Fox Corp Q1 Revenue Rises; $1.5B Buyback Announced

Fox Corp. reported fiscal Q1 revenue of $3.74 billion, up about 4.9% year-over-year and topping Wall Street estimates, with adjusted EPS of $1.51 — roughly 42% above consensus. Advertising revenue rose about 6%, driven by digital growth at Tubi, stronger Fox News pricing and higher sports pricing and NFL ratings; Fox News added 350 national advertisers and delivered its highest ad-revenue quarter ever. Tubi reached profitability faster than expected and the company launched Fox One as a $19.99/month streaming subscription, with early adoption said to have exceeded management’s expectations. GAAP operating profit fell to about $599 million and net income was about $609 million, weighed down by higher digital marketing, content and programming amortization. Management announced a $1.5 billion share buyback, but free cash flow turned negative and some analysts warned revenue could soften next year despite margin improvements and the earnings beat.