Key facts
- Fox Corp reported Q4 revenue of $4.21 billion, exceeding estimates of $3.64 billion.
- Fox Corp's adjusted earnings per share were $1.79, beating the estimated $1.42.
- Advertising sales increased by 78%, driven by the FIFA Men's World Cup.
- Fox announced a definitive agreement to acquire Roku for $22 billion.
- Roku reported Q2 revenue of $1.35 billion, beating estimates of $1.30 billion.
Fox Corp reported fourth-quarter financial results that surpassed analyst expectations, with revenue reaching $4.21 billion and adjusted earnings per share at $1.79. The strong performance was largely attributed to a significant boost in advertising sales, which jumped 78%, driven by the broadcast of the FIFA Men's World Cup. Total revenue saw a 28% increase year-over-year.
Distribution revenue rose by 5%, supported by 7% growth in cable network programming. The company also noted continued expansion in its digital offerings, particularly through its AVOD service Tubi. However, content and other revenue experienced a slight dip due to the timing of sports sub-licensing revenue. Net income for the quarter was $696 million, down from $719 million in the prior year.
In a significant strategic development, Fox announced a definitive agreement to acquire the streaming platform Roku for $22 billion in a cash-and-stock transaction. CEO Lachlan Murdoch described fiscal 2026 as an exceptional year, emphasizing the success of the FIFA World Cup broadcast, the launch of the direct-to-consumer service FOX One, the enhancement of Tubi, and the transformative potential of the Roku acquisition. He stated that the company is well-positioned for sustained growth and long-term shareholder value.
Separately, streaming platform Roku reported second-quarter revenue that beat Wall Street estimates, driven by its advertising and subscriptions segments. Roku's advertising revenue rose 25% to $673 million, while subscription revenue climbed 26% to $548 million. The company's total revenue grew 21.6% to $1.35 billion, exceeding analysts' average estimate of $1.30 billion. Roku benefits from consumers leaving traditional TV and has focused on improving its ad-tech and content discovery tools.