Outperform
Price Target:
$57.00
▲(0.64% Upside)
Action:Reiterated
Date:07/01/26
The score is driven primarily by solid financial quality (profitability, strong cash generation, and improving leverage) and a constructive earnings-call outlook that reiterated record-EBITDA expectations and strong capital returns. These positives are tempered by weak technical positioning (price below all key moving averages) and recent TTM softening in revenue and free cash flow, which adds near-term momentum risk despite a reasonable valuation.
Positive Factors
Strong cash generation & capital returns
Fox’s free cash flow closely tracks earnings and remains substantial, enabling persistent capital returns (buybacks) and funding for strategic investments. Durable cash conversion supports balance sheet flexibility, shareholder returns, and the ability to finance large deals or absorb cyclical ad weakness without immediate distress.
Negative Factors
Softening revenue and FCF momentum
Trailing twelve‑month declines in revenue and FCF indicate recent softness in demand and add uncertainty to the sustainability of cash returns. If this weaker momentum persists, it could force slower buybacks or delay investments and strain operating leverage when ad and distribution cycles normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & capital returns
Fox’s free cash flow closely tracks earnings and remains substantial, enabling persistent capital returns (buybacks) and funding for strategic investments. Durable cash conversion supports balance sheet flexibility, shareholder returns, and the ability to finance large deals or absorb cyclical ad weakness without immediate distress.
Read all positive factors
Fox Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Data provided by:
The Fly
The FlyFox (FOXA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.06B
Dividend Yield0.96%
Average Volume (3M)8.87M
Price to Earnings (P/E)13.6
Beta (1Y)0.59
Revenue Growth0.60%
EPS Growth-5.58%
CountryUS
Employees10,400
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)3.83
Shares Outstanding199,474,440
10 Day Avg. Volume4,359,505
30 Day Avg. Volume8,870,349
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)2.16
Price to Sales (P/S)1.58
P/FCF Ratio8.63
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
$69.67Price Target Upside23.00% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)5.83
Revenue Forecast (FY)$17.36B
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 through a combination of advertising sales, affiliate/subscriber fees, and content licensing/distribution.
1) Advertising revenue (largest and most visible driver): Fox sells advertising across its cable networks (notabl...
Fox Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call highlighted broad underlying momentum across Fox’s core businesses — record third-quarter EBITDA, double-digit adjusted EPS growth, strong digital performance at Tubi, exceptional FOX News monetization and robust sports ratings — while acknowledging sizable headline advertising and GAAP earnings headwinds driven mainly by the one-time absence of the Super Bowl and some timing/seasonality effects. Management emphasized strong free cash flow, significant share buybacks, a healthy balance sheet and confidence entering the upfront, the FIFA World Cup and the midterm political cycle. Operational challenges noted include the Super Bowl comparables, higher sports rights amortization pressure on margins, and the early-stage nature of Fox One which management is monitoring conservatively.Positive Updates
Strong Top-Line and EBITDA Growth
Total company revenue of $4.0 billion and adjusted EBITDA up 11% to $954 million, marking a record third quarter for Fox.
Negative Updates
Headline Advertising Revenue Decline (Super Bowl Impact)
Total company advertising revenue was down 24% on a headline basis due to lapping last year's Super Bowl LIX; Television advertising revenue declined 30% year-over-year for the quarter for the same reason.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Top-Line and EBITDA Growth
Total company revenue of $4.0 billion and adjusted EBITDA up 11% to $954 million, marking a record third quarter for Fox.
Read all positive updates
Company Guidance
Management reiterated that Fox is positioned to deliver "record EBITDA" for FY2026, pointing to Q3 results of $4.0B revenue and adjusted EBITDA +11% to $954M; they said headline advertising was down 24% only because they lapped Super Bowl LIX (which generated >$800M gross last year) and that, ex‑Super Bowl, ad revenue would have grown double‑digits, distribution revenue rose 3% (Cable distribution +5%) while TV distribution is expected to be about flat for the full year before returning to growth in fiscal '27 (just north of one‑third of distribution income up for renewal in FY27); the FIFA World Cup will be split roughly 50/50 between Q4 and FY27 Q1 and should be EBITDA‑accretive on broadcast (less so on the cable net); digital assets are contributing (Tubi revenue +23%, view time +19%, ~100M MAUs, Q3 roughly breakeven) and Fox One is aiding subscriber retention; cash flow and capital return guidance remain strong (Q3 free cash flow $1.77B; cash ~$3.6B, debt $6.6B; FY‑to‑date buybacks $1.95B, cumulative >$8.5B or ~36% of shares), and net digital investment for the year is expected to be comfortably inside last year’s ~ $290M.Fox Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.20B | 16.30B | 13.98B | 14.91B | 13.97B | 12.91B |
| Gross Profit | 5.67B | 5.40B | 13.98B | 14.91B | 13.97B | 12.91B |
| EBITDA | 3.09B | 3.85B | 2.90B | 2.50B | 2.43B | 3.61B |
| Net Income | 1.71B | 2.26B | 1.50B | 1.24B | 1.21B | 2.15B |
Balance Sheet | ||||||
| Total Assets | 21.78B | 23.20B | 21.97B | 21.87B | 22.18B | 22.93B |
| Cash, Cash Equivalents and Short-Term Investments | 3.60B | 5.35B | 4.32B | 4.27B | 5.20B | 5.89B |
| Total Debt | 6.61B | 7.46B | 8.15B | 8.21B | 7.72B | 8.45B |
| Total Liabilities | 10.71B | 10.84B | 10.92B | 11.21B | 10.62B | 11.54B |
| Stockholders Equity | 10.97B | 11.96B | 10.71B | 10.38B | 11.34B | 11.12B |
Cash Flow | ||||||
| Free Cash Flow | 2.36B | 2.99B | 1.50B | 1.44B | 1.58B | 2.15B |
| Operating Cash Flow | 2.62B | 3.32B | 1.84B | 1.80B | 1.88B | 2.64B |
| Investing Cash Flow | -673.00M | -537.00M | -452.00M | -438.00M | -513.00M | -528.00M |
| Financing Cash Flow | -3.16B | -1.75B | -1.34B | -2.29B | -2.06B | -870.00M |
Fox Technical Analysis
Positive
56.64
Price Trends
58.32
Negative
59.97
Negative
62.83
Negative
Market Momentum
-0.36
Negative
46.56
Neutral
29.69
Neutral
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 above the 20-day moving average (MA) of 56.27, below the 50-day MA of 58.32, and below the 200-day MA of 62.83, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 29.69 is Neutral, 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 | $167.04B | 15.37 | 10.29% | 1.58% | 4.02% | 27.66% | |
75 Outperform | $298.60B | 22.20 | 47.96% | ― | 17.62% | 34.80% | |
74 Outperform | $21.51B | 106.51 | 7.64% | ― | 16.78% | ― | |
70 Outperform | $23.06B | 13.56 | 14.86% | 0.99% | 0.60% | -5.58% | |
64 Neutral | $15.76B | 41.82 | 4.88% | 0.73% | -6.39% | -12.34% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $65.94B | -38.12 | -4.94% | ― | -2.78% | 84.26% |
* Communication Services Sector Average
FOXA
Fox
58.23
1.79
3.17%
NWSA
News Corp
27.56
-1.73
-5.90%
DIS
Walt Disney
96.19
-21.46
-18.24%
NFLX
Netflix
71.71
-45.39
-38.76%
ROKU
Roku
145.01
59.18
68.95%
WBD
Warner Bros
26.30
13.50
105.47%
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.