It is a tough one within the Magic Kingdom in the present day.
Shares of Disney are down 8.8% shortly after the open following in the present day’s earnings report. That sends them to the bottom stage since Might.
DIS day by day
The numbers (fiscal This autumn 2025)
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Adjusted EPS: $1.11 vs 1.05 estimate
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Income: $22.5B, flat y/y and slightly below the $22.75B avenue view.
Streaming / DTC (the intense spot)
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Streaming revenue +39% y/y to $352M.
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Disney+ and Hulu added 12.5M subs, taking the mixed base to about 196M.
Parks & Experiences (nonetheless robust)
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Working revenue on the “experiences” unit (parks, resorts, cruises) +13% y/y to $1.88B, pushed partly by extra cruise passenger days and Disneyland Paris.
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It is a good signal for the financial system/sconsumer
Leisure / TV / ESPN (the issue youngster)
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Leisure division working revenue down by greater than a 3rd to $691M as this 12 months’s movie slate couldn’t match final 12 months’s hits.
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Conventional TV revenue -21% to $391M; ESPN additionally down.
Weak cable/linear tendencies are what pulled income below consensus and are the core bear argument on the inventory and why shares are down so exhausting in the present day. The excellent news is the dividend was hiked 50% to $1.50 and so they’re shopping for again shares.
There’s a transition that is the wager you make with Disney shares and it is one that buyers are making too as streaming wins versus cable. High executives stated that as Disney continues to determine Direct-to-Client as “a core driver of progress,”
“Trying forward, we’re positioned to proceed to develop our streaming enterprise in fiscal 2026,” stated CEO Bob Iger.
