$FOX · Fox Corp
Fox Corporation filed its Q1 FY2027 10-Q, reporting revenue of $4.571B (+22.3% YoY), net income attributable to stockholders of $943M (+57% YoY), and diluted EPS of $2.20. The quarter was dominated by a 47% advertising revenue surge to $2.081B, concentrated in the Television segment where political spending drove segment EBITDA from $399M to $934M. The filing also details the pending Roku acquisition with $12B in bridge financing commitments and notes stockholder approvals were obtained in October 2026.
- Revenue of $4.571B, up 22.3% YoY, driven by a 47% surge in advertising revenue to $2.081B.
- Television segment EBITDA more than doubled to $934M from $399M, fueled by political advertising.
- Diluted EPS of $2.20 vs. $1.32 a year ago; net income attributable to Fox stockholders rose 57% to $943M.
- Cable Network Programming EBITDA grew 7% to $859M on higher distribution fees and modest ad gains.
- Pending Roku acquisition: $12B bridge facility in place, stockholder approvals obtained in October 2026, awaiting HSR clearance.
FOX shares up ~1.7% in regular trading, a modest positive reaction suggesting the political-ad-fueled beat was largely anticipated or that the pending Roku deal's execution risk tempers enthusiasm.
The 57% net income surge and Television segment EBITDA more than doubling underscore Fox's outsized leverage to political ad cycles, while the pending Roku deal represents a transformative digital pivot with material execution and regulatory risk.
Political advertising in Q1 of a midterm election year is a cyclical windfall for broadcast-heavy media companies; Fox's 32% Television segment revenue growth mirrors the sector pattern but the magnitude of the EBITDA swing (+134%) stands out versus peers.
The Roku Merger carries up to $1.2B in termination fees if regulatory approvals fail; the $12B bridge facility adds significant leverage risk. FCC licenses ($2.1B gross carrying value) were reclassified from indefinite-lived to finite-lived with 20-year straight-line amortization, which will create a new ongoing earnings headwind.