Disney revenue misses estimates as cable weakness offsets gains in streaming and parks

Walt Disney reported quarterly revenue of $22.5 billion, slightly below analyst expectations of $22.75 billion, as weakness in its cable TV unit overshadowed strong performance in streaming and theme parks. Following the release, Disney shares fell 3.9% in premarket trading.

The company posted adjusted earnings per share (EPS) of $1.11, down 3% from a year earlier but 6 cents above market forecasts. Disney’s streaming business saw 39% growth in profit to $352 million, with 12.5 million new subscribers added to Disney+ and Hulu, bringing the total to 196 million subscribers. New content and a distribution deal with Charter Communications helped drive streaming growth.

Disney’s theme parks and cruise business also performed well, with operating income rising 13% to $1.88 billion, thanks in part to increased cruise ship passenger days and growth at Disneyland Paris. However, the company faced ongoing challenges in traditional television, with profit in the cable unit declining 21% to $391 million, and ESPN income also slipping.

In response to strong cash flow, Disney announced a 50% increase in its dividend to $1.50 per share and doubled its stock buyback program to $7 billion for fiscal 2026. CEO Bob Iger highlighted ongoing strategic efforts to adjust to industry-wide declines in traditional TV while expanding streaming, parks, and cruise operations.