Abstract
Fox Corporation Class B will report fiscal Q2 2026 results on February 04, 2026, Pre-Market; this preview compiles last quarter results, current-quarter forecasts, and recent analyst commentary to frame expectations and key debates.
Market Forecast
Consensus for the current quarter points to revenue of $5.05 billion, up 4.22% year over year, with EBIT of $0.37 billion and EPS of $0.49, implying lower profitability versus the prior year. The model-implied setup suggests a mixed margin profile this quarter with no explicit consensus on gross profit margin or net margin, while adjusted EPS is projected to decline by 25.66% year over year. The main business mix remains anchored by Television and Cable Network Programming, with continued benefits from marquee live sports. The most promising segment this quarter is Television, supported by NFL and college football, with segment revenue last quarter of $2.05 billion and visible year-on-year uplift into the holiday sports window.
Last Quarter Review
In the previous quarter (fiscal Q1 2026), Fox Corporation Class B reported revenue of $3.74 billion, a gross profit margin of 44.25%, GAAP net profit attributable to shareholders of $0.60 billion, a net profit margin of 16.02%, and adjusted EPS of $1.51, which increased by 4.14% year over year. A notable upside surprise came from operating performance, where EBIT reached $0.97 billion versus a $0.74 billion consensus estimate. By segment, Television delivered $2.05 billion and Cable Network Programming generated $1.66 billion, reinforcing the core contribution from live sports and news affiliates, while Company and Other recorded $0.09 billion.
Current Quarter Outlook (with major analytical insights)
Television: NFL momentum, holiday ratings tailwinds, and ad scatter stabilization
Television remains Fox Corporation Class B’s primary engine, and the current quarter benefits from a dense calendar of high-audience NFL and college football events. Thanksgiving week delivered landmark audiences across the league, and Fox’s daytime NFL window achieved record viewership during the holiday, signaling attractive pricing power for scatter inventory into the season’s final weeks. This strength should partially offset a softer political-ad lull before the primary ramp and help blunt cyclicality in entertainment advertising. The near-term debate centers on whether ratings gains translate into realized yield amid a mixed macro backdrop for advertising and a measured recovery in certain brand categories. Given the company’s guidance cadence and the market’s conservative margin assumptions, outperformance would likely require tangible upside in in-game ad pricing and better-than-expected affiliate fee growth flowing through the quarter.
Cable Network Programming: Affiliate price discipline, sports costs, and audience engagement
The cable portfolio is structurally supported by multi-year affiliate contracts that drive stable, high-margin revenue, even as industry pay-TV trends remain pressured. This quarter’s setup reflects continued affiliate price escalators and steady engagement for news and sports. The margin path hinges on sports rights amortization and production costs, which are seasonally heavier during the football cycle. While topline should be resilient, EBIT sensitivity to programming investment remains the key factor for quarterly EPS variance. Sustained distribution breadth and healthy digital extensions can mitigate linear pressure, and the company’s consistent cost focus should help preserve a balanced contribution to group margins.
Key stock-price drivers: Live sports outperformance, advertising recovery cadence, and visibility on margins
Investor attention is concentrated on how ratings leadership in live sports converts to revenue and profit resilience. Strong holiday football ratings provide a supportive backdrop for the Television segment, but the realized revenue impact depends on ad sell-through and pricing outcomes in both upfront and scatter markets. Margin visibility is the second pillar: with consensus modeling lower EBIT and EPS year over year, any evidence of cost discipline or mix shift toward higher-yield ad categories can drive positive estimate revisions. Finally, the pace of advertising recovery across national brand categories and local markets will influence sentiment; early stabilization, combined with proven sports audience scale, would be viewed constructively.
Analyst Opinions
Recent commentary is predominantly constructive, with a majority of institutions indicating positive expectations into the print. One highlighted view came from Bank of America Securities, where coverage maintained a Buy stance, citing the combination of live sports audience scale and disciplined cost management as a supportive setup for sustained cash generation. Broader institutional commentary emphasizes the durability of Fox Corporation Class B’s sports-led strategy during peak football months and the likelihood that ratings strength enhances the company’s negotiating leverage with advertisers and distributors. The bullish camp argues that consensus has already embedded prudent margin assumptions—EPS projected at $0.49 and EBIT at $0.37 billion—leaving room for upside if ad demand shows even modest improvement or if cost phasing proves more favorable than feared. In this framework, strong Thanksgiving and late-season NFL viewership provide visible green shoots for near-term monetization, leading optimistic analysts to frame potential positive revisions on revenue and cash flow as the key catalyst path. The balance of this debate centers on how quickly the advertising backdrop recovers across categories like autos, entertainment, and retail; yet the majority view expects sports performance and stable affiliate revenue to underpin results while reducing downside risk to margins in the quarter.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments