Key Highlights

  • Revenues rose to USD 4,571 million from USD 3,738 million, an increase of about 22%.
  • Net income attributable to stockholders was USD 943 million, or USD 2.20 per diluted share, versus USD 1.32.
  • Operating expenses rose USD 242 million, or 11%, led by sports programming costs for the FIFA Men's World Cup.
  • The company agreed to acquire Roku for USD 96.00 in cash and 0.9693 Class A shares per Roku share.

Revenue and Earnings Surge

Fox Corporation (NASDAQ:FOX) reported fiscal first-quarter 2027 revenues of USD 4,571 million compared with USD 3,738 million for the quarter ended September 30, 2025. Income before income tax expense was USD 1,283 million versus USD 799 million, and Net Income was USD 957 million versus USD 609 million.

Net income attributable to stockholders was USD 943 million, or USD 2.20 per diluted share and USD 2.24 basic, versus USD 599 million, or USD 1.32 diluted and USD 1.34 basic. Diluted shares were 428 million versus 455 million. Income tax expense was USD 326 million versus USD 190 million, an effective rate of about 25.4% versus 23.8%, and net income attributable to noncontrolling interests was USD 14 million versus USD 10 million. Operating expenses were about 51.7% of Revenue versus 56.7%. Non-operating other, net was a loss of USD 143 million versus USD 125 million, and restructuring, Impairment and other corporate matters was an expense of USD 17 million versus a benefit of USD 8 million.

Cost Drivers

Operating expenses were USD 2,363 million versus USD 2,121 million, an increase of USD 242 million, or 11%. About USD 120 million came from higher sports programming rights amortization and production costs led by the FIFA Men's World Cup broadcast, partly offset by lower NFL costs because of game timing. The remaining increase of about USD 120 million reflected higher digital content costs, partly offset by lower entertainment programming rights amortization.

Selling, general and administrative expenses rose 3% to USD 567 million on higher employee costs, partly offset by lower legal costs. Depreciation and amortization rose 20% to USD 118 million, mainly from amortization of Federal Communications Commission licenses that began on July 1, 2026. Net interest expense rose 60% to USD 80 million on lower interest income from lower rates and lower average cash balances.

Roku Transaction and Financing

Under the Merger agreement, the company agreed to acquire Roku for USD 96.00 in cash plus 0.9693 shares of Class A common stock for each Roku Class A and Class B share, subject to adjustment in certain circumstances. In June 2026 it entered a commitment letter for USD 12.0 billion of senior unsecured bridge loans, of which USD 11.0 billion was available at September 30, and a USD 1.0 billion senior unsecured term Loan facility.

Net cash used in investing activities was USD 139 million versus USD 255 million, as lower investments were partly offset by higher capital expenditures. The company declared and paid a semi-annual Dividend of USD 0.29 per share on both Class A and Class B common stock on September 23, 2026.

Deal and Content Cost Checkpoints

Items to watch include the Roku transaction timeline and financing, sports programming costs through the fiscal year, amortization of FCC licenses and interest expense.