Shares of The Walt Disney Co. fell 7.8 percent Thursday as investors focused on weaker-than-expected revenue and ongoing struggles in its linear TV business, overlooking strong profit and subscriber growth.
The entertainment giant posted USD22.5 billion in revenue for the fourth quarter ending September 30, flat from a year earlier, while full-year revenue rose 3 percent to USD 94.4 billion. Income before taxes jumped to USD2.0 billion from USD0.9 billion, with full-year income climbing to USD12.0 billion from USD7.6 billion. Total segment operating income for the year increased 12 percent to USD17.6 billion.
Diluted earnings per share (EPS) rose to USD 0.73 from USD0.25, though adjusted EPS dipped 3 percent to USD1.11. For the year, diluted EPS surged to USD6.85, while adjusted EPS rose 19 percent to USD5.93.
“This was another year of great progress as we strengthened the company by leveraging the value of our creative and brand assets and continued to make meaningful progress in our direct-to-consumer businesses,” said CEO Robert A. Iger in a statement. “Our strategy, coupled with our complementary businesses and a strong balance sheet, enables us to continue investing in high-quality offerings and increasing returns to shareholders.”
Streaming remained a bright spot. Direct-to-Consumer revenue rose 8 percent, with operating income up USD99 million to USD352 million. Disney+ and Hulu subscriptions hit 196 million, including 132 million Disney+ users.
Linear TV dragged results, hurt by lower viewership, weaker political advertising, and the absence of last year’s Star India contribution.
Parks and Experiences again shone, posting record full-year operating income of USD10.0 billion and fourth-quarter earnings of USD1.9 billion. Disney warned that first-quarter fiscal 2026 may face headwinds from weaker theatrical releases, lower political advertising, and no Star India contribution.
