Local television’s election-year economics just showed their full force. Nexstar reported third-quarter revenue of $2.1 billion, up from $1.2 billion in the year-earlier quarter, as political campaigns poured money into its stations.
For all of 2026, political advertising reached $1.1 billion, a company record and 31% ahead of the previous midterm cycle in 2022. That total includes Tegna, the station group Nexstar acquired but cannot yet integrate after a federal judge blocked the merger.
The political windfall has a legal shadow
Nexstar’s appeal of the Tegna injunction moves to the U.S. Court of Appeals for the Ninth Circuit on Nov. 17. A decision is likely in early 2027. COO Mike Biard said the company is pressing the court to narrow the case, arguing plaintiffs failed to show enough concrete harm to state residents.
During the quarter Nexstar also reached a distribution deal with DirecTV without disclosing terms. DirecTV had joined state attorneys general in the Tegna lawsuit.
The CW’s small but real milestone
CW ratings rose 9% in the quarter, and the network recorded its largest live sports audience ever with the Florida State–New Mexico State football game on Aug. 30, drawing just under 2 million viewers.
Management reaffirmed that The CW should post its first profit in Q4. But CFO Lee Ann Gliha cautioned that the network would not be profitable for all of 2027. “It’s still on a positive trajectory, but it’s not where we want it to be, ultimately,” Biard said.
Sports now accounts for about half of CW programming, according to Gliha. Biard framed the sports push as proof of capability to rights holders: “As marquee rights become available over the next couple of years, we’ll certainly be in dialogue with everyone who’s got something to sell.”
What media planners should track
- Nov. 17: Ninth Circuit oral arguments on the Tegna appeal.
- Early 2027: expected appellate ruling; consolidation strategy hinges on this.
- Q4: The CW’s first projected profit.
- 2026 political ad haul: $1.1B, a benchmark for the next midterm.
The earnings underline a familiar pattern: broadcast TV remains an election-year powerhouse, but the non-political path—through sports, distribution deals and network profitability—will decide whether the gains stick.
Source: Deadline
