Fox's $5B Share Buyback and $16B Revenue Milestone Signal Strategic Turnaround and Strong Shareholder Value

Fox Corporation (FOX) has emerged as a standout performer in the media sector, driven by a $5 billion share buyback program and a record $16.3 billion in annual revenue for fiscal 2025. These moves signal a strategic shift toward shareholder value creation, with buybacks playing a pivotal role in boosting earnings per share (EPS) and market valuation. For investors, the question is whether Fox's aggressive capital return strategy outpaces even tech giants like Apple's $100 billion buyback program—and why this makes Fox a compelling short-term growth play.

Buybacks as a Catalyst for EPS Growth

Fox's 1-Year Share Buyback Ratio of 3.80%—ranked in the top 8% of its media peers—has directly driven EPS expansion. By reducing shares outstanding by 5.36% year-over-year (from 468.14 million to 450.54 million), the company has amplified earnings per share. For context, Fox's Q2 2025 adjusted EPS of $1.10 exceeded estimates by 18%, while its trailing twelve months (TTM) EPS of $4.02 reflects a 25.63% year-over-year increase. This EPS growth is not just a function of revenue but of disciplined capital allocation.

Fox's buybacks have also been strategically timed. With a stock price trading at a 52-week high of $55.00, the company has repurchased shares at a discount to intrinsic value, enhancing returns for remaining shareholders. The reduction in shares outstanding has a compounding effect: every dollar spent on buybacks directly increases EPS, as earnings are spread across fewer shares. For Fox, this has translated into a 13.84% projected compound annual growth rate (CAGR) in EPS through 2029, outpacing its modest 2.24% revenue CAGR.

Comparing Fox's Buyback to Apple's $100B Program

Apple's (AAPL) $100 billion buyback program, while massive in absolute terms, operates in a different context. With 14.99 billion shares outstanding as of August 2025, Apple's buybacks reduce its share count by a mere 0.58% year-over-year. This dilution effect is less impactful for EPS growth compared to Fox's 5.36% reduction. Apple's Q3 2025 EPS growth of 12% was driven by both buybacks and revenue gains, but its scale means each repurchase has a smaller per-share effect.

Fox's smaller market cap ($28.08 billion) and higher buyback ratio create a more direct link between capital returns and EPS. For every 1% reduction in shares, Fox's EPS increases by ~1.1%, versus ~0.1% for Apple. This makes Fox's buyback strategy more potent for short-term value creation, particularly in a sector where media companies often trade at a discount to earnings.

Why Fox is a Short-Term Growth Play

Fox's strategic focus on buybacks is part of a broader turnaround. The company's revenue surge to $16.3 billion in fiscal 2025—driven by political advertising, sports events like the Super Bowl, and digital growth via Tubi—has provided the cash flow to fund buybacks without sacrificing reinvestment. Its 87% EBITDA growth in the Television segment underscores operational strength, while a 1.06% dividend yield adds income for shareholders.

Critically, Fox's balance sheet is robust, with $5.35 billion in cash and a beta of 0.55, indicating lower volatility than the S&P 500. This stability allows the company to execute buybacks even in uncertain markets, unlike peers with higher leverage. Meanwhile, Apple's buybacks, while impressive, are part of a long-term capital return strategy that prioritizes steady, incremental growth over explosive short-term gains.

Investment Implications

For investors seeking near-term outperformance, Fox's combination of aggressive buybacks, revenue diversification, and strong balance sheet metrics makes it a compelling media-sector play. The company's 3.80% buyback ratio and 13.84% EPS CAGR through 2029 suggest continued upside, particularly if share repurchases continue at a similar pace.

However, risks remain. Fox's reliance on political advertising and sports events introduces cyclicality, and its reduced buyback budget in FY 2024 (from $2 billion to $1 billion) signals a shift toward reinvestment in digital platforms like Fox One. Investors should monitor the balance between buybacks and long-term innovation.

Conclusion

Fox's $5 billion buyback and $16 billion revenue milestone are not just numbers—they represent a strategic pivot toward shareholder value. While Apple's $100 billion program is a testament to its financial might, Fox's higher buyback ratio and smaller scale create a more direct path to EPS growth. For investors with a 12–24 month horizon, Fox offers a unique blend of capital appreciation and sector-specific tailwinds, making it a standout in the media landscape.