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Nexstar Q3 Revenue Nearly Doubles Due To Political Ad Boom; Execs Talk Tegna Appeal, CW Profit Outlook
Nexstar’s third-quarter revenue rose by three-quarters, from $1.2 billion to $2.1 billion, as political advertising surged. The record haul highlights the importance of election spending to local television, while the company also faces uncertainty over its blocked Tegna merger and the future profitability of The CW.
Political advertising brought in $1.1 billion during 2026, 31% more than in the 2022 midterm cycle; the figure includes Tegna’s results, though a court order has prevented Nexstar from integrating the business. An appeals court is due to hear the merger case on 17 November, with a decision expected in early 2027. The CW, whose ratings rose 9% in the quarter, drew nearly 2 million viewers for a college football game and is still forecast to make its first quarterly profit in the fourth quarter, but executives said full-year profitability in 2027 is uncertain.
In short
- Nexstar revenue reached $2.1 billion in the third quarter.
- Political ads generated a record $1.1 billion in 2026.
- The CW expects its first quarterly profit in the fourth quarter.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The surge in political advertising shows how election spending can sustain local television, helping fund newsrooms and reach large audiences across communities. Supporters of the Tegna merger may argue that combining operations would create efficiencies and strengthen Nexstar’s ability to compete, while The CW’s audience growth and projected quarterly profit offer grounds for cautious optimism.
The case against
Heavy reliance on election advertising makes revenue unusually cyclical, so a record quarter may not indicate durable financial strength once campaign spending falls. Those opposing the Tegna merger may argue that further consolidation risks reducing competition and local choice; uncertainty over The CW’s full-year profitability also cautions against treating recent ratings gains as proof of a lasting turnaround.
Explained simply
Nexstar is a major US broadcaster that owns local television stations, which earn money from advertising and news programming. The CW is a national television network in which Nexstar has a controlling stake. Political campaigns often buy local television adverts, especially around elections, making election years an important source of income for broadcasters.
Tegna is another large US broadcaster. Nexstar agreed to buy it, but a court order has stopped the companies combining while the legal challenge is considered; an appeals court hearing is scheduled for November. The outcome matters because it will determine whether Nexstar can bring Tegna’s stations into its business, while the CW’s path to steady profits remains a separate concern.
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