Disney Q4 2025 Earnings: Mixed Results with Streaming Growth Amid TV Decline

This analysis is based on Disney’s Q4 2025 earnings report released on November 13, 2025, which revealed mixed results across the company’s business segments [1][2]. The stock declined 7.75% to $107.61, underperforming the broader market during a significant sell-off [0][1].

Disney reported Q4 revenue of $22.46 billion, missing analyst expectations of $22.83 billion, while adjusted EPS of $1.11 beat estimates of $1.07 [1][2]. This divergence reflects the company’s complex transition from traditional media to streaming-focused operations.

The entertainment division experienced a 6% revenue decline, with linear network revenue falling 16% year-over-year and operating income dropping 21% due to accelerated cord-cutting [1][2]. Conversely, the streaming segment showed strong momentum with Disney+ adding 3.8 million subscribers (exceeding 2.4 million expectations) and streaming profit increasing 39% to $352 million [1][2]. The parks division grew 6% to $8.77 billion with operating income increasing 13% for the quarter [1].

Disney’s streaming business achieved its full-year operating income target of $1.33 billion, demonstrating successful execution of the direct-to-consumer strategy [1]. However, the accelerating decline in traditional TV operations (21% operating income drop) highlights the challenging nature of this transition [1][2].

Management significantly increased shareholder returns through a 50% dividend hike to $1.50 per share and doubling share repurchases to $7 billion for fiscal 2026 [1][2][3]. This signals confidence in cash flow generation despite near-term headwinds.

Disney plans to invest approximately $24 billion in content across Entertainment and Sports for fiscal 2026, a $1 billion increase from the prior year [1]. This substantial investment will fund ESPN sports rights, film studio franchises, and television programming to support integrated businesses and direct-to-consumer services.

An ongoing carriage dispute with YouTube TV since October 30 represents a significant near-term risk, potentially costing Disney approximately $60 million in revenue over 14 days [1][3]. Management has “built a hedge” into forecasts assuming negotiations could be prolonged, indicating this risk is material to financial projections.

• Linear TV Decline Acceleration:
  The 21% decline in linear TV operating income represents an accelerating trend that may significantly impact future earnings as cord-cutting continues [1][2].
• YouTube TV Dispute Duration:
  The ongoing carriage dispute affecting approximately 10 million subscribers could create sustained revenue pressure if not resolved quickly [1][3].
• Content Investment Returns:
  The $24 billion planned content investment requires careful monitoring to ensure appropriate returns in the competitive streaming landscape [1].
• Leadership Transition:
  CEO Bob Iger’s contract expires at the end of 2026, with succession planning potentially introducing uncertainty during this critical transformation period [1].

• ESPN Unlimited Expansion:
  The new ESPN Unlimited streaming service launched in August at $29.99/month represents a strategic evolution in sports content distribution, with Morgan Stanley projecting 3 million subscribers by fiscal 2026 end, contributing $500 million in annual revenue [1].
• Parks Segment Strength:
  The experiences division’s 6% growth and 13% operating income increase demonstrate continued consumer demand for Disney’s premium experiences [1].
• Streaming Profitability:
  The 39% increase in streaming profits to $352 million indicates improving unit economics as the business scales [1][2].

Disney’s Q4 2025 results reflect a company in transition, with traditional media operations declining while streaming and parks segments show growth. Management projects double-digit adjusted EPS growth for fiscal 2026 and reiterated similar guidance for fiscal 2027, supported by increased shareholder returns and strategic content investments [1][2]. The YouTube TV dispute and accelerating linear TV declines represent near-term challenges, while the streaming profitability improvements and parks strength provide foundation for long-term growth [1][3]. The company’s ability to manage the traditional media decline while scaling streaming operations will be critical for future performance.