TLDR
- Disney increased its quarterly dividend 50% to $1.50 per share and doubled share buybacks to $7 billion for fiscal 2026.
- Q4 adjusted earnings reached $1.11 per share, topping analyst expectations by 6 cents, though revenue of $22.5 billion missed forecasts.
- Streaming operating income jumped 39% to $352 million with 12.5 million new Disney+ and Hulu subscribers added.
- Theme parks operating income grew 13% to $1.88 billion driven by cruise ship expansion and Disneyland Paris performance.
- Traditional TV operating income declined 21% to $391 million as cable fees and advertising revenue continue falling.
Disney announced a major dividend increase and expanded buyback program Thursday following mixed quarterly results. The entertainment company is rewarding shareholders while transforming its business model.
The board approved a dividend of $1.50 per share, up from $1.00. Disney also doubled its stock repurchase program to $7 billion for fiscal 2026.
Fourth quarter adjusted earnings came in at $1.11 per share. This topped the Wall Street consensus of $1.05 by 6 cents.
Revenue totaled $22.5 billion for the September quarter. That missed analyst estimates of $22.75 billion.
Shares fell nearly 3% in premarket trading. Investors focused on the revenue shortfall despite the earnings beat.
Streaming Business Shows Strong Momentum
Disney’s streaming segment delivered impressive growth. Operating income surged 39% to $352 million during the quarter.
The company added 12.5 million subscribers across Disney+ and Hulu. Total subscribers now reach 196 million.
CFO Hugh Johnston pointed to a new Charter Communications distribution deal. This partnership helped drive subscriber growth.
“Lilo & Stitch” premiered on Disney+ during the quarter. The film generated 14.3 million views in its first five days.
Parks and Experiences Drive Revenue Growth
The experiences division posted operating income of $1.88 billion. This marks a 13% increase from the prior year.
Disney’s cruise ship business contributed to the growth. The company added more passenger days in the U.S. market.
Disneyland Paris also showed strong performance. The international resort continues attracting visitors.
Traditional television faces ongoing challenges. Operating income dropped 21% to $391 million in the quarter.
Cable TV subscriptions continue declining as cord-cutting accelerates. Advertising revenue also fell during the period.
ESPN experienced lower income as well. The sports network faces the same industry pressures.
The entertainment division saw operating income fall more than one-third to $691 million. This year’s film slate underperformed compared to last year’s “Inside Out 2” and “Deadpool & Wolverine.”
CEO Bob Iger’s contract extends through the end of 2026. Disney plans to announce his successor in early 2025.
Disney projects double-digit adjusted earnings growth for fiscal 2026. The company maintained this guidance from previous quarters.
Management also expects double-digit growth in fiscal 2027. This outlook demonstrates confidence in the business transformation.
The increased dividend and buyback program returns more capital to shareholders. These actions reflect Disney’s improving financial position as streaming becomes profitable.
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