Company Reports

Experiences and streaming drove Disney's 7% fiscal third-quarter sales growth and operating margin expansion of 3 percentage points versus the prior year. Free cash flow ($3 billion) remained strong amid the experiences investment cycle, and the firm is putting more cash into share repurchases.

With heavy investment and good execution in parks and experiences and streaming, Disney has transitioned its business so that the ongoing, swift decline in traditional pay television is no longer a critical threat to the company. Its diverse portfolio of successful businesses sets it apart from its traditional media peers.

With heavy investment and good execution in parks and experiences and streaming, Disney has transitioned its business so that the ongoing, swift decline in traditional pay television is no longer a critical threat to the company. Its diverse portfolio of successful businesses sets it apart from its traditional media peers.

Disney had a fantastic fiscal second quarter. It sees no sign of consumer weakness and expects experiences growth to accelerate. Total sales grew 6.5% year over year. Preliminary costs to support new experiences and higher programming costs led to a 50-basis-point contraction in operating margin.

With heavy investment and good execution in parks and experiences and streaming, Disney has transitioned its business so that the ongoing, swift decline in traditional pay television is no longer a critical threat to the company. Its diverse portfolio of successful businesses sets it apart from its traditional media peers.

Disney's drawn-out search for Bob Iger's successor has finally ended, with an anticipated choice. Experiences chairman Josh D'Amaro will take over as CEO on March 18. Importantly, the other frontrunner, entertainment co-chair Dana Walden, will stay with the firm as chief creative officer.

Disney's 5% year-over-year revenue growth and a 9% decline in operating income were driven by strong results in the areas most critical to the firm's future: experiences, streaming, and sports. Entertainment profit outside streaming declined 55%, and negative free cash flow was mostly due to timing.

Disney agreed to license many of its animated characters to OpenAI for that firm's Sora users to create short-form videos using artificial intelligence. Disney can include those videos on Disney+. It is becoming an OpenAI customer, and it is making a $1 billion investment in Open AI.

With heavy investment and good execution in parks and experiences and streaming, Disney has transitioned its business so that the ongoing, swift decline in traditional pay television is no longer a critical threat to the company. Its diverse portfolio of successful businesses sets it apart from its traditional media peers.

Disney's stock fell substantially after the firm reported a 0.5% year-over-year decline in fiscal fourth-quarter revenue. The weakness was entirely in linear entertainment networks and theatrical films. Results in parks and experiences, streaming, and sports were encouraging, as is the 2026 outlook.

Nexstar and Sinclair have both chosen to preempt Jimmy Kimmel Live indefinitely in response to the show's return on Sept. 23. They will instead air local programming during the show's time slot.

Disney has made a lot of news, and further transformation of its business is imminent, but fiscal third-quarter results weren't particularly notable. Strong experiences growth and the upward trend in streaming profits countered lackluster sports results and streaming sales.

We believe Disney is successfully navigating the evolution from a media industry driven by linear television networks bundled by pay-TV distributors to one reliant on streaming services. We don’t think the new media landscape will ever be as profitable as the prior one, but Disney’s brands, deep ownership of valuable intellectual property, and diversity in its business make it best positioned among the legacy media companies to thrive in the modern era. Disney is focusing on streaming, sports, and experiences as it manages a continually declining linear television business.

We believe Disney is successfully navigating the evolution from a media industry driven by linear television networks bundled by pay-TV distributors to one reliant on streaming services. We don’t think the new media landscape will ever be as profitable as the prior one, but Disney’s brands, deep ownership of valuable intellectual property, and diversity in its business make it best positioned among the legacy media companies to thrive in the modern era. Disney is focusing on streaming, sports, and experiences as it manages a continually declining linear television business.

Disney's fiscal second quarter was spectacular in virtually every aspect. Most importantly, experiences grew revenue and operating income 6% year over year with even stronger results domestically, and management expects a stronger second half. Streaming continues to grow and become more profitable.

Disney's stock has gotten punished amid US tariff announcements and strained relations with foreign countries. Tariffs shouldn't have much of a direct impact on Disney, but Disney would be especially sensitive to a resulting economic slowdown and chilled US tourism.

We believe Disney is successfully navigating the evolution from a media industry driven by linear television networks bundled by pay-TV distributors to one reliant on streaming services. We don’t think the new media landscape will ever be as profitable as the prior one, but Disney’s brands, deep ownership of valuable intellectual property, and diversity in its business make it best positioned among the legacy media companies to thrive in the modern era. Disney is focusing on streaming, sports, and experiences as it manages a continually declining linear television business.

Most US media and entertainment stocks sold off with the rest of the market. Notable companies that dropped as much or more than the broad market were Disney, Live Nation, Warner Bros. Discovery, and Roku.

Disney's fiscal first-quarter revenue grew 5% year over year, while operating profit grew 38%. Achievement of streaming profitability, strong movie releases, and strength in sports drove the profit gains. Streaming subscribers were roughly flat as the firm continues fine-tuning its offering.

We believe Disney is successfully navigating the evolution from a media industry driven by linear television networks bundled by pay-TV distributors to one reliant on streaming services. We don’t think the new media landscape will ever be as profitable as the prior one, but Disney’s brands, deep ownership of valuable intellectual property, and diversity in its business make it best positioned among the legacy media companies to thrive in the modern era. Disney is focusing on streaming, sports, and experiences as it manages a continually declining linear television business.