Disney Stream and Parks Shine in Q4, but TV Networks and Movies Fall Short

Disney had a mixed performance in the fourth quarter, with weaker results from its television networks and some films, offset by strength in its streaming business and theme parks. The company is currently working on a new licensing deal with YouTube after its content disappeared from YouTube TV, leaving subscribers without access to major networks like ESPN and ABC.

For the three months ended Sept. 25, Disney earned $1.31 billion, or 73 cents per share, compared to $460 million, or 25 cents per share, in the same period the previous year. After removing one-time charges and costs, earnings were $1.11 per share, surpassing analysts’ predictions of $1.03 per share.

Although revenue fell short of Wall Street’s estimates at $22.46 billion, Disney’s streaming service and theme parks showed positive results. Revenue for the Disney Entertainment segment, which includes movie studios and streaming services, declined by 6%, while revenue for its Experiences division, such as theme parks, increased by 6%.

The company reported a decrease in operating income from linear networks, with a 21% drop in operating income and a 16% decrease in revenue. This decline was attributed to the Star India transaction impacting year-over-year results. Additionally, Disney’s movie distribution results were weaker compared to the same period last year, with films like “The Fantastic Four: First Steps” and “The Roses” being released during the quarter.

On a brighter note, Disney’s direct-to-consumer business, which includes Disney+ and Hulu, saw a quarterly operating income increase from $253 million to $352 million year-over-year. Disney+ subscribers increased by 3% domestically and 4% internationally, bringing the total paid subscribers to 132 million.

Despite a brief increase in cancellations due to the temporary cancellation of “Jimmy Kimmel Live!” on ABC, Disney+ and Hulu subscriptions saw an overall increase of 12.4 million from the previous quarter. Disney remains optimistic about double-digit growth in adjusted earnings per share for fiscal 2026 and fiscal 2027.

While Disney’s stock dropped by 5% before the market opened on Thursday, the company remains focused on continuing growth and innovation in its streaming services and theme park experiences.