Walt Disney Co (The)
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.02%.
Did DIS Beat Earnings? Q4 2025 Results
Walt Disney delivered a mixed fiscal fourth quarter, with adjusted EPS of $1.11 edging past Wall Street estimates even as revenue held essentially flat year-over-year at $22.46 billion — a result that sent shares <a href="https://247wallst.com/investing/2025/11/13/disney-dis-climbs-in-pre-market-after-mixed-q4-results/">higher in pre-market trading</a>. The headline numbers masked a tale of two businesses: the Experiences segment posted record full-year operating income of $9.99 billion, with international parks surging 25% on stronger attendance at Disneyland Paris and domestic results lifted by the Disney Treasure cruise ship launch, while the Entertainment segment's Q4 operating income tumbled 35% to $691 million against an unusually strong prior-year theatrical slate that included Inside Out 2 and Deadpool & Wolverine. A genuine bright spot emerged in Direct-to-Consumer, where operating income climbed 39% to $352 million as Disney+ and Hulu combined to reach 196 million subscribers. Analysts maintain a bullish long-term view anchored in Disney's park and cruise expansion, and management reinforced that confidence by guiding for double-digit adjusted EPS growth in both fiscal 2026 and 2027, while doubling its share repurchase target to $7 billion.
- Record Experiences segment operating income of $10.0 billion for the full year, up $723 million year-over-year
- Direct-to-Consumer operating income grew 39% to $352 million in Q4 driven by higher subscription pricing and subscriber growth
- Disney+ and Hulu subscriptions reached 196 million, up 12.4 million sequentially
- International Parks & Experiences operating income grew 25% driven by Disneyland Paris attendance and guest spending growth
- Domestic ESPN advertising revenue increased 8% in Q4
- Q4 Entertainment results adversely impacted by tough theatrical comparisons to Inside Out 2 and Deadpool & Wolverine
- Star India Transaction removed consolidated Star India results, creating adverse year-over-year comparisons
- Lower political advertising had a $40 million adverse impact on domestic linear networks vs. Q4 fiscal 2024
- Operating cash flow benefited from $1.7 billion in deferred tax payments related to California wildfire relief
“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, on the earnings call
Forward Guidance & Outlook
For Q1 fiscal 2026, Disney expects Entertainment DTC SVOD operating income of approximately $375 million, an adverse $400 million theatrical slate comparison impact, $140 million lower political advertising revenue, and an unfavorable $73 million comparison from Star India. Experiences will face $90 million in pre-opening expenses and $60 million in dry dock expenses at Disney Cruise Line. For fiscal 2026, Disney expects double-digit percentage Entertainment segment operating income growth (weighted to H2), low-single digit Sports segment operating income growth (weighted to Q4), high-single digit Experiences segment operating income growth (weighted to H2), 10% operating margin for Entertainment DTC SVOD, $19 billion in cash from operations, $9 billion in capital expenditures, $24 billion in content investment, and is doubling its share repurchase target to $7 billion. The company expects double-digit adjusted EPS growth in both fiscal 2026 and fiscal 2027. The fourth quarter of fiscal 2026 includes a 53rd week, and guidance does not include the benefit of that additional week.
DIS YoY Financials
DIS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.