Fox Corporation: Q4 Beats Expectations, Analyst Maintains Buy Rating Despite Future Investment Concerns

Fox Corporation reported a 6.5% YoY increase in total revenue and a 21% rise in EBITDA in Q4, exceeding expectations. Analyst Jessica Reif Ehrlich from Bank of America Securities reiterated a Buy rating and $65 price target, citing strong financial performance and strategic focus on sports and news. Despite concerns about future digital investments, Ehrlich maintains a positive outlook on Fox's potential, supported by a robust advertising environment and strong balance sheet.

Fox Corporation (FOXA) reported its fiscal 2025 Q4 earnings, delivering a 6.5% year-over-year (YoY) increase in total revenue to $3.29 billion, and a 21% rise in EBITDA to $939 million, both surpassing analyst expectations. The company's adjusted earnings per share (EPS) of $1.27 also significantly exceeded the consensus estimate of $0.99 [2].

The media giant's performance was driven by robust growth across its core segments. Advertising revenues grew 7%, primarily due to the continued digital growth of the Tubi AVOD service and stronger news ratings and pricing. Affiliate fee revenues increased 3%, with the Television segment growing 4% and the Cable Network Programming segment up 2% [2].

Executive Chair and Chief Executive Officer Lachlan Murdoch highlighted the company's broad-based strength and record financial results, noting the importance of strategic investments in digital growth assets. Fox also announced a $5 billion increase to its share repurchase authorization and raised its semi-annual dividend to $0.28 per share, reflecting management’s confidence in the company’s financial position and future prospects [2].

Analyst Jessica Reif Ehrlich from Bank of America Securities reiterated a Buy rating and a $65 price target, citing the company's strong financial performance and strategic focus on sports and news. Despite concerns about future digital investments, Ehrlich maintains a positive outlook on Fox's potential, supported by a robust advertising environment and a strong balance sheet [1].

Fox Corporation's Q4 2025 results underscore the company's consistent operational and financial momentum. The company's full-year 2025 revenues of $16.30 billion, a 17% increase from the prior year, and net income reaching $2.29 billion compared to $1.55 billion in fiscal 2024, further illustrate its strong performance [2].

References:
[1] https://www.ainvest.com/news/fox-2025-q4-earnings-strong-performance-net-income-surges-124-7-2508/
[2] https://www.investing.com/news/earnings/fox-beats-fourth-quarter-expectations-with-6-revenue-growth-93CH-4171511