08:44 AM EST, 11/13/2025 (MT Newswires) -- Walt Disney ( DIS ) fiscal fourth-quarter revenue unexpectedly decreased year-over-year amid declines in its entertainment segment, although the company projects earnings will grow by double digits for its current and subsequent fiscal years.

The media and entertainment giant on Thursday reported adjusted earnings of $1.11 a share for the quarter ended Sept. 27, down from $1.14 the year before, but ahead of the FactSet-polled consensus of $1.05. Revenue ticked down to $22.46 billion from $22.57 billion, while the Street was expecting an increase to $22.76 billion.

The stock fell 5.6% in the most recent premarket activity.

For fiscal 2026, Disney ( DIS ) anticipates double-digit adjusted EPS growth versus the $5.93 recorded in the previous fiscal year. The company also forecasts an increase of the same amount annually for fiscal 2027.

For the fourth quarter, revenue in the entertainment segment dropped 6% to $10.21 billion, as an 8% gain in direct-to-consumer was offset by declines of 16% in linear networks and 26% in content sales and licensing. The company logged a 3% sequential increase in the number of Disney+ subscribers to 131.6 million, while Hulu's paid subscribers climbed to 64.1 million from 55.5 million as of Sept. 27.

Experiences revenue improved 6% to $8.77 billion. Domestic parks and experiences grew 6% to $5.86 billion, while the international side gained 10% to $1.74 billion. Consumer products sales rose 3% to $1.17 billion. The company's sports operations inclined 2% to $3.98 billion.

Disney ( DIS ) expects operating income in its entertainment business to increase by a double-digit percentage in fiscal 2026, with the growth weighted to the second half of the year. It also sees high-single-digit and low-single-digit operating income growth in the experiences and sports segments for the ongoing fiscal year.

For the ongoing three-month period, the company estimates its theatrical schedule comparisons to have a negative impact of $400 million on operating income in the entertainment unit, compared with the prior-year quarter.