Walt Disney (NYSE: DIS) shares are down 8% on Thursday, November 13, following mixed fourth-quarter results.

Namely, the company posted revenue of $22.5 billion, missing Wall Street’s $22.83 billion estimate, largely due to a 6% decline in its entertainment division. 

Linear network revenue also plunged $107 million compared to 2024, while operating income slid 21%, reflecting an ongoing drop in ad spending.

Indeed, domestic TV networks faced lower ad revenue tied to weaker viewership and a $40 million loss in political advertising compared to last year’s quarter, while weak theatrical performance added additional pressure.

At the time of writing, Disney stock was trading at $107.30, down from the previous close of $116.65.

Disney’s streaming service shows improvement

Despite weaker revenue, adjusted earnings per share (EPS) came in at $1.11, above the $1.07 forecast but down from $1.14 a year earlier. 

Disney’s streaming business also continued to show improvement. For example, Disney+ recorded 3.8 million new subscribers during the last quarter. The direct-to-consumer segment, which includes not only Disney+ but also Hulu, saw $352 million in profit, up from $253 million last year.

The management is now targeting around $375 million in profit for the first quarter of fiscal 2026. Disney plans to merge the two platforms next year, after achieving $1.33 billion in full-year streaming operating income.

Disney’s experiences division, i.e., theme parks and resorts, also posted a 6% revenue increase year-over-year in Q4, though results came in just shy of forecasts. Full-year operating income for the unit rose 13%, and the company expects profit growth in the high single digits next year.

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