Overview

* Disney ( DIS ) Q4 revenue was flat yr/yr and missed analyst expectations

* Adjusted EPS for Q4 beat analyst estimates

* Company's Direct-to-Consumer segment saw 8% revenue growth in Q4

Outlook

* Disney ( DIS ) forecasts double-digit adjusted EPS growth for fiscal year 2026

* Company expects $24 bln in content investment across Entertainment and Sports

* Disney ( DIS ) plans $9 bln in capital expenditures for fiscal year 2026

Result Drivers

* DIRECT-TO-CONSUMER GROWTH - Revenue increased 8% due to higher subscription rates and subscriber growth, despite absence of Star India revenue

* ENTERTAINMENT DECLINE - Lower theatrical distribution results and decreased advertising revenue impacted segment operating income

* EXPERIENCES SEGMENT GROWTH - Growth in international parks and cruise lines boosted operating income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Miss $22.46 $22.75

Revenue bln bln (23

Analysts

)

Q4 Beat $1.11 $1.05

Adjusted (21

EPS Analysts

)

Q4 EPS $0.73

Q4 Free $2.56

Cash bln

Flow

Q4 $2.05

Pretax bln

Profit

Q4 $3.48

Segment bln

operatin

g income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 29 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the broadcasting peer group is "buy"

* Wall Street's median 12-month price target for Walt Disney Co ( DIS ) is $138.00, about 15.5% above its November 12 closing price of $116.65

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)