Disney reported roughly flat revenue of $22.46 billion in its fiscal fourth quarter—missing Wall Street expectations—while total segment operating income fell 5% to $3.48 billion, driven by declines in TV networks and movie studios, the company said Thursday.
Parks and streaming businesses, viewed as future growth drivers, posted gains: Experiences (including parks) saw operating income rise 13% to $1.88 billion—accounting for more than half of total profit—while direct-to-consumer income jumped 39% to $352 million, nearly matching the $391 million from linear networks, which dropped 21%.
To revive its stock—down about 3% in premarket trading and stuck between $80 and $125 since early 2022 after peaking near $200 in 2021—Disney will double share repurchases to $7 billion in the new fiscal year and boost its dividend 50% to $1.50 a share.
The company reiterated guidance for double-digit adjusted EPS growth in fiscal 2026 and 2027, with streaming profitability rising to 10% this year from about 5% in 2025.
Challenges persist, including a nearly two-week dispute with YouTube TV that removed ESPN and other Disney networks, and a brief Jimmy Kimmel suspension that doubled Disney+ and Hulu cancellations in September, per Antenna analytics (no cancellation data was disclosed in results).
Box office revenue fell as Marvel’s “The Fantastic Four: First Steps” underperformed compared to 2024’s “Deadpool & Wolverine.”Disney is investing $60 billion over 10 years in parks and experiences, including new attractions, a major Disneyland Paris expansion, and doubling its cruise fleet to 13 ships.