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

This analysis is based on the Yahoo Finance report [1] published on November 13, 2025, which detailed Disney’s mixed Q4 2025 earnings results and subsequent market reaction.

Disney’s fourth quarter fiscal 2025 results reveal a company in transition, with traditional media challenges offset by strong streaming profitability and robust parks performance. The revenue miss of $22.46 billion versus $22.83 billion consensus [1] was primarily driven by accelerating declines in linear networks, which fell 16% year-over-year in revenue and 21% in operating income [1]. This structural decline in traditional television represents the most significant concern for investors, contributing to the stock’s 5% pre-market decline and eventual 7.72% drop to $107.65 at market close [0].

However, the streaming business demonstrated remarkable progress, achieving $352 million in operating income (+39% YoY) [1] and reaching the full-year target of $1.33 billion streaming operating income [1]. Disney+ added 3.8 million subscribers, exceeding expectations of 2.4 million [1], while the new ESPN Unlimited service showed strong adoption with 80% of new sign-ups opting for the bundle [1]. These results validate Disney’s streaming strategy and provide confidence in the company’s ability to monetize its content directly to consumers.

The Experiences division continued its strong performance with 6% revenue growth to $8.77 billion [1] and 13% operating income growth for the full year [1]. This segment’s resilience demonstrates the value of Disney’s integrated entertainment ecosystem and provides a stable foundation during the media transition.

Disney’s strategic shift from linear to streaming is showing tangible results. The achievement of streaming profitability targets and strong subscriber growth [1] indicates the company is successfully navigating the cord-cutting transition, even as traditional media revenues decline.

The board’s decision to increase the dividend by 50% to $1.50 per share and double share repurchases to $7 billion [1] signals confidence in cash flow generation and commitment to shareholder returns. This aggressive capital allocation program could provide downside support despite near-term volatility.

The successful rollout of ESPN Unlimited represents a significant strategic milestone, potentially creating a new revenue stream and strengthening Disney’s sports content position. The high bundle adoption rate [1] suggests consumers value integrated sports offerings, which could become increasingly important as traditional cable packages decline.

The 16% linear revenue decline [1] represents an acceleration of cord-cutting trends that may be faster than management anticipated. This structural challenge requires careful monitoring as it directly impacts Disney’s largest revenue segment.

1. Linear TV Business Decline:
   The accelerating 16% year-over-year revenue decline and 21% operating income drop in linear networks [1] represents a structural challenge that could continue to pressure results if the cord-cutting trend accelerates further.

2. YouTube TV Carriage Dispute:
   The ongoing two-week carriage dispute with YouTube TV could result in approximately $60 million in quarterly revenue losses [1] and may affect subscriber relationships and brand perception.

3. Content Cost Inflation:
   Disney projects $1 billion in additional content spending for fiscal 2026 [1], primarily driven by sports rights costs. This could pressure margins if not offset by subscriber growth and pricing power.

1. Streaming Margin Expansion:
   With streaming profitability established, Disney has significant opportunity to expand margins through international expansion and price optimization, particularly for ESPN content.

2. Parks Growth Potential:
   The Experiences division continues to show strong growth potential, with new attractions and international expansion opportunities that could drive sustained double-digit growth.

3. Sports Content Monetization:
   The ESPN Unlimited platform provides a direct-to-consumer opportunity for sports content monetization that could become increasingly valuable as traditional sports broadcasting models evolve.

Disney’s Q4 2025 results reflect a company successfully navigating the media transition, with streaming operating income reaching $352 million (+39% YoY) [1] and full-year streaming profitability of $1.33 billion achieved [1]. While linear network revenue declined 16% [1], the Experiences division grew 6% to $8.77 billion [1] with 13% operating income growth for the full year [1]. Management issued confident guidance for fiscal 2026, expecting double-digit adjusted EPS growth [1] supported by the dividend increase to $1.50 and expanded $7 billion share repurchase program [1]. The current valuation appears attractive at a P/E ratio of 16.87x [0] with analyst consensus maintaining BUY ratings and $140 target price [0], though investors should monitor the linear TV decline trajectory and execution of strategic initiatives closely.