Disney shares drop as Q4 revenues miss estimates
By Benjamin Chiou
Date: Thursday 13 Nov 2025
(Sharecast News) - Shares in Disney tanked on Thursday after the streaming and entertainment group missed market estimates with its results for the fiscal fourth quarter, as top-line gains in streaming and experiences were offset by declines in its movie business and cable TV networks.
Revenues totalled $22.5bn over the three months to 27 September, in line with the prior year and short of the $22.75bn expected by a consensus of analysts.
In the entertainment division, which accounts for nearly half of total sales, direct-to-consumer (streaming) revenues were 8% higher than last year at $6.25bn, helped by Disney+ and Hulu subscriptions rising 12.4m over the preceding three months to 196m.
However, linear networks (TV) sales dropped 16% to $2.06bn due to lower viewership and political advertising revenues, while content sales/licensing sales (comprising theatrical distribution, as well as music, stage, magazines and post-production services) slumped 26% to $1.90bn as a result of record releases the previous year.
Elsewhere, Disney's sports revenues were 2% higher than last year at $3.98bn, while experiences revenues (which encompass theme parks, signature experiences and licensed consumer products) rose 6% to $8.77bn.
Adjusted earnings per share fell 3% year-on-year to $1.11, though 6 cents higher than market forecasts.
"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," said chief executive Bob Iger, who is expected to step down next year.
The stock was down 8.2% at $107.10 by 1517 GMT, shortly after the opening bell in New York.
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