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Disney Beats Profit Target but Misses Sales as Streaming and Parks Grow

The company is refocusing investors on profitability by ending public streaming subscriber counts next quarter.

Overview

  • Disney reported Q4 revenue of $22.46 billion, below estimates, and adjusted EPS of $1.11, topping forecasts.
  • Disney+ and Hulu added about 12.4–12.5 million subscribers to reach 196 million combined as direct-to-consumer operating income rose 39% to $352 million; this was the final quarter Disney will report streaming subscriber and ARPU metrics.
  • Parks and Experiences revenue rose 6% with operating income of $1.88 billion in Q4, helping deliver roughly $10 billion in full-year operating income for the segment.
  • The board raised the annual dividend to $1.50 per share and doubled fiscal 2026 share repurchases to $7 billion, as Disney reiterated double-digit adjusted EPS growth targets for 2026 and 2027.
  • Linear TV continued to weaken, with domestic network revenue down about 16% and operating income down 21% year over year, and the YouTube TV blackout began after the quarter and remains unresolved.