Earnings Analysis November 2, 2026

Fox Corp ($FOX) Q1 FY2027 Earnings Analysis: Revenue Up 22% on World Cup Advertising, a Quarterly Record

Earnings Report

Revenue: $4.571 billion (+22% YoY, consensus not confirmed)

EPS (Earnings Per Share): $2.20 ($2.54 adjusted, $1.32 in the same period last year)

Guidance: Not provided

Stock Reaction: After-hours +1.87% ($57.25, as of 11-02 21:00 KST)

Highlights

22% Revenue Increase: $4.571 billion, a record high for the first quarter

Advertising Revenue Surged 47%: $2.081 billion, driven by World Cup broadcasting and political advertising

Adjusted EBITDA Increased 54%: $1.641 billion, with the television segment growing 134%

The numbers confirm that this was the first quarter of the fiscal year in which the World Cup took place. It is also evident that growth was not concentrated in a single segment, as both advertising and distribution revenues increased together.

Lowlights

Surge in Sports Production Costs: Amortization of broadcasting rights and production costs offset the revenue growth

Interest Expense Increased 60%: $80 million, up from $50 million in the same period last year

Widening Deficit in Corporate and Other Segment: Adjusted EBITDA recorded a loss of $152 million

As revenue grew, the amortization of sports broadcasting rights and digital content costs also increased. The rise in interest expenses and losses in other segments are factors that reduced the margin of profit improvement.

What the Company Said

Executive Chair and Chief Executive Officer Lachlan Murdoch assessed that fiscal year 2027 has started with record-high first-quarter revenue and adjusted EBITDA. He did not provide guidance for the next quarter or annual figures, expressing only confidence in the momentum continuing across the business.

Market Reaction and Future Outlook

After-hours shares rose as record-high first-quarter revenue and adjusted EBITDA were confirmed. Since the company did not provide guidance for the next quarter, the next key point to watch is the advertising trend in the second quarter, once the World Cup effect subsides.

It remains to be seen whether advertising revenue will continue its double-digit growth in the second quarter.

It is necessary to confirm how much the amortization of sports broadcasting rights and digital content costs will reduce the growth of adjusted EBITDA.

Whether political advertising remains after the election cycle concludes is a variable for second-half earnings.