Fox A 2025 Q3 Earnings Revenue Surges 26.8% Despite Decline in Net Income

Fox A (FOXA) reported its fiscal 2025 Q3 earnings on May 12th, 2025. Fox A exceeded Wall Street expectations for revenue, driven by strong advertising revenue, particularly from the Super Bowl LIX. However, the company faced a decline in earnings per share (EPS) and net income compared to the previous year. Despite the drop in net income, Fox A's strategic investments in content and technology are expected to drive future growth, in line with its guidance.

Revenue
In the third fiscal quarter of 2025, Fox A witnessed a remarkable 26.8% increase in total revenue, reaching $4.37 billion, compared to $3.45 billion in the same quarter of the previous year. The Cable Network Programming segment generated a revenue of $1.64 billion, while Affiliate fees contributed $1.14 billion. Advertising revenue stood at $372 million, complemented by $129 million from other sources. The Television segment achieved revenue of $2.70 billion, with advertising bringing in $1.66 billion and affiliate fees adding $870 million. Other revenue sources amounted to $170 million, while Corporate and Other contributed $58 million. Eliminations accounted for a negative $27 million, culminating in total revenues of $4.37 billion.

Earnings/Net Income
Fox A's earnings per share (EPS) experienced a significant decline, plummeting 46.1% to $0.76 in 2025 Q3 from $1.41 in 2024 Q3. Concurrently, the company's net income dropped to $354 million in 2025 Q3, marking a 49.7% decrease from $704 million reported in 2024 Q3. This suggests a challenging quarter for the company.

Price Action
The stock price of Fox A has edged down 2.35% during the latest trading day, has climbed 6.41% during the most recent full trading week, and has edged up 1.77% month-to-date.

Post Earnings Price Action Review
The strategy of purchasing FOXA shares when revenues beat expectations and holding for 30 days yielded a 7.49% return, yet it fell short of the benchmark by 14.61%. This approach faced a maximum drawdown of -32.82% and a Sharpe ratio of 0.10, illustrating a challenging risk-return profile. The substantial drawdown and low Sharpe ratio underscore the necessity of robust risk management in navigating such volatile scenarios. Investors should weigh the potential rewards against the inherent risks before employing this strategy, as the market conditions surrounding Fox A can fluctuate significantly, affecting the overall returns. Therefore, careful consideration and strategic planning are crucial for optimizing outcomes in light of the company's financial performance and market dynamics.

CEO Commentary
“Our strong fiscal third quarter underscored the central role FOX plays in informing and entertaining America, and our financial performance, highlighted by record free cash flow, once again illustrates the strength of the FOX platform,” said Lachlan Murdoch, Executive Chair and Chief Executive Officer. He noted that FOX's significant advertising revenue increase was driven by Super Bowl LIX and digital growth from Tubi, emphasizing confidence in the company's best-in-class assets, deliberate strategy, and robust balance sheet to drive long-term value for shareholders.

Guidance
The company expresses strong confidence in its strategic positioning, indicating that it expects to leverage its market-leading assets to continue driving revenue growth and enhance shareholder value. FOX anticipates sustained engagement with audiences and advertisers, bolstered by ongoing investments in content and technology.

Additional News
Fox Corporation is set to make waves in the streaming industry with the announcement of its new direct-to-consumer streaming service named 'Fox One,' scheduled for launch before the NFL season. The service will consolidate all of Fox's premium content across news, sports, and entertainment into one dynamic platform. Additionally, Fox Corp has purchased Red Seat Ventures, a digital media company, to tap into the podcast market, reuniting with former Fox News stars Megyn Kelly and Tucker Carlson. This acquisition aims to attract younger audiences and capitalize on shifting content consumption trends. Meanwhile, the company has appointed Pete Distad, a former Apple TV+ executive, to lead its new subscription streaming platform, further strengthening its position in the competitive streaming landscape.