Walt Disney Co (NYSE:DIS) reported its fiscal fourth quarter with total revenue at US $22.5 billion, essentially flat year-on-year and just under analyst forecasts of about US $22.8 billion. Operating income was US $3.5 billion, a 5% decline from US $3.7 billion in the same quarter last year and significantly below the expected US $5.6 billion. Adjusted EPS rose to US $1.11 from US $1.04 a year ago, topping the US $1.05 consensus.
On the streaming front, Disney added 3.8 million subscribers in the quarter for Disney+, pushing combined Disney+/Hulu totals higher. Direct-to-consumer streaming revenue rose about 8% year-on-year. The experiences segment — which covers theme parks and cruise lines — delivered revenue of about US $8.8 billion, in line with expectations.
The company also faced external headwinds. It dealt with viewer backlash stemming from the removal of Jimmy Kimmel from its ABC lineup, and is engaged in a dispute with YouTube over carriage fees that could affect subscriber access. Meanwhile, its sports-betting arm, ESPN, announced a fresh partnership with Draftkings Inc (NASDAQ:DKNG) after ending its prior deal with Penn Entertainment.
#Investor Takeaway
The subscriber growth in streaming provides a bright spot for Disney, indicating resilience in its digital business. However, the flat overall revenue and falling operating income highlight that its legacy media and other segments continue to drag. Investors should pay close attention to retention metrics, content-cost trends, and how quickly the streaming engine funds the broader business.
#Market Impact
Disney’s shares fell roughly 3.4% in pre-market trading after the results were released. Year-to-date, the stock is up about 4.8%, underperforming the broader S&P 500’s roughly 16.5% gain.
#What’s Next
Key watchpoints for the coming quarters include:
Subscriber retention and average revenue per user in streaming
Programming and marketing cost trends in direct-to-consumer operations
Outcomes of carriage disputes or platform fee negotiations that may affect access
The pace at which profits can ramp beyond mere subscriber growth and offset legacy media decline
#Broader Market Context
The streaming-video market remains intensely competitive, with major players adjusting to shifting consumer behaviors. Disney’s results reflect the broader industry challenge: turning digital momentum into full-scale profitability while managing the drag from legacy segments.