Walt Disney (DIS) Stock: Streaming Profits Rise 39% as Subscribers Reach 196 Million

TLDR

• Disney raised its quarterly dividend by 50% to $1.50 per share and doubled its stock buyback program to $7 billion for fiscal 2026.
• The company reported Q4 adjusted earnings of $1.11 per share, beating analyst estimates by 6 cents despite revenue missing expectations at $22.5 billion.
• Streaming profits jumped 39% to $352 million, with Disney+ and Hulu adding 12.5 million subscribers to reach 196 million total.
• Theme parks operating income increased 13% to $1.88 billion, boosted by cruise ship expansion and growth at Disneyland Paris.
• Traditional television continues to decline with operating income down 21% to $391 million as cable TV fees and advertising revenue drop.

Disney announced a 50% dividend increase and doubled its share buyback plan on Thursday. The moves came as the entertainment giant posted mixed quarterly results.

The company will pay $1.50 per share, up from $1.00 previously. Disney also expanded its stock buyback program to $7 billion for fiscal 2026.

Fourth quarter adjusted earnings hit $1.11 per share. That beat Wall Street’s estimate of $1.05 by 6 cents.

The Walt Disney Company, DIS

The earnings per share figure dropped 3% from the prior year. But the beat shows progress in Disney’s business transformation.

Revenue came in at $22.5 billion for the quarter ending in September. That fell short of the $22.75 billion analysts expected.

Shares dropped nearly 3% in premarket trading after the report. The revenue miss overshadowed the earnings beat.

Streaming Business Delivers Strong Growth

Disney’s streaming division posted strong gains. Operating income surged 39% to $352 million.

The company added 12.5 million subscribers across Disney+ and Hulu. Total subscribers now stand at 196 million.

CFO Hugh Johnston credited a new distribution deal with Charter Communications. The partnership helped attract new streaming customers.

“Lilo & Stitch” launched on Disney+ during the quarter. The movie racked up 14.3 million views in just five days.

Disney has been working to turn streaming into a profit center. The results show that strategy is paying off.

Theme Parks Post Double-Digit Growth

The experiences division reported operating income of $1.88 billion. That represents a 13% increase from last year.

Disney cruise ships drove part of the growth. The company expanded its U.S. cruise business with more passenger days.

Disneyland Paris also contributed to the gains. The resort continues to attract visitors.

Theme parks remain a reliable cash generator for Disney. The division helps offset weakness in other areas.

Traditional television continues its downward slide. Operating income fell 21% to $391 million.

Cable TV fees keep dropping as more customers cut the cord. Advertising revenue also declined.

ESPN’s income slipped during the quarter. The sports network faces the same headwinds as Disney’s other TV properties.

The entertainment division took a hit from weaker film performance. Operating income dropped more than a third to $691 million.

This year’s movie slate didn’t match last year’s blockbusters. “Inside Out 2” and “Deadpool & Wolverine” set a high bar.

CEO Bob Iger has been cutting costs since returning in 2022. His contract runs through the end of 2026.

Disney plans to name Iger’s successor early next year. The company has been preparing for the leadership transition.

Disney forecast double-digit adjusted earnings growth for fiscal 2026. The company maintained its previous guidance.

Management also projected double-digit growth for fiscal 2027. The outlook signals confidence despite current challenges.

The board approved the increased dividend and buyback program. These moves return more cash to shareholders.

The post Walt Disney (DIS) Stock: Streaming Profits Rise 39% as Subscribers Reach 196 Million appeared first on Blockonomi.