The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Gray Television (NYSE: GTN) and the rest of the consumer discretionary - broadcasting stocks fared in Q2.
The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Broadcasting companies produce and distribute television and radio content, generating revenue primarily through advertising and, in some cases, retransmission fees (payments cable and satellite operators make to carry local channels). Tailwinds include resilient demand for live sports and event programming, which commands premium ad rates, and political advertising during election cycles. Headwinds, however, are substantial: secular cord-cutting (consumers canceling traditional pay-TV subscriptions) is shrinking linear audiences, digital platforms are capturing an increasing share of advertising budgets, and content production costs continue to rise. Regulatory scrutiny over media consolidation and spectrum ownership further constrains strategic flexibility.
The 5 consumer discretionary - broadcasting stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was 3.1% above.
In light of this news, share prices of the companies have held steady as they are up 1% on average since the latest earnings results.
Gray Television (NYSE: GTN)
Specializing in local media coverage, Gray Television (NYSE: GTN) is a broadcast company supplying digital media to various markets in the United States.
Gray Television reported revenues of $839 million, up 8.7% year on year. This print exceeded analysts’ expectations by 5.5%. Overall, it was an exceptional quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Hilton Howell, Jr., Executive Chairman and CEO, commented, “Our second quarter 2026 results are starting to reflect the benefits of our M&A activity. We met or exceeded our second quarter guidance across every metric except corporate expense, which was higher due to transaction-related costs, and our net leverage ratio improved during the quarter. We are particularly pleased with political advertising, which significantly exceeded our second quarter guidance, and is trending ahead of not only 2024 but also 2022 year-to-date levels. Our Net Retransmission Revenue returned to year-over-year growth even excluding the 2026 acquisitions, despite the blackout that ended on May 1."
Gray Television scored the highest guidance raise in the group. Unsurprisingly, the stock is up 7.9% since reporting and currently trades at $4.62.
Is now the time to buy Gray Television? Access our full analysis of the earnings results here, it’s free.
Best Q2: FOX (NASDAQ: FOXA)
Founded in 1915, Fox (NASDAQ: FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.
FOX reported revenues of $4.21 billion, up 28.1% year on year, outperforming analysts’ expectations by 15.5%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
FOX scored the biggest analyst estimate beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 7% since reporting. It currently trades at $62.79.
Is now the time to buy FOX? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: E.W. Scripps (NASDAQ: SSP)
Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ: SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.
E.W. Scripps reported revenues of $490.4 million, down 9.2% year on year, falling short of analysts’ expectations by 3.4%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
E.W. Scripps delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. As expected, the stock is down 7.1% since the results and currently trades at $2.74.
Read our full analysis of E.W. Scripps’s results here.
Paramount (NASDAQ: PSKY)
Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ: PSKY) is a major media conglomerate offering television, film production, and digital content across various global platforms.
Paramount reported revenues of $6.91 billion, flat year on year. This print topped analysts’ expectations by 0.7%. More broadly, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates but EPS in line with analysts’ estimates.
Paramount had the weakest guidance update in the group. The stock is up 22.4% since reporting and currently trades at $10.25.
Read our full, actionable report on Paramount here, it’s free.
iHeartMedia (NASDAQ: IHRT)
Occasionally featuring celebrity hosts like Ryan Seacrest on its shows, iHeartMedia (NASDAQ: IHRT) is a leading multimedia company renowned for its extensive network of radio stations, digital platforms, and live events across the globe.
iHeartMedia reported revenues of $977.2 million, up 4.7% year on year. This result surpassed analysts’ expectations by 0.9%. More broadly, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates and EBITDA guidance for next quarter missing analysts’ expectations significantly.
The stock is down 40.7% since reporting and currently trades at $2.20.
Read our full, actionable report on iHeartMedia here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
