Is Fox Corporation (NASDAQ:FOXA) Poised for Sustained Growth Amid Strong Technical and Fundamental Momentum?

Fox Corporation (NASDAQ: FOXA) has emerged as a standout performer in the media and entertainment sector in late 2025, with its stock price surging from $66.39 to $73.82. This outperformance has sparked debate among investors: is it a reflection of durable improvements in the company's fundamentals and technical indicators, or a temporary overreaction to short-term gains? A deep dive into the firm's Q4 2025 financial results and technical metrics suggests that Fox is indeed positioned for sustained growth, supported by a combination of robust earnings, disciplined cost management, and favorable market dynamics.

Fundamental Momentum: Earnings, Margins, and Strategic Shifts

Fox's Q4 2025 results underscore a company in transition. The firm reported adjusted EPS of $1.27, a 29.5% beat over forecasts and a 41.1% year-over-year increase. Revenue of $3.29 billion exceeded expectations by 5.45%, driven by a 7.1% rise in advertising revenue and a 33.2% surge in other revenue streams. These figures highlight Fox's ability to capitalize on key drivers such as the Super Bowl LIX broadcast, political advertising cycles, and the growth of its ad-supported streaming platform, Tubi.

Equally compelling is the improvement in profitability. Operating expenses declined by 1.4% year-over-year to $1.75 billion, reducing costs as a percentage of revenue by 420 basis points. Adjusted EBITDA rose 21.5% to $939 million, with margins expanding to 28.6%-a testament to operational efficiency. For the full fiscal year 2025, Fox reported record revenue of $16 billion and adjusted EBITDA of $3.6 billion, alongside $3 billion in free cash flow. These metrics suggest a company that is not only growing its top line but also strengthening its bottom line.

Strategic investments further reinforce this narrative. The launch of FOX One, a direct-to-consumer streaming service, and the acquisition of Red Seat Ventures to bolster its podcast portfolio demonstrate Fox's commitment to diversifying revenue streams. Meanwhile, initiatives like OneFOX, an AI-driven platform, position the company to leverage technological advancements in content delivery. Shareholder returns have also been prioritized, with a $5 billion increase in the share repurchase program and a dividend hike to $0.28 per share.

Technical Indicators: A Bullish Setup

From a technical perspective, Fox's stock appears to be in a strong position. Moving averages signal a "Buy" for long-term investors. The Relative Strength Index of 59.101 falls within the neutral-to-buy range, indicating that the stock is not overbought and has room to rise. Meanwhile, the MACD indicator shows a positive crossover, reinforcing the bullish trend.

Volume patterns also support the case for continued growth. While the stock initially dipped 3.16% post-earnings, it rebounded with a 1.79% pre-market gain, suggesting resilience in investor sentiment. Over the past month, Fox's stock has traded in a relatively stable range, closing at $73.82 on December 29-a 11% increase from its December 1 level. This stability, coupled with reduced volatility as indicated by the ATR metric, suggests that the market is digesting the company's progress without excessive short-term noise.

Risks and Mixed Signals

Despite these positives, risks remain. The post-earnings dip, though modest, highlights the market's sensitivity to short-term volatility. Analyst ratings are mixed, with 13 "Buy" ratings, 21 "Hold" ratings, and 3 "Sell" ratings as of April 2025, reflecting divergent views on Fox's long-term trajectory. Additionally, the media landscape remains competitive, with streaming services and AI-driven content platforms intensifying pressure on traditional revenue models.

However, Fox's strong balance sheet- including $3 billion in free cash flow and a net income of $2.3 billion for fiscal 2025-provides a buffer against these challenges. The company's focus on cost discipline and shareholder returns, combined with its strategic investments in digital expansion, positions it to navigate uncertainties while maintaining growth momentum.

Conclusion: A Compelling Case for Sustained Growth

Fox Corporation's Q4 2025 results and technical indicators paint a picture of a company that is not only rebounding from past challenges but also laying the groundwork for long-term success. The combination of strong earnings growth, margin expansion, and strategic reinvention has been mirrored by favorable technical setups, including bullish moving averages and a balanced RSI. While risks such as market volatility and competitive pressures persist, Fox's financial strength and proactive strategy suggest that its recent outperformance is more than a temporary spike-it is a sign of a company poised for sustained growth in 2026 and beyond.