Shares of Walt Disney Co. (DIS) slipped nearly 5% in extended trading on Wednesday after the entertainment and media conglomerate reported a fourth-quarter earnings that missed Wall Street estimates, as streaming growth slows down.
Burbank, California-based Disney reported a fourth-quarter profit of $159 million or $0.09 per share, compared with last year's loss of $710 million or $0.39 per share.
Adjusted earnings for the quarter were $0.37 per share, compared to a loss of $0.20 per share last year. On average, 24 analysts polled by Thomson Reuters estimated an earnings of $0.44 per share.
Revenues for the quarter jumped 26% to $18.53 billion from last year's $14.71 billion last year. Analysts had a consensus revenue estimate of $16.26 billion.
CEO Bob Chapek said, "As we celebrate the two-year anniversary of Disney+, we're extremely pleased with the success of our streaming business, with 179 million total subscriptions across our DTC portfolio at the end of fiscal 2021 and 60% subscriber growth year-over-year for Disney+."
Disney Parks, Experiences and Products revenues nearly doubled to $5.45 billion from $2.73 billion last year.
Disney Media and Entertainment Distribution segment revenues gained 9% to $13.08 billion from $11.97 billion last year.
Direct-to-Consumer revenues, which includes Hulu, ESPN+ and Disney+ services, increased 38% to $4.56 billion. However, operating loss increased from $0.4 billion to $0.6 billion, due to higher losses at Disney+, and to a lesser extent, ESPN+, partially offset by improved results at Hulu.
Disney+ subscribers surged 60% to 118.1 million from 73.7 million last year, however, was below Street estimates of 125.4 million subscribers as of the fourth quarter end. Meanwhile, Hulu recorded 20% subscriber growth to 43.8 million subscribers and ESPN+ subscriber growth increased 66% to 17.1 million.
DIS closed Wednesday's trading at $174.53, down $0.58 or 0.33%, on the NYSE. The stock further dropped $7.83 or 4.49% in the after-hours trading.
For comments and feedback contact: editorial@rttnews.com
Business News
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.