Headline: Disney Stock Sinks as Linear TV Weighs on Results, While Streaming and Parks Deliver
Disney shares fell 8.8% in early trading, hitting their lowest level since May, after the company posted mixed fiscal Q4 2025 results. The entertainment giant beat on adjusted earnings but missed revenue expectations, with weak cable and linear TV trends overshadowing strong momentum in streaming and steady gains across parks, resorts, and cruises.
Adjusted EPS came in at $1.11, ahead of estimates, while revenue was flat year over year at $22.5 billion, just shy of the Street’s view. Direct-to-consumer continued to be the standout: streaming profit jumped 39% to $352 million, and Disney+ and Hulu added 12.5 million subscribers, bringing the combined base to roughly 196 million. Management reiterated that streaming is becoming a core growth driver and signaled confidence in further expansion into fiscal 2026.
Parks & Experiences remained robust, with operating income up 13% to $1.88 billion, supported by higher cruise passenger days and solid performance at Disneyland Paris—an encouraging read-through for consumer demand. However, the Entertainment segment struggled, as operating income fell by more than a third to $691 million amid a softer film slate. Traditional TV profits declined 21% to $391 million, and ESPN also weakened, underscoring the ongoing pressure on linear networks. To support shareholder returns, Disney raised its dividend by 50% to $1.50 and continued share repurchases.
Key Points: – Shares fell 8.8% after fiscal Q4 2025 results, reaching the lowest level since May. – Adjusted EPS: $1.11 (beat); Revenue: $22.5B, flat y/y and below expectations. – Streaming profit up 39% to $352M; Disney+ and Hulu added 12.5M subs to about 196M total. – Parks & Experiences operating income rose 13% to $1.88B on strong cruises and Disneyland Paris. – Entertainment operating income dropped to $691M; traditional TV profit down 21% to $391M; ESPN also declined. – Dividend increased 50% to $1.50, with ongoing share buybacks.
