Goldman Sachs Cuts Fox Corporation Price Target to $80 Despite 74.5% EPS Beat
Goldman Sachs maintained its Buy rating on Fox Corporation while cutting price target from $87 to $80, signaling confidence in its outlook. Fox reported Q2 EPS of $0.82, a 74.5% surprise, and revenue of $5.18 billion, up 2.5% year-over-year on a 5% rise in cable network distribution and increased advertising.
1. Goldman Sachs Maintains Buy Rating, Lowers Price Target
On February 4, 2026, Goldman Sachs reaffirmed its Buy rating on FOXA while reducing the 12-month price target from $87 to $80, implying an 18.12% potential upside. Analyst Michael Ng cited confidence in Fox’s diversified media portfolio and long-term cash flow generation despite near-term advertising headwinds. The adjustment reflects a cautious view on political ad spending this election year balanced against the company’s strong distribution agreements and digital growth initiatives.
2. Quarterly Earnings Outperform Consensus Expectations
Fox Corporation reported fiscal second-quarter earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.47 by 74.47%. While this represented a decline from the $0.96 per share posted in the same period last year, it marked the second consecutive quarter of significant upside versus analyst forecasts. In the prior quarter, Fox delivered $1.51 per share against an expected $1.06, underscoring consistent operational discipline and cost management across content and distribution segments.
3. Revenue Rises 2.5% Driven by Distribution and Cable Network Growth
Total revenues reached $5.18 billion for the quarter, up 2.47% year-over-year and 2.0% above consensus. Distribution revenues climbed 4.0%, fueled by renewed carriage agreements and higher affiliate fees in both domestic cable and international markets. The Cable Network Programming segment led growth with a 5% increase, reflecting strong demand for sports and lifestyle content. Advertising revenues edged up 1%, supported by elevated pricing for sports and news, digital ad inventory on Tubi, and additional MLB postseason inventory, which more than offset declines in political spending and modest ratings shifts.
4. Streaming Momentum and Shareholder Returns Highlight Strategic Priorities
Fox’s ad-supported streaming service, Tubi, delivered record quarterly revenue growth of 19%, reaching EBITDA profitability for the second straight quarter and expanding its library to over 60,000 titles. Executive Chair Lachlan Murdoch emphasized these results as validation of Fox’s digital pivot. The company has repurchased $1.8 billion of stock year-to-date and $8.4 billion since 2019, eliminating roughly 35% of shares outstanding. This aggressive capital return program, coupled with free cash flow generation, remains central to Fox’s strategy to enhance per-share value for investors.