Total revenue reached $5.18 billion, up 2 % year‑over‑year and beating the consensus estimate of $5.05 billion by $0.13 billion. The lift was driven by a 5 % increase in Cable Network Programming revenue, which rose to $2.28 billion thanks to higher distribution fees and stronger advertising rates on news and sports properties, while the Television segment – which includes the broadcast network, local stations and Tubi – saw a modest decline to $2.94 billion, reflecting competitive pressure in the streaming space.
Net income attributable to stockholders fell to $247 million from $373 million a year earlier, a decline driven by higher amortization of sports‑programming rights and increased digital‑marketing spend. Adjusted net income, however, rose to $360 million from $442 million YoY, supported by stronger advertising demand in news and sports and a 27 % jump in Tubi viewer minutes that helped offset the year‑over‑year decline in profitability.
Adjusted EBITDA contracted to $692 million from $781 million, an 11 % decline. The drop is largely attributable to a $120 million increase in amortization of sports rights and a $90 million rise in digital‑marketing costs, which together offset the modest revenue growth and eroded margin expansion.
Management reiterated guidance for the remainder of fiscal 2026, maintaining expectations for continued revenue growth and margin expansion. The company highlighted its pricing power in news and sports and its investment in Tubi, which achieved EBITDA profitability for the second consecutive quarter, underscoring the strategic importance of the ad‑supported streaming platform.
CEO Lachlan Murdoch said the quarter demonstrated “robust results driven by broad‑based contributions across the portfolio, including notable strength in advertising.” CFO Steve Tomsic noted that growth‑driven spend on digital initiatives and higher production costs were the main drivers of the year‑over‑year decline in profitability.
Despite the earnings beat, the stock closed down 3.22 % on the day, reflecting investor focus on the year‑over‑year decline in net income and adjusted EBITDA and the higher expense base that could pressure margins in the near term.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.