Walt Disney Co. fell in early trading Thursday after a deeper slide in television and box-office revenue overshadowed stronger results from streaming and theme parks, pushing quarterly sales below Wall Street expectations.
The stock declined 3.3% to $112.80 before U.S. markets opened, outpacing a modest 0.1% dip in equity futures.
Disney reported adjusted earnings of $1.11 a share for the fiscal fourth quarter, topping analyst estimates of $1.05. Revenue slipped 0.5% from a year earlier to $22.46 billion, missing the $22.76 billion consensus. The shortfall was driven by a 35% drop in operating income at the entertainment division, where softer TV advertising and a lackluster film slate weighed on performance.
Strength at Disney’s streaming businesses and theme parks helped buffer the decline. Management reaffirmed its previous forecast for double-digit adjusted EPS growth in fiscal 2026 and 2027, underscoring confidence that the company can manage the transition from traditional media to direct-to-consumer platforms.
The quarter also marked the last time Disney will provide subscriber and ARPU metrics for Disney+ and Hulu. Analysts had expected Disney+ to add roughly 2.17 million customers for the period, with ARPU at $7.90, as the company continues to prioritize profitability over raw subscriber growth.
Theme parks remain a focal point for investors amid signs of slowing consumer spending and heightened competition in Orlando following Comcast’s recent opening of Epic Universe. Disney’s experiences unit—covering parks, resorts and cruises—is projected to deliver operating income of $1.92 billion, up from $1.66 billion a year earlier.
The results arrive as the company navigates fresh distribution tensions. Disney’s channels recently went dark on YouTube TV after contract talks stalled, an issue unlikely to affect the reported quarter but certain to be addressed on the 8:30 a.m. earnings call.
Disney shares have gained just 3.1% this year through Tuesday’s close, lagging far behind the S&P 500’s 16% advance in 2025. Investors will be looking for signs that the company’s transition strategy—and a steadier content pipeline—can reignite momentum.
