Fox Corp (NASDAQ:FOXA) Q1 Fiscal 2026 Earnings Top Estimates, Announces $1.5B Buyback

Fox Corporation (NASDAQ:FOXA) reported first-quarter fiscal 2026 earnings that significantly surpassed analyst expectations, though the market's initial reaction appeared muted. The media giant posted strong revenue and profit figures while simultaneously announcing a substantial capital return initiative to shareholders. The company's performance demonstrates resilience in its core broadcasting and cable network segments amid a challenging media landscape.

Earnings and Revenue Performance

Fox delivered robust financial results for the quarter ended September 30, 2025, with both top-line revenue and bottom-line earnings exceeding consensus estimates by considerable margins.

• Revenue: $3.74 billion reported versus $3.64 billion estimated
• Earnings Per Share (Non-GAAP): $1.51 reported versus $1.10 estimated

The company's revenue outperformed expectations by approximately $96 million, representing a beat of roughly 2.6%. More notably, the non-GAAP EPS of $1.51 surpassed the consensus estimate by over 37%, indicating significantly stronger profitability than analysts had projected. This earnings beat was complemented by a net income figure of $609 million and an Adjusted EBITDA of $1.07 billion, underscoring the company's operational efficiency.

Market Reaction and Price Action

Despite the strong earnings beat, the market response has been measured. In pre-market trading, FOXA shares experienced slight downward pressure. This tempered reaction suggests investors may be weighing the positive earnings surprise against broader market concerns or sector-specific headwinds affecting media companies. The stock's recent performance shows mixed signals, with gains over the past week and two-week periods but a slight decline over the past month, reflecting ongoing uncertainty in the media sector.

Capital Return Initiative

A significant highlight from the earnings announcement was Fox's commitment to returning capital to shareholders through a $1.5 billion accelerated share repurchase transaction. This substantial buyback program demonstrates management's confidence in the company's financial health and future prospects, while also potentially providing support for the stock price by reducing share count and increasing earnings per share on a fully diluted basis.

Looking Ahead

While the press release did not provide specific forward-looking guidance, analyst estimates for the coming periods offer context for future performance expectations. For the full fiscal year 2026, analysts project revenue of approximately $16.16 billion. For the second quarter, the consensus estimates point to revenue of around $5.12 billion. The absence of company-provided guidance in the release is standard practice for Fox and does not inherently signal either optimism or concern about future performance.

Conclusion

Fox Corporation's first-quarter results demonstrate strong operational execution, particularly on the profitability front where earnings significantly outpaced expectations. The announcement of a major share repurchase program further reinforces the company's solid financial position and commitment to shareholder returns. However, the muted market reaction indicates that investors continue to assess these positive developments within the context of broader industry challenges facing traditional media companies.

For more detailed earnings information and analyst estimates, visit the FOXA earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has no position in FOXA. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.