Fox Corp (NASDAQ:FOX) Class A shares climbed 4.1% in pre-market trading to $68.14 after JPMorgan upgraded the media company from Neutral to Overweight and increased its price target to $82 from $70.
The brokerage highlighted Fox’s strong underlying performance, favourable economics from the FIFA World Cup and expectations surrounding the company’s pending acquisition of Roku as reasons for its more optimistic stance.
JPMorgan also pointed to an encouraging political advertising environment and improving distribution revenue, strengthening its expectations for Fox’s earnings performance heading into fiscal 2027.
Strong quarterly results support bullish view
The upgrade arrived around a week after Fox reported a stronger-than-expected fiscal fourth quarter.
Adjusted earnings per share came in at $1.79, comfortably exceeding the analyst consensus of $1.45. Revenue increased 28% year over year to $4.21 billion, also surpassing market forecasts.
The results reinforced expectations that Fox’s combination of live sports, advertising and digital streaming could support stronger earnings growth over the coming years.
Following the quarterly performance, JPMorgan increased its fiscal 2027 and 2028 EBITDA forecasts by between 7% and 9%.
FIFA World Cup drives advertising surge
Advertising was one of the strongest areas of Fox’s quarterly performance, with revenue from the segment jumping 78%.
The increase was driven largely by coverage of the FIFA Men’s World Cup, highlighting the value of major live sporting events to Fox’s advertising business.
JPMorgan identified the economics associated with the tournament as an important factor supporting its upgraded outlook, alongside expectations for a favourable political advertising cycle.
The performance illustrates Fox’s ability to use premium live programming to attract large audiences and command stronger advertising demand.
Tubi reaches record audience
Fox’s streaming platform Tubi also delivered significant growth, reaching a record 110 million monthly active users.
The service recorded its strongest quarterly revenue growth to date, adding another source of momentum beyond Fox’s traditional television operations.
Tubi’s expanding audience strengthens Fox’s presence in ad-supported streaming and provides the group with additional opportunities to monetise viewers as consumer habits continue shifting towards digital platforms.
Combined with its established broadcast assets, the streaming business is becoming an increasingly important component of Fox’s longer-term growth strategy.
Roku acquisition adds to strategic expectations
JPMorgan also highlighted the anticipated benefits from Fox’s pending acquisition of Roku as part of its more constructive investment view.
The transaction could further expand Fox’s position across digital distribution and streaming, complementing the growth already being generated by Tubi.
Expectations surrounding the deal, combined with stronger advertising and distribution trends, contributed to the brokerage’s decision to raise its earnings forecasts and price target.
Fox rally outpaces wider market
The broader U.S. market provided a relatively stable backdrop, with the S&P 500 gaining 0.1% and the Nasdaq rising 0.2% in pre-market trading.
Fox’s 4.1% advance was substantially stronger, indicating that the move was primarily driven by the JPMorgan upgrade and company-specific developments rather than broader market momentum.
Other major media and streaming companies, including Walt Disney and Netflix, did not experience comparable gains.
The latest rally therefore builds on the positive sentiment created by Fox’s earnings beat, with investors increasingly focused on the company’s ability to monetise major sporting events, expand Tubi and capture potential longer-term benefits from the Roku transaction.