The post Disney Stock Drops 8% Following Mixed Earnings and Ad Revenue Fall appeared com. TLDR Disney stock dropped 8% after mixed fourth-quarter earnings. The company reported revenue of $22. 5 billion, missing Wall Street’s $22. 83 billion estimate. A 6% decline in Disney’s entertainment division contributed to the revenue miss. Linear network revenue fell by $107 million compared to the same quarter in 2024. Operating income dropped 21% due to weaker ad spending and declining viewership. Disney stock (NYSE: DIS) fell by 8% on Thursday, November 13, following the company’s mixed fourth-quarter earnings results. The company reported revenue of $22. 5 billion, which missed Wall Street’s estimate of $22. 83 billion. A 6% drop in its entertainment division largely caused the revenue shortfall. Weakness in Entertainment and Linear Networks The decline in Disney’s entertainment division contributed to lower revenue for the quarter. This drop included a $107 million decrease in linear network revenue compared to the same quarter in 2024. Operating income for the quarter also fell by 21%, reflecting weaker ad spending and lower viewership. In addition, Disney’s domestic TV networks saw a decrease in advertising revenue. This was due to weaker viewership and a $40 million loss in political ad spending compared to last year. Moreover, the company’s theatrical performance continued to underperform, further pressuring its earnings. Disney Stock Drops to $107. 30 After Q4 Results Despite weaker overall revenue, Disney’s streaming business showed strong growth. Disney+ added 3. 8 million new subscribers in the fourth quarter, contributing to a $352 million profit from its direct-to-consumer segment. This segment, which includes Disney+ and Hulu, saw a profit increase from $253 million last year. Disney’s experiences division, which includes theme parks and resorts, posted a 6% year-over-year revenue increase for Q4. However, results fell short of analysts’ expectations. Full-year operating income for the division rose by 13%, and the company expects profit growth in the high single digits next.
