The Numbers
$3.74 billion—Quarterly revenues increased by $174 million, or up +5% from the previous quarter.
6%—Advertising revenue growth, led primarily by continued growth at Tubi, stronger news pricing, and higher sports pricing and ratings led by the NFL, which partially offset lower political advertising revenues.
3%—Distribution revenue increased, driven by +3% growth in the cable networking programming segment, and +2% growth in the TV segment.
27%—Quarterly net income decreased from the prior year quarter ($609 million vs. $832 million).
The watercooler talk
Fox Corp. executives had high praise for their AVOD streaming service, Tubi, as well as the Fox One subscription service during the first quarter 2026 earnings call. Tubi reached profitability for the first time ever during the last quarter, with Fox Corp. CEO Lachlan Murdoch saying he expects Tubi to be a meaningful contributor to the company’s EBITDA “over the medium term,” with contribution expectations in the 20-25% range. Tubi’s revenue increased by 27%, and total viewing time rose by 18%.
As for its direct-to-consumer streaming service, Fox One, it had exceeded early subscription expectations, with the product performing best when bundled. At launch, Fox One was part of two bundle options, with Verizon and ESPN. Murdoch also noted that there was a healthy mix of viewing between news and sports on Fox One, with news consumption during the week and sports on the weekend.
Murdoch said they are witnessing the strongest advertising market since Fox Corp’s inception in 2019. He spoke about Fox News’ position as the No. 1 channel on TV, year to date. He said its CPMs are half those of broadcast rates, making it a very efficient buy for its clients. He said Fox News has 350 new national clients this year and is increasing their spend on the network. Murdoch also spoke about the ongoing World Series, which is airing on Fox Broadcasting and will likely see revenue surpass that of the 2024 postseason.
The key quote
“Coming off a record fiscal 2025, our strong operating momentum has carried through the first quarter of fiscal 2026. We are delivering for audiences with continued engagement growth across the portfolio, which underpins the robust advertising demand we are seeing across sports, news, entertainment, and Tubi. The quality of our assets and their consistent capacity to deliver financially gives me great confidence in the positive outlook for Fox.” – Lachlan Murdoch, CEO of Fox Corp.
