Disney stock plunges as Q4 revenue misses estimates amid linear TV pressures

Disney (DIS) banal plunged much than 8% Thursday aft the institution reported mixed 4th fourth results connected Thursday arsenic continued declines successful its linear TV concern offset spot successful parks and streaming

Disney reported gross of $22.46 cardinal for the quarter, missing expert expectations of $22.83 cardinal and coming successful astir comparable to the year-earlier period.

A 6% gross driblet wrong the company's amusement division, which includes its streaming, TV, and theatrical businesses, contributed to the top-line miss. Linear web gross fell 16% twelvemonth implicit year, portion operating income dropped 21% arsenic cord-cutting accelerated and advertisement dollars continued to displacement toward streaming.

The results came successful the last agelong of CEO Bob Iger’s turnaround up of his planned departure adjacent year.

The institution said the diminution successful operating income was driven successful portion by the merchantability of its Star India assets, which contributed $84 cardinal to results a twelvemonth ago. Domestic linear networks besides came nether unit from little advertizing tied to weaker viewership and a $40 cardinal diminution successful governmental advertisement spending compared to the prior-year quarter.

Disney besides faced weaker theatrical comparisons successful the period, adding to the resistance connected wide Entertainment results.

Read more: Live sum of firm earnings

Adjusted net per stock (EPS) of $1.11 for the 4th came successful up of the $1.07 expected by analysts polled by Bloomberg. Earnings fell 3% from $1.14 a twelvemonth ago.

Still, for full-year 2025, the institution reported adjusted EPS of $5.93, a 19% year-over-year leap and up of some its ain guidance and Wall Street's $5.87 projection.

Disney said it expects fiscal 2026 to present double-digit adjusted EPS maturation from 2025. The institution besides expects to treble its stock repurchase people to $7 cardinal adjacent year.

Additionally, the institution announced a $0.50 summation successful its currency dividend to $1.50.

On the streaming front, Disney+ added 3.8 cardinal subscribers successful the quarter, up of the 2.4 cardinal that analysts polled by Bloomberg had expected.

The direct-to-consumer segment, which includes Disney+ and Hulu, posted a nett of $352 million, compared to $253 cardinal a twelvemonth ago. The institution continues to prioritize accordant profitability successful streaming amid the ongoing displacement distant from accepted pay-TV.

Disney is targeting astir $375 cardinal successful streaming profits for Q1 2026, with plans to merge Disney+ and Hulu adjacent year. In fiscal 2025, the institution achieved its people of securing $1.3 cardinal successful streaming operating income, reporting $1.33 cardinal for the afloat year.