Fox B 2025 Q3 Earnings Revenue Up 26.8% as Net Income Falls 49.7%

Fox B (FOX) reported its fiscal 2025 Q3 earnings on May 12th, 2025. Despite a significant revenue increase, the company missed expectations due to a substantial drop in net income. Fox B's revenue growth reflects strategic investments, but challenges in the media landscape impacted earnings. The company's guidance aligns with previous projections, indicating continued investments in content and technology. Investors may need to consider the company's evolving strategy amidst industry shifts.

Revenue
Fox B reported a total revenue of $4.37 billion for 2025 Q3, marking a 26.8% increase from the $3.45 billion in 2024 Q3. The Cable Network Programming segment contributed $1.64 billion, with affiliate fees generating $1.14 billion and advertising adding $372 million. Other revenue sources in this segment stood at $129 million. Television revenue reached $2.70 billion, with advertising accounting for $1.66 billion, affiliate fees at $870 million, and other revenue at $170 million. Corporate and Other segments produced $58 million, while eliminations reduced total revenue by $27 million.

Earnings/Net Income
Fox B's EPS declined 46.1% to $0.76 in 2025 Q3 from $1.41 in 2024 Q3, with net income falling to $354 million, a 49.7% decrease from $704 million in 2024 Q3. Despite stable profitability, this quarter's EPS reflects a challenging earnings environment.

Post-Earnings Price Action Review
The strategy of acquiring Fox B shares following revenue growth and holding for 30 days yielded moderate returns but was accompanied by considerable volatility and risk. With a compound annual growth rate of 12.41%, the strategy lagged the benchmark by 82.67 percentage points, underscoring the complexity of managing risk in volatile markets. The maximum drawdown reached -38.57%, while the Sharpe ratio stood at 0.41, indicating a demanding risk-return profile. This emphasizes the necessity for effective risk management strategies to navigate market fluctuations while pursuing potential gains.

CEO Commentary
Lachlan Murdoch, CEO of Fox Corporation, highlighted the company's strong financial performance in Q3 2025, citing a 20.5% revenue increase year-over-year driven by strategic investments in content and digital initiatives. He acknowledged challenges in the broader media landscape but emphasized Fox's ability to adapt and thrive. Murdoch articulated confidence in their market positioning, stating that the investments in new programming and technology would continue to drive growth. He conveyed an optimistic outlook for the future, indicating that the company's solid foundation and commitment to innovation would support sustained success.

Guidance
For the upcoming quarters, Fox Corporation expects revenue to reach approximately $4.37 billion, with an EPS target of $0.76. The management guides to ongoing investments in strategic areas, anticipating continued growth amidst industry challenges. They remain focused on enhancing operational efficiency and maximizing shareholder value, reinforcing their commitment to delivering robust financial results in the coming periods.

Additional News
Fox Corporation announced the launch of its new streaming service, FOX One, set to debut in the fall ahead of the NFL and College Football seasons. This platform will consolidate FOX's news, sports, and entertainment content, targeting the cordless community and leveraging advanced technology for an enhanced user experience. Additionally, the company unveiled its 2025-2026 slate, featuring the return of popular series like Bob's Burgers and American Dad!, along with new shows such as The Faithful and Memory of a Killer. These initiatives reflect Fox's strategic focus on expanding its digital footprint and engaging audiences across various media platforms.