Cable news and media network Fox (NASDAQ: FOXA) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 28.1% year on year to $4.21 billion. Its non-GAAP profit of $1.79 per share was 29.3% above analysts’ consensus estimates.
Is now the time to buy FOX? Find out by accessing our full research report, it’s free.
FOX (FOXA) Q2 CY2026 Highlights:
- Revenue: $4.21 billion vs analyst estimates of $3.65 billion (28.1% year-on-year growth, 15.5% beat)
- Adjusted EPS: $1.79 vs analyst estimates of $1.38 (29.3% beat)
- Adjusted EBITDA: $1.20 billion vs analyst estimates of $1.00 billion (28.4% margin, 19.4% beat)
- Operating Margin: 28.4%, up from 25.4% in the same quarter last year
- Free Cash Flow Margin: 17.2%, down from 42.4% in the same quarter last year
- Market Capitalization: $23.21 billion
Company Overview
Founded in 1915, Fox (NASDAQ: FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, FOX’s 5.8% annualized revenue growth over the last five years was weak. This fell short of our benchmark for the consumer discretionary sector and is a rough starting point for our analysis.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. FOX’s annualized revenue growth of 10.7% over the last two years is above its five-year trend, which is encouraging. 
FOX also breaks out the revenue for its most important segments, Advertising and Affiliate, which are 45.5% and 48.3% of revenue. Over the last two years, FOX’s Advertising revenue (marketing services) averaged 21.9% year-on-year growth while its Affiliate revenue (licensing and retransmission fees) was flat. 
This quarter, FOX reported robust year-on-year revenue growth of 28.1%, and its $4.21 billion of revenue topped Wall Street estimates by 15.5%.
Looking ahead, sell-side analysts expect revenue to grow 1.4% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will see some demand headwinds.
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Operating Margin
FOX’s operating margin has risen over the last 12 months and averaged 20.5% over the last two years. The company’s higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports lousy profitability for a consumer discretionary business.
This quarter, FOX generated an operating margin profit margin of 28.4%, up 2.9 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
FOX’s EPS grew at 13.6% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 5.8% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.
In Q2, FOX reported adjusted EPS of $1.79, up from $1.27 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects FOX’s full-year EPS to grow 3.9% from $5.44 to $5.65.
Key Takeaways from FOX’s Q2 Results
We were impressed by how significantly FOX blew past analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 1.5% to $59.54 immediately after reporting.
Sure, FOX had a solid quarter, but if we look at the bigger picture, is this stock a buy? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
