Disney reported fiscal fourth‑quarter and full‑year 2025 results with total revenue of $22.46 billion, essentially flat compared with the same quarter a year earlier and below the consensus estimate of $22.75 billion. Adjusted earnings per share reached $1.11, beating the most frequently cited analyst estimate of $1.03 by $0.08 and reflecting strong operating leverage and a robust share‑buyback program.
Segment performance highlighted a mixed picture. Entertainment revenue fell 6% to $10.21 billion, a decline driven by a weaker theatrical slate compared with the prior year. Sports revenue grew 2% to $3.98 billion, while Experiences revenue increased 6% to $8.77 billion, driven by record attendance and higher per‑visitor spend at theme parks and cruise ships. Direct‑to‑Consumer operating income surged 39% to $352 million, underscoring the turnaround in the streaming business. Linear TV revenue dropped 21% to $391 million, reflecting the ongoing shift away from traditional broadcast.
The earnings beat can be attributed to disciplined cost management and the scale of the Direct‑to‑Consumer segment. Operating margin expanded to 15.5% from 12.6% a year earlier, driven by higher mix in high‑margin streaming and experiences and by the elimination of one‑time restructuring charges. Share buybacks and a focus on operating leverage helped lift earnings even as revenue remained flat.
Revenue fell short of expectations because the company faced headwinds in its legacy media businesses. The decline in linear TV and the weaker theatrical performance weighed on top‑line growth, while the YouTube TV carriage dispute added uncertainty. These factors offset the 12.4 million subscriber gain in Disney+ and Hulu, which pushed the combined subscriber base to 196 million and supported the Direct‑to‑Consumer operating income.
Management raised full‑year adjusted EPS guidance to $5.93 from $4.97, signaling confidence in continued profitability. The dividend was increased 50% to $1.50 per share, and the buyback program was doubled to $7 billion. CEO Bob Iger emphasized the company’s focus on AI to enhance streaming experiences, a $1 billion content investment, and the expansion of cruise and theme‑park assets, all of which are intended to drive long‑term growth.
Investors reacted negatively, citing the revenue miss and the decline in the Entertainment segment as primary concerns, despite the earnings beat. The market’s focus on top‑line growth highlights ongoing uncertainty about Disney’s ability to sustain revenue momentum in its legacy media businesses while the Direct‑to‑Consumer and Experiences segments continue to expand.
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