Fox (FOXA)
NASDAQ:FOXA
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Fox
(NASDAQ:FOXA)
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Rating:68Neutral
Price Target:
$64.00
▲(1.98% Upside)
Action:DowngradedDate:02/05/26
The score is driven primarily by solid financial fundamentals (profitability, ROE, manageable leverage, and strong absolute free cash flow) and a generally positive earnings-call outlook with streaming/engagement momentum and shareholder returns. This is tempered by weak near-term technicals (downtrend and negative MACD) and some profitability/margin pressure highlighted in the latest quarter.
Positive Factors
Strong free cash flow
TTM free cash flow near $2.5B and FCF at ~88% of net income provide durable internal funding for rights payments, buybacks and the dividend. Strong absolute cash generation underpins capital allocation flexibility and resilience through advertising and seasonal cycles.
Negative Factors
Declining EBITDA and net income
Adjusted EBITDA and GAAP net income declined despite revenue growth, indicating margin compression from higher costs and investments. If revenue gains don't scale margins, recurring profitability and free-cash-flow generation could be pressured over the medium term, limiting reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
TTM free cash flow near $2.5B and FCF at ~88% of net income provide durable internal funding for rights payments, buybacks and the dividend. Strong absolute cash generation underpins capital allocation flexibility and resilience through advertising and seasonal cycles.
Read all positive factors
Fox (FOXA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.17B
Dividend Yield0.75%
Average Volume (3M)4.00M
Price to Earnings (P/E)34.5
Beta (1Y)0.52
Revenue Growth14.91%
EPS Growth9.30%
CountryUS
Employees10,200
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.82
Shares Outstanding200,693,860
10 Day Avg. Volume3,538,722
30 Day Avg. Volume4,002,899
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)2.16
Price to Sales (P/S)1.58
P/FCF Ratio8.63
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue2.07
Enterprise Value/Gross Profit6.26
Enterprise Value/Ebitda10.23
Forecast
1Y Price Target
$69.54Price Target Upside10.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)4.66
Revenue Forecast (FY)$16.29B
Fox Business Overview & Revenue Model
Company Description
Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.). The company operates through Cable Network Programming; Television; and Other, Corporate and Eliminations segments. The Cable Network Programming se...
How the Company Makes Money
Fox makes money mainly by monetizing audiences and distribution rights across its television and cable networks. A significant portion of revenue comes from advertising and marketing services sold across FOX’s national broadcast network, its owned...
Fox Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presented multiple material operational and strategic wins — broad-based advertising strength (especially in sports and news), notable streaming momentum with Tubi profitability and growing engagement, successful early uptake of Fox One, and strong shareholder returns. These positives were tempered by margin and profitability pressures: adjusted EBITDA and GAAP net income declined, the TV segment experienced a significant EBITDA drop, higher sports rights/production costs, and a seasonal free cash flow deficit. Overall, the momentum in revenue, audience engagement and strategic initiatives appears to outweigh the near-term earnings and cost headwinds.Positive Updates
Total Revenue Growth
Total revenues of $5.18 billion, a 2% increase year-over-year, driven by strength in advertising, distribution, and streaming.
Negative Updates
Decline in Adjusted EBITDA
Quarterly adjusted EBITDA was $692 million versus $781 million prior year, a decline of $89 million (≈ -11%), as revenue gains were offset by higher expenses including digital growth initiatives and elevated sports programming and production costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Revenue Growth
Total revenues of $5.18 billion, a 2% increase year-over-year, driven by strength in advertising, distribution, and streaming.
Read all positive updates
Company Guidance
Management said it expects momentum to continue into the second half of FY2026, pointing to a robust political advertising cycle and a profitable FIFA World Cup, and reiterated targets and seasonality: total Q2 revenues were $5.18B with adjusted EBITDA of $692M and adjusted EPS of $0.82 (adjusted net income $360M); advertising was up 1%, distribution revenue up 4%, cable revenues $2.28B (+5%) with cable EBITDA $687M (+5%), television revenues $2.94B with TV EBITDA $143M, Tubi revenue +19% and total viewer time +27% YoY (Tubi achieved EBITDA profitability for the second consecutive quarter), total minutes viewed across brands +15% in CY2025, and scatter news pricing up ~46–47% YoY alongside ~200 new advertisers this half; management expects Fox One to reach low‑to‑mid single‑digit millions of subscribers over the next 3–4 years (subscriber declines improved to ~6.3% ex‑Fox One), free cash flow seasonality (Q2 FCF deficit $71M) to reverse in H2, remaining ASR settlement and continued buybacks (additional $1.8B FY‑to‑date, cumulative repurchases $8.4B or ~35% of shares), a $0.28/share semiannual dividend, and a strong balance sheet with ~$2B cash and $6.6B debt.Fox Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.58B | 16.30B | 13.98B | 14.91B | 13.97B | 12.91B |
| Gross Profit | 5.48B | 5.40B | 13.98B | 14.91B | 13.97B | 12.91B |
| EBITDA | 3.35B | 3.85B | 2.90B | 2.50B | 2.43B | 3.61B |
| Net Income | 1.89B | 2.26B | 1.50B | 1.24B | 1.21B | 2.15B |
Balance Sheet | ||||||
| Total Assets | 21.47B | 23.20B | 21.97B | 21.87B | 22.18B | 22.93B |
| Cash, Cash Equivalents and Short-Term Investments | 2.02B | 5.35B | 4.32B | 4.27B | 5.20B | 5.89B |
| Total Debt | 8.34B | 7.46B | 8.15B | 8.21B | 7.72B | 8.45B |
| Total Liabilities | 10.35B | 10.84B | 10.92B | 11.21B | 10.62B | 11.54B |
| Stockholders Equity | 10.93B | 11.96B | 10.71B | 10.38B | 11.34B | 11.12B |
Cash Flow | ||||||
| Free Cash Flow | 2.54B | 2.99B | 1.50B | 1.44B | 1.58B | 2.15B |
| Operating Cash Flow | 2.73B | 3.32B | 1.84B | 1.80B | 1.88B | 2.64B |
| Investing Cash Flow | -690.00M | -537.00M | -452.00M | -438.00M | -513.00M | -528.00M |
| Financing Cash Flow | -3.34B | -1.75B | -1.34B | -2.29B | -2.06B | -870.00M |
Fox Technical Analysis
Neutral
62.76
Price Trends
60.06
Positive
65.06
Negative
61.72
Negative
Market Momentum
-0.04
Negative
58.16
Neutral
80.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOXA, the sentiment is Neutral. The current price of 62.76 is above the 20-day moving average (MA) of 58.39, above the 50-day MA of 60.06, and above the 200-day MA of 61.72, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 80.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $430.87B | 36.11 | 43.25% | ― | 15.49% | 35.54% | |
70 Outperform | $14.36B | 31.10 | 12.52% | 0.76% | -16.36% | 29.53% | |
68 Neutral | $25.17B | 34.54 | 16.22% | 0.75% | 14.91% | 9.30% | |
68 Neutral | $176.78B | 21.11 | 11.35% | 1.10% | 3.61% | 152.34% | |
64 Neutral | $14.75B | 180.68 | 3.40% | ― | 16.61% | 83.98% | |
62 Neutral | $68.27B | 98.11 | 2.05% | ― | -4.29% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
FOXA
Fox
62.76
13.71
27.95%
NWSA
News Corp
24.59
-0.81
-3.17%
DIS
Walt Disney
99.79
15.49
18.37%
NFLX
Netflix
102.05
9.93
10.78%
ROKU
Roku
100.04
40.77
68.79%
WBD
Warner Bros
27.53
19.43
239.88%
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.