Gross margins have demonstrated significant instability, plummeting from a 43.4% peak in 2025Q4 to 37.6% in 2026Q3 due to the rising costs of sports broadcast rights.
| Sales/Revenue | 16.2B | 16.3B | 13.98B | 14.91B | 13.97B | 12.91B | 12.3B | 11.39B | 10.15B | 9.92B |
| Revenue Growth % | 0.6% | 16.6% | -6.26% | 6.72% | 8.25% | 4.93% | 8.03% | 12.17% | 2.34% | - |
| Cost of Goods Sold | 10.53B | 10.9B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 66.89% | - | - | - | - | - | - | - | - |
| Gross Profit | 5.67B | 5.4B | 13.98B | 14.91B | 13.97B | 12.91B | 12.3B | 11.39B | 10.15B | 9.92B |
| Gross Margin % | 34.99% | 33.11% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | -61.39% | -6.26% | 6.72% | 8.25% | 4.93% | 8.03% | 12.17% | 2.34% | - |
| Operating Expenses | 2.47B | 2.17B | 11.5B | 12.15B | 11.4B | 10.14B | 9.81B | 8.96B | 7.94B | 7.39B |
| OpEx % of Revenue | - | 13.3% | 82.27% | 81.47% | 81.58% | 78.58% | 79.7% | 78.65% | 78.18% | 74.45% |
| Selling, General & Admin | 2.32B | 2.17B | 2.02B | 2.05B | 1.92B | 1.81B | 1.74B | 1.42B | 1.26B | 1.12B |
| SG&A % of Revenue | - | 13.3% | 14.48% | 13.74% | 13.74% | 14% | 14.15% | 12.46% | 12.43% | 11.26% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 9.48B | 10.1B | 9.48B | 8.34B | 8.06B | 7.54B | 6.68B | 6.27B |
| Operating Income | 3.2B | 3.23B | 2.48B | 2.76B | 2.57B | 2.77B | 2.5B | 2.43B | 2.21B | 2.54B |
| Operating Margin % | 19.73% | 19.81% | 17.73% | 18.53% | 18.42% | 21.42% | 20.3% | 21.35% | 21.82% | 25.55% |
| Operating Income Growth % | - | 30.31% | -10.35% | 7.38% | -6.91% | 10.73% | 2.71% | 9.75% | -12.62% | - |
| EBITDA | 3.6B | 3.61B | 2.87B | 3.17B | 2.94B | 3.06B | 2.75B | 2.64B | 2.39B | 2.7B |
| EBITDA Margin % | 22.2% | 22.17% | 20.51% | 21.29% | 21.02% | 23.74% | 22.39% | 23.21% | 23.5% | 27.26% |
| EBITDA Growth % | 4.41% | 26.06% | -9.7% | 8.1% | -4.18% | 11.25% | 4.24% | 10.77% | -11.76% | - |
| D&A (Non-Cash Add-back) | 401M | 385M | 389M | 411M | 363M | 300M | 258M | 212M | 171M | 169M |
| EBIT | 2.69B | 3.46B | 2.51B | 2.08B | 2.07B | 3.31B | 1.83B | 2.43B | 2.21B | 2.26B |
| Net Interest Income | -234M | -227M | -216M | -218M | -371M | -391M | -334M | -162M | -43M | -23M |
| Interest Income | 120M | 176M | 189M | 131M | 6M | 4M | 35M | 41M | 0 | 0 |
| Interest Expense | 354M | 403M | 405M | 349M | 377M | 395M | 369M | 203M | 43M | 23M |
| Other Income/Expense | -880M | -168M | -374M | -1.03B | -880M | 153M | -1.03B | -207M | -45M | -294M |
| Pretax Income | 2.32B | 3.06B | 2.1B | 1.74B | 1.69B | 2.92B | 1.46B | 2.22B | 2.17B | 2.24B |
| Pretax Margin % | 14.3% | 18.78% | 15.05% | 11.64% | 12.12% | 22.6% | 11.9% | 19.53% | 21.37% | 22.59% |
| Income Tax | 566M | 768M | 550M | 483M | 461M | 717M | 402M | 581M | -58M | 832M |
| Effective Tax Rate % | 24.44% | 25.09% | 26.14% | 27.82% | 27.21% | 24.57% | 27.46% | 26.12% | -2.67% | 37.13% |
| Net Income | 1.71B | 2.26B | 1.5B | 1.24B | 1.21B | 2.15B | 999M | 1.59B | 2.19B | 1.37B |
| Net Margin % | 10.56% | 13.88% | 10.74% | 8.31% | 8.62% | 16.66% | 8.12% | 14% | 21.54% | 13.83% |
| Net Income Growth % | -8.26% | 50.77% | 21.15% | 2.82% | -43.95% | 115.22% | -37.37% | -27.07% | 59.4% | - |
| Net Income (Continuing) | 1.75B | 2.29B | 1.55B | 1.25B | 1.23B | 2.2B | 1.06B | 1.64B | 2.23B | 1.41B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 107M | 393M | 342M | 280M | 224M | 263M | 322M | 200M | 275M | 154M |
| EPS (Diluted) | 3.96 | 4.91 | 3.13 | 2.33 | 2.11 | 3.61 | 1.62 | 2.57 | 3.53 | 2.21 |
| EPS Growth % | -5.72% | 56.87% | 34.33% | 10.43% | -41.55% | 122.84% | -36.96% | -27.2% | 59.73% | - |
| EPS (Basic) | - | 4.97 | 3.14 | 2.34 | 2.13 | 3.64 | 1.63 | 2.57 | 3.53 | 2.21 |
| Diluted Shares Outstanding | 432M | 461M | 480M | 531M | 570M | 595M | 616M | 621M | 620M | 620M |
| Basic Shares Outstanding | 424M | 461M | 478M | 529M | 566M | 591M | 613M | 621M | 620M | 620M |
| Dividend Payout Ratio | - | 12.24% | 18.72% | 24.13% | 25.48% | 15.35% | 33.53% | 419.31% | 3.52% | 2.55% |
Sports rights cost inflation
As indicated by the most recent quarterly data, FOXA's revenue growth remains highly erratic, swinging from a 26.8% expansion in 2025Q3 to an 8.6% contraction in 2026Q3, largely reflecting the inherent volatility of major sporting event cycles and biennial political advertising spending patterns.
The top-line performance appears heavily tethered to the timing of high-profile sports broadcasts and election-related ad spend, which complicates organic growth assessment. Investors should monitor whether the company can maintain its revenue floor as the linear television ecosystem continues to face secular contraction pressures.
According to the provided financial statements, gross margins have demonstrated significant variance, plummeting to 22.9% in 2026Q2 from peaks exceeding 40% in prior periods, illustrating the heavy impact of escalating sports broadcast rights costs on the company's core profitability profile.
The wide swings in gross margin suggest that the company's profitability is highly sensitive to the timing of content amortization and the competitive bidding environment for live sports. This volatility implies that Fox may struggle to maintain consistent margin expansion if rights costs continue to outpace affiliate fee growth.
Based on reported figures, operating income has fluctuated significantly, reaching a low of $249 million in 2024Q2 before recovering to $801 million in 2026Q3, suggesting that management's ability to scale SG&A expenses is often outpaced by the inherent lumpiness of the company's revenue streams.
While SG&A expenses have remained relatively contained, the lack of consistent operating leverage indicates that the business model remains burdened by high fixed costs. The inability to consistently scale operating income alongside revenue suggests that the company's profitability is more a function of content cycles than operational efficiency.
Data from the last ten quarters reveals that net income margins have compressed to 4.2% in 2026Q3, down from 23.2% in 2025Q1, which may indicate that the company's reliance on traditional linear distribution is becoming increasingly unsustainable in a rapidly shifting media landscape.
Short-term earnings volatility, exacerbated by legal and content-related costs, warrants further investigation into the long-term viability of the current business model. The sharp decline in net margins suggests that the company may face significant headwinds if it cannot successfully transition its audience to digital-first platforms like Tubi.
Quick answers to the most common questions about buying FOXA stock.
For fiscal year 2025, Fox Corporation (FOXA) reported total revenue of $16.30B. This represents a 64.3% increase compared to $9.92B in 2017.
Fox Corporation (FOXA) is profitable, generating $2.26B in net income for the fiscal year ending 2025 with a net profit margin of 13.9%.
Fox Corporation (FOXA) reported an operating income of $3.23B, resulting in an operating profit margin of 19.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Fox Corporation (FOXA) generated $5.40B in gross profit for the year, representing a gross profit margin of 33.1%. This demonstrates the company's core pricing power and production efficiency.