By skyforbes 
Disney (DIS) reported mixed fourth quarter results on Thursday as continued declines in its linear TV business offset strength in parks and streaming and investors eye the final stretch of CEO Bob Iger’s turnaround ahead of his planned departure next year.
Disney reported revenue of $22.46 billion for the quarter, missing analyst expectations of $22.83 billion and coming in roughly comparable to the year-earlier period. A 6% revenue drop within the company's entertainment division, which includes its streaming, TV, and theatrical businesses, contributed to the top-line miss.
Linear network revenue fell 16% year over year, while operating income dropped 21% as cord-cutting accelerated and ad dollars continued to shift toward streaming.
The company said the decline in operating income was driven in part by the sale of its Star India assets, which contributed $84 million to results a year ago. Domestic linear networks also came under pressure from lower advertising tied to weaker viewership and a $40 million decline in political ad spending compared to the prior-year quarter.
Disney also faced weaker theatrical comparisons in the period, adding to the drag on overall Entertainment results.
Adjusted earnings per share (EPS) of $1.11 for the quarter came in ahead of the $1.07 expected by analysts polled by Bloomberg. Earnings fell 3% from $1.14 a year ago.
Still, for full-year 2025, the company reported adjusted EPS of $5.93, a 19% year-over-year jump and ahead of both its own guidance and Wall Street's $5.87 projection.
Disney said it expects fiscal 2026 to deliver double-digit adjusted EPS growth from 2025. The company also expects to double its share repurchase target to $7 billion next year.
Additionally, the company announced a $0.50 increase in its cash dividend to $1.50.
Streaming gains, parks strength
On the streaming front, Disney+ added 3.8 million subscribers in the quarter, ahead of the 2.4 million that analysts polled by Bloomberg had expected.
The direct-to-consumer segment, which includes Disney+ and Hulu, posted a profit of $352 million, compared to $253 million a year ago. The company continues to prioritize consistent profitability in streaming amid the ongoing shift away from traditional pay-TV.
Disney is targeting approximately $375 million in streaming profits for Q1 2026, with plans to merge Disney+ and Hulu next year. In fiscal 2025, the company achieved its target of securing $1.3 billion in streaming operating income, reporting $1.33 billion for the full year.
The update comes on the back of fresh price hikes for Disney+ and Hulu, which took effect Oct. 21 and marked the company’s fourth straight year of increases.
Meanwhile, Disney’s experiences division, which includes the parks, saw revenue grow 6% year over year in Q4, although sales fell slightly short of Wall Street estimates.
Disney expects park profits to grow in the high single digits next year, following a 13% increase in full-year 2025 operating income.
Analysts highlight steady domestic attendance despite new competition from Universal’s Epic Universe (CMCSA), while cruises remain a key growth driver as new ships set sail and last year’s hurricane headwinds fade.
The Disney Adventure cruise, originally slated to debut next month, has been pushed to March 2026, trimming near-term profit but leaving long-term growth intact, according to analysts.
On the sports side, Disney’s new ESPN Unlimited app, launched in August at $29.99 per month, marks the biggest evolution yet in its sports strategy. According to Bloomberg, Disney is looking to bring the ESPN brand to Asia, with plans to add more live sports to Disney+ and gradually roll out ESPN across the region.
Morgan Stanley estimates the service will reach about 3 million subscribers by the end of fiscal 2026 and contribute roughly $500 million in incremental annual revenue, helping offset a short-term hit from the ongoing YouTube TV carriage dispute, which the firm estimates will shave off about $60 million in revenue this quarter.
The impact is expected to be short-lived, with some viewers shifting to Hulu + Live TV and ESPN Unlimited.