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Disney Tops Profit Estimates But Revenue Falls Short as Linear TV Struggles Continue

1. DIS reported mixed Q4 results; profits beat estimates, but revenues fell short. 2. Direct-to-consumer revenue rose 8%, yet missed expectations at $6.25 billion. 3. Linear TV business saw sharp declines in revenue and income due to viewership drops. 4. Disney anticipates double-digit EPS growth in fiscal 2026 and plans $7 billion buyback. 5. Potential deal with YouTube TV noted as negotiations regain momentum.

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FAQ

Why Bearish?

Despite profit beating estimates, revenue shortfall and declining linear TV impact sentiment negatively. Historical context: Companies like Netflix faced similar backlashes after missing revenue expectations despite subscriber growth.

How important is it?

The influences on subscriber growth and revenue directly affect DIS's financial outlook, thus significantly impacting stock price.

Why Short Term?

Immediate concerns over revenues and viewership negatively affect DIS stock in the short term; longer-term benefits depend on execution of upcoming plans.

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