Disney shares tumbled nearly eight percent last week and continue to slide as Wall Street reacts to underwhelming fourth-quarter earnings. The entertainment giant reported $22.46 billion in revenue—roughly flat year-over-year—and below analyst expectations. Operating income also declined five percent to $3.48 billion, signaling continued struggles in its traditional TV and film divisions.
While Disney’s theme parks and streaming platforms showed modest gains, the lackluster overall financial performance casts a shadow over CEO Bob Iger’s highly anticipated return. Iger, who resumed leadership in 2022, has not yet reversed the downward trend in the company’s stock, which has hovered between $80 and $125 over the past three years.
U.S. amusement parks saw a one percent decline in attendance but managed revenue growth due to higher ticket prices. Internationally, the parks performed better, with a 25 percent surge in revenue. However, box office disappointments from major film releases continue to weigh on the company’s bottom line.
Adding to investor unease is Disney’s plan to spend $24 billion on content development across sports and entertainment. While that figure is lower than recent years—when critics accused Disney of oversaturating its content pipeline—questions remain about whether the company can navigate shifting consumer entertainment habits.
Still, there were bright spots. Disney+ turned a profit this quarter, adding 3.5 million new subscribers. The recent acquisition of Hulu added another 8.6 million to the platform’s user base. Streaming revenue rose 8% to $6.25 billion, with operating income up 39% to $352 million.
Despite these wins, the market appears skeptical of Disney’s long-term direction, particularly as traditional media loses ground and blockbuster strategies fail to deliver. Investors are watching closely to see if Disney’s next moves can restore momentum or if the brand will continue to face headwinds in a changing entertainment landscape.
