Why Is Fox (FOXA) Down 11% Since Last Earnings Report?

It has been about a month since the last earnings report for Fox (FOXA). Shares have lost about 11% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Fox due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Fox Corporation before we dive into how investors and analysts have reacted as of late.

FOXA Q2 Earnings Surpass Estimates, Revenues Increase Y/Y

Fox Corporation reported second-quarter fiscal 2026 adjusted earnings of 82 cents per share, which beat the Zacks Consensus Estimate by 74.47%. The figure decreased 14.6% year over year.

Revenues increased 2% year over year to $5.18 billion, surpassing the consensus mark by 2.47%. 

Distribution revenues (38.6% of total revenues) increased 4% year over year to $2 billion, driven by 5% growth at the Cable Network Programming segment and 1% growth at the Television segment.

Advertising revenues (47.4% of total revenues) increased 1% year over year to $2.46 billion, primarily fueled by higher sports and news pricing, continued digital growth led by the Tubi AVOD service and the impact of additional MLB postseason games, partially offset by lower political advertising revenues and lower ratings.

Content and other revenues (14% of total revenues) remained essentially unchanged year over year at $725 million.

Top-Line Details

Cable Network Programming revenues (43.9% of total revenues) increased 5% year over year to $2.28 billion. Advertising revenues grew 7%, whereas revenues from Distribution rose 5% year over year. Content and other revenues increased 4% on a year-over-year basis.

Television revenues (56.7% of total revenues) declined 1% from the year-ago quarter's figure to $2.94 billion. Advertising revenues increased 1.36% year over. 

Distribution revenues grew 1% year over year, driven by higher average rates at the company's owned and operated television stations and increases in fees from third-party FOX affiliates.

Content and other revenues decreased 19% year over year to $142 million, primarily due to lower entertainment content and other revenues, which were impacted by the timing of deliveries.

Operating Details

In the second quarter of fiscal 2026, operating expenses increased 3.2% year over year to $3.9 billion. As a percentage of revenues, operating expenses expanded 90 basis points (bps) to 75.2%.

Selling, general & administrative (SG&A) expenses rose 13.3% year over year to $595 million. As a percentage of revenues, SG&A expenses expanded 120 bps to 11.5%.

Total adjusted EBITDA decreased 11.4% year over year to $692 million. Adjusted EBITDA margin contracted 190 bps to 13.4%.

Cable Network Programming EBITDA rose 5% year over year to $687 million. Television reported an adjusted EBITDA of $143 million, down 30% from the year-ago quarter.

Balance Sheet

As of Dec. 31, 2025, Fox had $2.02 billion in cash and cash equivalents compared with $4.37 billion as of Sept. 30, 2025.

As of Dec. 31, 2025, Fox's total borrowings stood at $6.6 billion, unchanged from $6.6 billion as of Sept. 30, 2025.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -15.91% due to these changes.

VGM Scores

At this time, Fox has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Fox has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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