What You Need to Know

Fox Corporation (FOX) is a prominent multinational mass media company specializing in TV broadcasting, cable news networks, sports content, and streaming platforms such as Tubi. Based in New York City, it leverages key facilities nationwide to drive its operations. Fox Corp has a market capitalization of $29.49 billion.

Fox is set to report its second-quarter results for fiscal 2026 (quarter ended in December) soon. Ahead of the results, Wall Street analysts expect the company to report a profit of $0.49 per diluted share for Q2, down 49% year-over-year (YOY). However, the company has a solid record of earnings surprises, exceeding estimates in all four trailing quarters.

Analysts expect the company’s bottom line to decline in the current fiscal year. For the full fiscal year 2026, Wall Street analysts expect Fox’s diluted EPS to drop by 6.7% annually to $4.46, followed by a 13% YOY improvement to $5.04 in the next fiscal year.

Based on strong earnings, supported by higher advertising sales and engagement across its portfolio, Fox’s stock has held up well. Over the past 52 weeks, the stock has gained 42.5%, and over the past six months, 31.2%. The broader S&P 500 Index ($SPX) has increased by 17.7% and 11.2% over the same periods, respectively. Therefore, the stock has outperformed the broader market.

We now compare Fox’s performance with that of its sector. The State Street Communication Services Select Sector SPDR ETF (XLC) has increased 21.2% over the past 52 weeks and 10.1% over the past six months. Therefore, Fox has outperformed its sector over these periods.

On Oct. 30, Fox announced its results for the first quarter of fiscal 2026 (quarter ended Sept. 30). The company’s revenue increased 4.9% YOY to $3.74 billion. This was based on Fox’s distribution revenues increasing 2.5% annually to $1.92 billion, as well as advertising revenues rising 6.2% YOY to $1.41 billion.

In fact, Fox’s advertising topline benefited from sustained digital expansion led by the Tubi AVOD platform, higher news pricing, and higher sports ratings. Fox’s adjusted EPS grew 4.1% from the prior-year period to $1.51. Based on the results, the stock gained 8.2% intraday on Oct. 30.

Wall Street analysts have been bullish about Fox Corporation’s future. Among the 14 analysts covering the stock, the consensus rating is “Moderate Buy.” The rating configuration has remained the same over the past three months. The stock has seven “Strong Buy” ratings and seven “Holds.” The mean price target of $69.92 implies a 5.3% upside from current levels, while the Street-high price target of $87 implies 31% upside.

On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com