LOS ANGELES (Reuters) -Walt Disney ( DIS ) missed Wall Street estimates for quarterly revenue on Thursday as ongoing weakness in its cable TV unit overshadowed solid growth in streaming and theme parks, sending its shares down more than 3.9% in premarket trading.

The media and entertainment giant also unveiled plans to boost its dividend by 50% and double its share buyback plan for fiscal 2026.

It posted adjusted earnings per share of $1.11 for its fourth quarter ending in September, a 3% decline from a year earlier but 6 cents above an average LSEG estimate.

Profit rose in Disney's ( DIS ) theme parks unit, partially from an expansion of the U.S. cruise ship business and growth at Disneyland Paris.

Earnings at its streaming business surged 39% to $352 million. Disney ( DIS ) said it added 12.5 million subscribers to Disney+ and Hulu during the quarter, reaching a total of 196 million. 

A new distribution deal with cable and broadband provider Charter Communications ( CHTR ) helped draw new streaming customers, Chief Financial Officer Hugh Johnston told Reuters.

Box office smash "Lilo & Stitch" debuted on Disney+ during the quarter and racked up 14.3 million views in its first five days, he said.

Disney ( DIS ) has been remaking itself to adjust to the industry-wide decline of traditional broadcast and cable TV. It has invested in new theme park attractions and cruise ships and worked to lure subscribers to its streaming services.

CEO Bob Iger undertook aggressive cost-cutting when he returned to Disney ( DIS ) in 2022. His current contract expires at the end of 2026, and Disney ( DIS ) has said it will name Iger's successor early next year.

TRADITIONAL TV DECLINE

Thursday's earnings report reflected a continued slide in television fees and advertising revenue, but the company projected confidence in the next two years. 

Disney ( DIS ) forecast double-digit adjusted EPS growth for fiscal 2026, in line with its previous forecast. The company also said it expected double-digit adjusted EPS growth for fiscal 2027. 

The company's board declared a dividend of $1.50 per share, up from $1 a share, and doubled its stock buyback to $7 billion in fiscal 2026.

In the just-ended quarter, Disney's ( DIS ) revenue was comparable to a year ago at $22.5 billion but shy of the $22.75 billion analyst forecast.

Operating income at the entertainment division slumped by more than a third to $691 million after this year's films failed to match the success of last year's hits "Inside Out 2" and "Deadpool & Wolverine." 

Profit at the traditional television unit declined 21% to $391 million, and income from ESPN ( DIS ) slipped too.

The experiences unit that includes theme parks posted operating income of $1.88 billion, up 13% from a year ago. Part of the growth came from more passenger days on Disney ( DIS ) cruise ships, the company said.

"This was another year of great progress as we strengthened the company by leveraging the value of our creative and brand assets and continued to make meaningful progress in our direct-to-consumer businesses," Iger said in a statement.