Sagging TV revenue has overshadowed Disney's streaming successes. Is its stock worth buying?

Disney's financial results did not encourage investors: revenue was negatively affected by weak performance of TV channels and a poor movie distribution season. And the growth of the streaming business was not enough to support the company's quotes. After the publication of the quarterly report, Disney shares fell in price on the premarket.

Disney's adjusted earnings in the fourth quarter of fiscal 2025, which ended Sept. 27, fell 3 percent from the same period in 2024 to $1.11 per share, the company said in a report. Wall Street had expected the figure to be even lower at $1.05, according to LSEG data cited by CNBC. Net income increased 2.5 times from the same period in 2024 to $1.44 billion, or $0.73 per share.

At the same time, the revenue did not meet forecasts: it slightly decreased in annual terms - to $22.46 billion, while analysts on average expected $22.75 billion, the channel points out.

The entertainment division's revenue was down 6% from a year ago - mainly due to declines in linear TV and a disappointing movie season. As consumers continue to abandon traditional pay-TV packages, streaming remained the company's strongest area of focus, CNBC explains. Operating profit at Disney's TV channels fell 21%, while streaming grew 39%, including higher prices for subscriptions, CNBC reports. Advertising revenue for TV stations - including the ABC over-the-air network and pay channels like FX - also declined.

Disney's flagship streaming service Disney+ added 3.8 million paid subscribers, bringing its total to 131.6 million. The number of subscribers of the Hulu platform, which is now also owned by the company, amounted to 64.1 million. This report was the last in which Disney discloses the size of the user base of its streaming platforms and the average revenue per subscriber (ARPU). Earlier, Netflix stopped providing such information.

Revenue in the experiences segment, which includes Disney theme parks, resorts, cruises and consumer products, grew 6%. And operating profit for this business increased 13% to a record $1.9 billion.

As with its fiscal third-quarter report, weakness in the movie segment and sagging revenue from traditional television overshadowed positive results from its streaming business and theme parks. Disney shares fell 3.6 percent in the premarket on Nov. 13.

Wall Street remains optimistic about the company's securities: 28 analysts out of 34 recommend buying them, MarketWatch shows . And only one - advises to get out of Disney. The average target assumes growth of quotations by almost 17%.

This article was AI-translated and verified by a human editor