Disney (DIS) earnings Q4 2025

Walt Disney World, located in Orlando, Florida, is a iconic destination that attracts millions of visitors each year. The Magic Kingdom Park, in particular, is a favorite among tourists, with its enchanting Cinderella’s Castle and various themed attractions. However, the company’s latest earnings report has shed light on the challenges faced by its entertainment business.

Disney recently reported its fiscal fourth-quarter earnings, which topped analyst expectations for earnings but fell short on revenue. The company’s entertainment business was weighed down by its TV networks and a lackluster theatrical film slate, resulting in a 6% decline in revenue for the entertainment unit. This decline was partially offset by the growth of its streaming services, which saw a 39% increase in operating income.

Streaming Services on the Rise

Disney’s streaming growth can be attributed to the increasing popularity of its services, including Disney+ and Hulu. The company has seen a significant increase in subscribers, with Disney+ adding 3.8 million paid subscribers and Hulu reaching 64.1 million customers. The integration of Hulu into the Disney+ app has also contributed to the growth of the streaming services.

The company’s carriage deal with Charter Communications has also played a significant role in the growth of its streaming services. The deal has given Charter’s customers access to ad-supported Hulu, resulting in a significant increase in subscribers. Additionally, the launch of the ESPN direct-to-consumer app has helped to stem customer losses and boost engagement with ESPN.

Experiences Segment Shows Promise

Disney’s experiences segment, which includes theme parks, resorts, and cruises, as well as consumer products, has shown significant growth. Revenue for the segment rose 6% to $8.77 billion, with operating income increasing by 13% to $1.88 billion. The company’s theme parks and resorts have continued to attract visitors, with bookings up 3% and spending per person increasing by 5%.

The growth of the experiences segment can be attributed to the company’s efforts to enhance the overall guest experience. The expansion of its cruise business, with the addition of new ships, has also contributed to the growth of the segment. Disney’s ability to balance its entertainment and experiences businesses will be crucial in driving future growth and success.

Financial Performance

Disney’s net income for the quarter was $1.44 billion, or 73 cents a share, more than double the $564 million, or 25 cents per share, reported in the same period last year. The company’s revenue for the quarter was $22.46 billion, slightly less than the same quarter last year. Adjusting for one-time items, Disney reported earnings per share of $1.11, exceeding analyst expectations.

The company’s plans to boost its dividend and double its share buyback plan for fiscal 2026 are expected to positively impact its financial performance. However, the ongoing carriage dispute with YouTube TV and the challenges faced by its TV networks and theatrical film slate will need to be addressed to ensure long-term growth and success.