Walt Disney Co (NYSE:DIS, ETR:WDP) shares fell almost 9% after the entertainment giant posted mixed financial results for the fiscal fourth quarter.
Disney reported revenue of approximately $22.46 billion, below analyst expectations of $22.75 billion.
In comparison, adjusted earnings per share (EPS) came in at $1.11, exceeding the $1.07 consensus. The EPS beat was attributed in part to operational leverage and share buybacks.
Disney’s segment results were mixed, with Parks and Experiences showing strong growth. Full-year operating income reached a record $10 billion, and fourth-quarter operating income increased 13% year-over-year.
The Direct-to-Consumer business saw revenue growth of 6% to 8%, driven by an increase in Disney+ and Hulu subscriptions, which reached a combined total of 196 million by the end of the quarter.
The Entertainment segment faced challenges, with fourth-quarter operating income declining $376 million from the prior year, affected by weaker content sales and linear networks performance.
Sports operating income was largely stable, with a modest decline of $18 million for the quarter, as higher costs were partially offset by increased advertising and subscription revenues.
For the full fiscal year, Disney reported revenue of $94.4 billion, up 3% from $91.4 billion in 2024. Full-year adjusted EPS rose 19% to $5.93, compared with $4.97 in fiscal 2024.
The company also outlined plans for fiscal 2026 and 2027, including expected double-digit adjusted EPS growth, continued investment in content and Parks and Experiences, and increased share repurchases.
“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,” Disney CEO Robert Iger said in a statement.
“Our strategy, coupled with our portfolio of complementary businesses and a strong balance sheet, enables us to continue investing in high-quality offerings for our consumers and increasing our returns to shareholders, and I’m pleased with our many achievements this fiscal year to position Disney for the future.”
Further, the board declared a cash dividend of $1.50 per share, payable in two installments in January and July 2026.