Shares of The Walt Disney Company experienced a 9% rise on Thursday morning following the release of their fourth-quarter financials, which exceeded analysts' expectations. Disney reported revenue of $22.57 billion, up from last year's $21.24 billion and slightly ahead of the predicted $22.50 billion. Net income, however, was a modest $460 million, or 25 cents per share, considerably lower than expected.
Disney's adjusted earnings per share (EPS) reached $1.14, after taking into account $1.5 billion in unique costs such as restructuring. This narrowly surpassed expectations of $1.11. Disney's future projections predict continual high-single-digit EPS growth until 2025, double-digit growth until 2027, and $3 billion in stock buybacks over the next year.
The company's streaming services, including Disney+, Hulu, and ESPN+, are predicted to increase operating income by $875 million next year. This follows their first-ever combined profit last quarter of $321 million, a significant increase from the previous $47 million. Disney added 4.4 million Disney+ subscribers during the quarter, keeping up with competitors such as Warner Bros. Discovery’s Max and Netflix.
Revenue from Disney's Experiences segment, including theme parks and cruise ships, has suffered due to a dip in discretionary consumer spending. However, its revenue still saw slight growth to $8.24 billion, up from $8.16 billion last year.
The company is also now focusing on succession planning as it prepares to announce the replacement for current CEO Bob Iger in early 2026. Disney's share price rose to $111.68 following the news, a 23% year-to-date increase.