FOXA Q2 Deep Dive: Live Events and Digital Growth Drive Outperformance

Cable news and media network Fox (NASDAQ:FOXA) announced better-than-expected revenue in Q2 CY2026, with sales up 28.1% year on year to $4.21 billion. Its non-GAAP profit of $1.79 per share was 29.3% above analysts’ consensus estimates.

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StockStory’s Take

Fox’s second quarter was marked by strong results, with management crediting the outperformance to robust advertising momentum across its live sports and news programming, as well as rapid growth in its streaming platform, Tubi. CEO Lachlan Murdoch highlighted the successful broadcast of the FIFA Men’s World Cup and the launch of FOX One as key contributors to audience engagement and incremental revenue. Murdoch pointed out, “We are very pleased with the strength of the demand for impressions across sports, news, the local stations, Tubi and also entertainment.”

Looking ahead, Fox’s management expects digital initiatives and live event programming to continue supporting growth. The company is focused on further scaling FOX One and maintaining Tubi’s momentum, while preparing for a political advertising tailwind from the upcoming midterm elections. Murdoch noted that FOX is “well positioned to benefit from the midterm cycle,” and CFO Steve Tomsic emphasized that digital investment will moderate as platforms become more profitable. Management also sees the pending acquisition of Roku as a catalyst for expanding its connected TV and advertising reach.

Key Insights from Management’s Remarks

Management attributed the strong quarter to the World Cup’s impact on advertising, continued digital expansion, and new product rollouts. Segment performance was shaped by event-driven gains and strategic investment moderation.

• World Cup impact: The broadcast of the FIFA Men’s World Cup drove a significant increase in advertising revenue, with FOX leveraging its cross-platform capabilities to maximize audience reach. The event allowed the company to showcase its ability to deliver live premium sports at scale and generated incremental subscriber growth for FOX One.
• Tubi’s accelerating growth: Tubi achieved 35% revenue growth in the quarter, fueled by a 17% rise in total viewing time and successful engagement of cordless viewers. Management highlighted Tubi’s large share of hard-to-reach audiences, positioning it as a valuable advertising vehicle within the competitive connected TV landscape.
• FOX One launch success: The company’s new direct-to-consumer streaming service, FOX One, exceeded management’s expectations for subscriber acquisition and retention. Murdoch stressed that FOX One’s growth has not cannibalized traditional pay-TV subscribers, reinforcing the strategy of targeting the cordless population.
• Advertising strength across categories: FOX saw broad-based advertising momentum, with double-digit upfront volume growth in categories such as entertainment, financial, technology, and telecom. Murdoch attributed this to strong demand for impressions across both linear and digital properties.
• Disciplined digital investment: Digital investment was moderated compared to the prior year, as Tubi and FOX One performance allowed for improved operating leverage. CFO Tomsic noted that the company expects continued bottom-line improvement from digital initiatives in the coming quarters.

Drivers of Future Performance

Fox anticipates that live event programming, digital platform expansion, and political advertising will drive results in the upcoming quarters, while its digital profitability focus shapes margin expectations.

• Political advertising tailwind: Management expects the upcoming midterm elections to generate record political ad revenue, particularly at local stations and Tubi. CEO Murdoch referenced third-party estimates suggesting over $11 billion in total political ad spend for the cycle, positioning FOX to surpass prior midterm ad revenue benchmarks.
• Digital platform scaling: Tubi and FOX One are expected to continue delivering growth, supported by their reach among cordless viewers and strong subscriber retention. CFO Tomsic projected ongoing improvement in digital profitability as investment requirements decrease and engagement metrics remain robust.
• Roku acquisition as strategic catalyst: The pending acquisition of Roku is intended to bolster FOX’s connected TV distribution and advertising business. Management believes the deal will expand the company’s digital footprint, enhance its data and ad tech capabilities, and drive long-term growth opportunities in the streaming ecosystem.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace of digital revenue growth at Tubi and FOX One, (2) the extent to which political advertising provides an uplift during the midterm cycle, and (3) progress on closing and integrating the Roku acquisition. We will also watch for updates on sports rights renewals and subscriber retention across platforms.

FOX currently trades at $61.71, up from $58.68 just before the earnings. Is there an opportunity in the stock? See for yourself in our full research report (it’s free).

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