- Fox beat expectations. Fox Corp.’s fiscal first-quarter revenue climbed 22% to $4.57 billion, ahead of the $4.32 billion analysts polled by FactSet expected, with advertising revenue up 47%, The Wall Street Journal reported.
- Profit rose sharply. Net income increased to $957 million, or $2.20 a share, from $609 million, or $1.32 a share, a year earlier. Adjusted earnings were $2.54 a share, compared with analyst estimates of $2.08.
- Sports and politics drove ads. Fox credited the summer’s FIFA World Cup and its Tubi streaming platform for the ad gains, and said it had a record $350 million in political advertising across its portfolio during the midterm cycle, driving strength into its fiscal second quarter.
- Fox News ratings slipped. Prime-time viewership at Fox News fell 28% in October from a year earlier, according to Nielsen, with an even sharper drop among viewers aged 25 to 54, though it remains the most-watched cable news network, ahead of MS NOW and CNN.
What Happened?
Fox reported results Monday and discussed them on an analyst call. CEO Lachlan Murdoch said the October ratings drop at Fox News, weeks ahead of the midterm elections, was due to “viewer fatigue” and difficult comparisons with last year, when the network drew viewers with coverage after the September 2025 death of Charlie Kirk and multiple natural disasters. He said there was similar fatigue during the 2006 midterms: “We’ve seen this playbook and know how to move through it.” Fox and Wall Street Journal parent News Corp share common ownership.
Why It Matters?
The quarter shows how much Fox benefits from big live events and election spending, with a one-time World Cup boost and a record political ad haul powering results well above forecasts. The Fox News ratings decline is the main concern, since the network is central to Fox’s profits. Murdoch’s argument is that the slide reflects tough comparisons rather than a structural problem, and investors will want evidence that viewers return once the election cycle passes.
What’s Next?
The midterm political ad spending is set to carry into the fiscal second quarter, but the World Cup boost will not repeat, making for tougher comparisons ahead. Watch Nielsen ratings for Fox News after Tuesday’s elections to test Murdoch’s viewer fatigue explanation, and Tubi’s growth as a driver of advertising revenue.
Affected Tickers and Coins: FOXA, FOX, NWSA
Source: WSJ
