It's a rough one in the Magic Kingdom today.
Shares of Disney are down 8.8% shortly after the open following today's earnings report. That sends them to the lowest level since May.
The numbers (fiscal Q4 2025)
Adjusted EPS: $1.11 vs 1.05 estimate
Revenue: $22.5B, flat y/y and just under the $22.75B street view.
Streaming / DTC (the bright spot)
Streaming profit +39% y/y to $352M.
Disney+ and Hulu added 12.5M subs, taking the combined base to about 196M.
Parks & Experiences (still strong)
Operating income at the “experiences” unit (parks, resorts, cruises) +13% y/y to $1.88B, driven partly by more cruise passenger days and Disneyland Paris.
This is a good sign for the economy/sconsumer
Entertainment / TV / ESPN (the problem child)
Entertainment division operating income down by more than a third to $691M as this year’s film slate couldn’t match last year’s hits.
Traditional TV profit -21% to $391M; ESPN also down.
Weak cable/linear trends are what pulled revenue under consensus and are the core bear argument on the stock and why shares are down so hard today. The good news is the dividend was hiked 50% to $1.50 and they're buying back shares.
There is a transition that's the bet you're making with Disney shares and it's one that consumers are making too as streaming wins versus cable. Top executives said that as Disney continues to establish Direct-to-Consumer as “a core driver of growth,”
“Looking ahead, we are positioned to continue to grow our streaming business in fiscal 2026,” said CEO Bob Iger.
