Durability on Repeat

Research evidence excerpt

Durability on Repeat

across the portfolio (sports, news, entertainment, Tubi), improving local station trends, and a

healthy upfront setup ahead of this evening’s presentations. Category strength appears broad,

with pharma, tech, and finance called out, while political revenue is beginning to layer in ahead

of the midterms, with management citing third-party expectations for an ~$11bn midterm political

ad market and record off-year political revenue already.

FOX News ad trends remain robust; still long-term upside to pricing. FOX News achieved

its highest fiscal 3Q ad revenue ever driven by strong pricing, continued advertiser demand, and

solid audience share despite ratings declines from tough inauguration-related comps.

Management highlighted that FOX News finished the quarter as the most-watched cable network

in both total day and primetime, and April showed y/y total audience growth, with FOX News

ranking second in Monday-Friday primetime across all television, behind only one broadcast

network. Management also noted that FOX News has added 200 new premium advertisers in

FY26, on top of the 350 added in FY25, helping drive national pricing/CPMs up more than 45%.

FOXA continues to see a meaningful gap in CPMs between FOX News and broadcast networks,

suggesting room for continued monetization upside if engagement and advertiser demand

remain durable. Lastly, FOX News Digital was said to have also delivered strong results in the

quarter, with both YouTube and social media views up DD y/y.

Distribution was better than expected again, with affiliate pricing, stable Pay TV sub

declines, contributions from FOX One, and skinny bundles supporting a more

constructive forward setup. Distribution revenue was +3.3% y/y to $2.11bn vs. consensus at -

1.6%.