Fox's World Cup Supercharge: Record Ad Revenue, Digital Inflection, and a Patient Pivot on NFL Rights
A record fiscal year with a direct-to-consumer breakthrough, shrinking digital losses, and a disciplined stance on the NFL's next rights cycle.
FOX · Earnings Call · 2026-08-06
A Record Year, Fueled by the World Cup
Fox Corporation closed fiscal 2026 with both top and bottom line records, powered by the 2026 FIFA Men's World Cup. Total revenue rose 5% to over $17 billion, while EBITDA grew 8% to a record $3.9 billion. In the fourth quarter alone, total revenue jumped 28% and EBITDA rose 27%, driven by a 78% surge in advertising revenue. “Advertising revenue during the quarter was notably strong, increasing 78% with growth fueled by continued strength of Tubi, healthy advertising trends across the broader FOX portfolio and our broadcast of the first stages of the 2026 FIFA Men's World Cup.” — Lachlan Murdoch, Executive Chair and Chief Executive Officer · 2026-08-06 The tournament, which spanned the entire FOX ecosystem—from the network to FOX One and Tubi—also delivered a marketing and subscriber acquisition boost, particularly for FOX One.
Yet the event's costs were substantial: expenses rose 28% in the quarter, led by sports programming rights amortization and production. World Cup rights and production costs were the primary driver, and that is visible in the margin picture. Operating margin fell 4.9 percentage points year over year to 5.9% in the fiscal fourth quarter, even as revenue soared. Management clearly sees this as a one-time investment that builds long-term relationships with leagues and viewers. Lachlan Murdoch noted:
We'll be ready to engage with the NFL on the opt-out seasons and beyond at a date closer to the 2030 season, which has been the customary timetable.
Digital: FOX One and Tubi Turn the Corner
Beneath the World Cup headlines, the bigger strategic story is the maturation of FOX's digital investments. FOX One exceeded expectations, adding subscribers with minimal cannibalization of traditional pay-TV. As Lachlan said, “we continue to see minimal cannibalization of our traditional pay-TV business, reinforcing our strategy of targeting the cordless population” — Lachlan Murdoch, Executive Chair and Chief Executive Officer · 2026-08-06. That discipline is showing up in the numbers: net digital investments fell to under $200 million in fiscal '26, down from roughly $300 million the year before, and CFO Steve Tomsic expects continued improvement into fiscal '27.
Tubi also proved its pricing power in a competitive CTV market, growing revenue 35% in the quarter on 17% higher viewing time. “The CTV market remains very competitive... Tubi has seen a 35% revenue growth, so has competed exceedingly well despite the heavy competition.” — Lachlan Murdoch, Executive Chair and Chief Executive Officer · 2026-08-06 This momentum is translating into a healthier digital P&L, with Tubi EBITDA positive for all four quarters of fiscal '26. The trajectory marks a clear inflection from the heavy investment phase of prior years—net digital investments are now a source of earnings growth rather than drag.
The Road Ahead: Political, NFL, and Roku
Management is confident about the near-term catalysts. The midterm political cycle is expected to deliver record advertising revenue, with industry estimates of over $11 billion in spend. “this combined with what we're already seeing in an off-cycle year, strong political revenue, we believe this will be a record midterm cycle for us.” — Lachlan Murdoch, Executive Chair and Chief Executive Officer · 2026-08-06 Meanwhile, the NFL discussion has been resolved—at least for now. On the prior call, management had said, “we have 4 years left on our current deal... we've had no substantive discussions with the NFL about that.” — Lachlan Murdoch, Executive Chair and Chief Executive Officer · 2026-05-11 This quarter, they confirmed no amendments to the existing contract through 2029, a notable pivot from the speculation that the league would push for early renegotiation.
Finally, the pending acquisition of Roku remains on track, expected to close in the first half of calendar 2027. While management is tight-lipped on details, the strategic logic is clear: extending FOX's reach in connected TV distribution and advertising, building on the success of Tubi and FOX One. With a fortress balance sheet, continued buybacks, and a rising dividend, FOX enters fiscal '27 with momentum across every major revenue line—and a clearer path to sustained digital profitability.