**Disney Stock Drops 8% Following Mixed Q4 Earnings and Decline in Ad Revenue**
Disney stock (NYSE: DIS) fell sharply by 8% on Thursday, November 13, after the company reported mixed fourth-quarter earnings results that missed Wall Street expectations.
The entertainment giant posted quarterly revenue of $22.5 billion, falling short of analysts’ estimate of $22.83 billion. This revenue miss was largely driven by a 6% decline in Disney’s entertainment division.
### Weakness in Entertainment and Linear Networks
A significant factor contributing to the revenue shortfall was a $107 million decrease in linear network revenue compared to the same quarter in 2024. Operating income also dropped 21% amid weaker advertising spending and declining viewership.
Disney’s domestic TV networks experienced a decrease in advertising revenue, due in part to reduced audience numbers and a $40 million loss in political ad spending compared to last year. Additionally, the company’s theatrical segment underperformed, applying further pressure on earnings.
### Streaming and Experiences Show Bright Spots
Despite the overall revenue challenges, Disney’s streaming business posted strong growth. Disney+ gained 3.8 million new subscribers in Q4, helping the direct-to-consumer segment generate $352 million in profit—an improvement from $253 million in the same quarter last year. This segment includes Disney+ and Hulu, both of which are contributing positively to the company’s bottom line.
The experiences division, which covers theme parks and resorts, reported a 6% year-over-year revenue increase for the quarter. However, these results still fell short of analysts’ expectations. On a positive note, the full-year operating income for this division rose by 13%, with the company projecting profit growth in the high single digits for the next fiscal year.
### Outlook and Future Plans
At the time of writing, Disney stock was trading at $107.30, down from the previous close of $116.65. Looking ahead, the company is targeting $375 million in profit for the first quarter of fiscal 2026.
Disney also announced plans to merge its streaming platforms next year, following a full-year streaming operating income of $1.33 billion. This strategic move aims to further streamline its direct-to-consumer offerings and enhance profitability.
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*The Walt Disney Company continues to navigate challenges in traditional media while capitalizing on streaming growth and its experiences business. Investors will be watching closely as the company implements its strategies in the coming quarters.*
https://bitcoinethereumnews.com/tech/disney-stock-drops-8-following-mixed-earnings-and-ad-revenue-fall/
