Fox Corp Reports Q3 Net Income Down 51% Due to Investment Losses, Boosts Share Buyback to $12B
FOXA sits 30% above its 52-week low of $50.03 on light trading volume (0.1× avg).
Summary
Fox Corp's Q3 net income declined by 51% primarily due to investment losses, though operational Adjusted EBITDA increased. The company also significantly expanded its share repurchase program to $12 billion, with $1.9 billion already executed.
Key Events · Earnings and Guidance · FOXA
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Q3 Net Income Decline
Net income attributable to stockholders decreased 51% to $166 million for the three months ended March 31, 2026, and 36% to $994 million for the nine months, primarily due to non-operating investment losses.
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Operational Adjusted EBITDA Increase
Adjusted EBITDA, a measure of operational performance, increased 11% for the three months to $954 million and 1% for the nine months to $2.711 billion, driven by the Cable Network Programming and Television segments.
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Expanded Share Repurchase Program
The Board authorized an additional $5 billion for the stock repurchase program, bringing the total authorization to $12 billion. The company repurchased approximately 31 million shares for $1.9 billion during the nine months ended March 31, 2026.
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Smartmatic Lawsuit Update
The $2.7 billion defamation lawsuit by Smartmatic USA Corp. is ongoing, with summary judgment motions argued in December 2025 and no trial date set until late 2026 at the earliest. The company continues to believe the claims are without merit.
Analysis · FOXA · Technology
Fox Corp's third-quarter net income saw a significant decline, primarily driven by non-operating investment losses rather than core business performance. Despite this, the company demonstrated operational resilience with an increase in Adjusted EBITDA. The substantial expansion of its share repurchase program, with $1.9 billion already executed, signals a strong commitment to returning capital to shareholders. The ongoing $2.7 billion Smartmatic lawsuit remains a material contingent liability, though the company continues to dispute its merit. While the GAAP net income decline was previously indicated in an 8-K filing on the same day, this 10-Q provides the full, detailed financial context and other material updates.
At the time of this filing, FOXA was trading at $65.21 on NASDAQ in the Technology sector, with a market capitalization of approximately $26.3B. The 52-week trading range was $50.03 to $76.39. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.