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Disney Leans on Streaming and Parks as Q4 Revenue Miss Sends Shares Lower

A sharper focus on profitability is reflected in higher shareholder payouts, alongside a move away from reporting subscriber totals.

Overview

  • Revenue was roughly flat at $22.46 billion and adjusted EPS of $1.11 beat estimates but fell 3% year over year, with linear TV and a softer film slate weighing on results.
  • Disney+ and Hulu added about 12.5 million subscribers to reach roughly 196 million combined, generating $352 million in direct‑to‑consumer profit, and Disney said this will be the last quarter it reports subscriber counts.
  • Parks, cruises and consumer products remained the cash engine, delivering strong Q4 results and a record full‑year operating income of about $10 billion, led by cruises and Disneyland Paris.
  • The board lifted the cash dividend 50% to $1.50 per share and doubled planned fiscal 2026 share repurchases to $7 billion, alongside guidance for $19 billion in operating cash flow and $9 billion in capex.
  • Management reaffirmed double‑digit adjusted EPS growth targets for fiscal 2026 and 2027 as shares fell around 8%, and Bob Iger enters his final contract year with a successor expected to be named early next year.