Disney reported fiscal fourth-quarter earnings that exceeded Wall Street expectations for profit but fell short on revenue, reflecting continued pressure on its traditional TV networks and a sluggish theatrical slate. The stock fell more than seven percent on Thursday as investors weighed uneven performance across the company’s major divisions.
For the quarter ending September 27, Disney posted adjusted earnings of 1.11 dollars per share, topping the expected 1.05 dollars. Net income more than doubled from a year earlier, rising to 1.44 billion dollars. Revenue came in at 22.46 billion dollars, slightly below the 22.75 billion dollars analysts had forecast and roughly flat from last year. The company also announced plans to raise its dividend and double share buybacks for fiscal 2026.
Streaming growth accelerates as linear networks struggle
Disney’s entertainment division generated 10.21 billion dollars in revenue, a six percent decline from last year driven by weakness in linear TV and theatrical releases. The company’s networks, including ESPN and ABC, continue to feel the impact of cord-cutting, with advertising revenue also down due to reduced political spending and the company’s joint venture in India.
The ongoing carriage dispute with YouTube TV has further strained network performance. Disney executives said negotiations are continuing but warned they were prepared for a prolonged standoff. CEO Bob Iger urged a resolution that restores access for consumers, saying the company is “working tirelessly” to reach agreement.
Streaming remained the highlight of the quarter. Operating income in the streaming segment climbed 39 percent to 352 million dollars, supported by higher prices and stronger subscriber momentum. Iger said streaming delivered another quarter of profitability improvement, noting full-year operating income of 1.3 billion dollars, a dramatic turnaround from the 4 billion dollar loss three years ago.
The Disney+ service added 3.8 million subscribers, reaching 131.6 million globally, while Hulu accounted for 64.1 million. The company has been integrating Hulu into the Disney+ app after taking full control this year. Disney said this will be its final quarter reporting subscriber counts, shifting toward metrics more aligned with industry practices.
ESPN app rollout boosts engagement and advertising
Earlier this year Disney launched the ESPN direct-to-consumer app, which mirrors content on ESPN’s TV networks and ESPN+. The company said the new platform has brought in additional users and strengthened engagement among pay-TV customers who now have streaming access.
Advertising demand for the ESPN app has also been strong, Iger said, noting that more advertisers are shifting budgets toward the platform. Despite declining subscribers in the broader pay-TV bundle, sports content continues to attract stable viewership and high ad spending, helping offset cost pressures tied to programming and app development.
Disney said that 80 percent of new retail ESPN subscribers are bundled customers, reinforcing the company’s strategy of using combined offerings to drive engagement and retention across its portfolio.
Experiences and parks deliver steady revenue growth
Disney’s experiences division, which includes theme parks, cruises and consumer products, reported revenue of 8.77 billion dollars, a six percent increase from last year. Operating income rose thirteen percent to 1.88 billion dollars, supported by higher guest spending and stronger demand across parks and cruises.
Bookings for the fiscal first quarter were up three percent, and per-guest spending increased five percent, according to CFO Hugh Johnston. Disney said cruise demand remains robust even as the fleet expands, with new ships filling at pre-expansion rates.
Two new cruise ships, Disney Destiny and Disney Adventure, are set to join the fleet in the coming months, the latter marking Disney’s first vessel based in Asia. Executives said cruise margins are among the highest in the company due to strong demand and consistently high satisfaction scores.
Domestic park revenue rose six percent, while international parks grew ten percent, lifted by improved performance at Disneyland Paris. Johnston said the company had anticipated competitive pressure from Comcast’s Epic Universe in Florida but noted the new attraction appeared to be affecting rivals more than Disney.
