Fox kicked off fiscal 2026 with a 5% year-over-year revenue gain, reporting $3.74 billion for the quarter. The $174 million increase was driven largely by Tubi, the return of the NFL, and a surprisingly robust ad market. The headline may be top-line growth, but the real story is how Fox is recalibrating for a post-linear future with tangible gains from its digital portfolio.
Tubi was the breakout performer this quarter. The FAST platform not only drove a 6% jump in overall ad revenue but also hit profitability for the first time, earlier than expected. Revenue at Tubi was up 27%, and viewing time increased 18%. Lachlan Murdoch said during the earnings call that Tubi could contribute 20 to 25% to Fox’s EBITDA over the medium term. That’s not an experimental side project anymore; that’s core business.
Murdoch also highlighted Fox One’s performance, noting that the direct-to-consumer product has exceeded initial subscriber targets. Fox One is thriving in bundles, particularly with Verizon and ESPN. Viewing trends show weekdays dominated by news, with sports taking over on weekends. Usage patterns suggest a balanced content value prop that’s sticky across the week.
Distribution revenue rose 3%, with the cable networks and broadcast segments both delivering incremental growth. Fox News continues to hold the number one cable position year to date, and Murdoch says advertisers are responding. He pointed to 350 new national clients and rising spend levels. CPMs for Fox News are reportedly half that of broadcast, making it a cost-efficiency story that’s resonating.
Political ad dollars declined year over year due to the lack of election-related spending. But stronger sports pricing, fueled by the NFL, and improved news pricing helped offset the dip.
Fox announced a $1.5 billion accelerated share repurchase program, starting on Halloween. The move appears to be both a shareholder confidence play and a bet on the momentum continuing into the rest of FY2026.
Net income came in at $609 million, down 27% year over year. But last year’s Q1 benefited significantly from one-time non-operating gains related to Fox’s Flutter investment. Without that boost, the earnings decline isn’t as sharp as the raw numbers suggest.
Fox is threading the needle between protecting its linear base and investing in scalable, digital-first growth. Tubi is now a profit engine. Fox One is showing promise as a DTC offering. And even legacy properties like Fox News are driving advertiser demand in unexpected ways. The topline growth is solid, but it’s the strategic rebalancing that really stands out this quarter.
