Disney Stock Tumbles 8% Amid Weak Q4 Outlook and Ad Revenue Decline
Disney shares plummeted over 8% to $106.56 after reporting mixed fourth-quarter results. Revenue remained flat at $22.5 billion, while adjusted earnings per share dipped 3% to $1.11. Despite record highs in parks and streaming profitability, weaker entertainment performance and political ad declines dragged on earnings.
The company's theatrical slump and linear TV headwinds overshadowed full-year growth. Cost controls lifted pre-tax income to $2.0 billion, but segment operating income fell 5% to $3.5 billion. Disney maintains cautious guidance but projects double-digit EPS growth through 2027.