Disney's Q4: Streaming holds the line, TV stumbles, parks stay busy
If you're a YouTube TV subscriber who suddenly lost ESPN on game day, you probably felt Disney's quarter more than any earnings call could explain. That blackout wasn't just an inconvenience - it was a sign of where the company's struggles live now: old-school TV. And where the company's bets are paying off: streaming and theme parks.
Here's the split screen. Disney posted $1.31 billion in profit for the quarter ended Sept. 25 - 73 cents a share - up from $460 million last year. Adjusted earnings landed at $1.11 a share, beating expectations. But revenue came in light at $22.46 billion versus the $22.86 billion Wall Street wanted. So, a win with an asterisk.
Streaming: steady rise, clearer path
Disney's direct-to-consumer business - that's Disney+ and Hulu - kept moving the right way. Operating income rose to $352 million from $253 million a year ago, with revenue up 8%.
Disney+ added subscribers on both sides: up 3% in the U.S. and Canada, up 4% internationally (excluding Hotstar). Total Disney+ subs reached 132 million, up from 128 million last quarter. Combined Disney+ and Hulu? 196 million, up 12.4 million from Q3. That's a lot of households.
There's a wrinkle, though. Cancellations spiked in September when ABC briefly pulled Jimmy Kimmel (movies and tv series)'s show after backlash over comments that touched a political nerve. It was short-lived, but it showed how fast audience sentiment can swing. The data backs that up.
TV networks: the drag on the quarter
Linear networks are where the pain is. Operating income there fell 21%, revenue slid 16%. Some of that is a tough comparison - last year got an $84 million lift from Star India. But the bigger story is softer ad sales tied to lower viewership and a quieter political ad cycle. Fewer eyeballs, fewer dollars.
And yes, the YouTube TV fight didn't help. Disney is still working on a new licensing deal after its channels went dark on the platform late last month, leaving sports fans and local news watchers scrambling. If you missed that, here's the backdrop: Disney content vanished from YouTube TV during a carriage dispute. It's the kind of standoff we're going to see more of as bundles fray.
Movies: a quieter slate, tougher comp
At the box office, Disney didn't have the same punch as last year's quarter, which rode the late surge from "Deadpool & Wolverine" and lingering "Inside Out 2" money. This time, the lineup included "The Fantastic Four: First Steps," "The Roses," and "Freakier Friday." Not bad, just not buzzy enough to move the needle the same way.
Parks and experiences: still a bright spot
Meanwhile, the parks kept humming. Operating income in the Experiences division - parks, cruises, merchandise, games - climbed 13% to $1.88 billion. Domestic parks were up 9%. International parks and Experiences jumped 25%. You could feel it in the lines and the reservation books.
What Disney's promising next
Looking ahead, Disney stuck to its outlook for double-digit adjusted EPS growth in fiscal 2026 and 2027. It's planning $7 billion in share buybacks next fiscal year - twice this year's pace - and lifting its dividend to $1.50 a share, a 50% bump.
One more shift worth flagging for anyone who lives in subscriber dashboards: Disney is going to stop reporting paid subs for Disney+, Hulu, and ESPN+ on a regular basis. ESPN+ goes first, ending with fiscal Q4 2025, with Disney+ and Hulu following in fiscal Q1 2026. Translation: the KPI focus is moving to revenue and profit, not raw sign-ups.
The market reaction - and what it says
Investors weren't thrilled. The stock fell more than 6% before the open. Maybe it's the revenue miss. Maybe it's nerves about traditional TV. Probably both.
Here's what this could mean: if you cover TV and film, watch the carriage fights and the ad market - that's where the story is hot right now. If you cover streaming, the turn to profitability looks real, but it's fragile; one controversy can dent momentum. And if your beat is parks, the demand feels durable, even with prices high and the calendar crowded.
It's a mixed quarter that reads like Disney trying to cross a river on stepping stones: one foot on old TV, one on streaming, with parks as the sturdy rock in the middle. The trick is not slipping while the water is moving fast.
