Disney posts mixed quarter as cable struggles and YouTube TV blackout weigh on results

ORLANDO, Fla. - Disney’s fourth-quarter results show the company pulled in opposite directions. 

It was mixed with a weaker performance from cable and the box office somewhat offset by strength in its streaming business and theme parks.

What we know:

The entertainment giant reported stronger earnings in its streaming and theme park divisions, with direct-to-consumer operating income rising to $352 million and Disney+ subscriptions increasing to 132 million. 

But its traditional TV networks struggled, with operating income from linear networks down 21% and revenue down 16%, driven in part by the Star India transaction and a continued decline in advertising and viewership. 

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Films released this quarter — including "The Fantastic Four: First Steps," "The Roses" and "Freakier Friday" — underperformed compared with last year’s slate boosted by "Deadpool & Wolverine" and lingering receipts from "Inside Out 2."

What we don't know:

It remains unclear how long the dispute between Disney and YouTube TV will last. Executives said negotiations over a new licensing deal could "go on for some time," but provided no timeline for restoring channels like ESPN to millions of subscribers. 

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Uncertainty also lingers around the long-term impact of subscriber cancellations following ABC’s brief suspension of "Jimmy Kimmel Live!" after the host’s comments on the death of conservative activist Charlie Kirk.

The backstory:

The quarter unfolded amid industry-wide turbulence, including declining cable viewership, a weakening box office, and heightened competition in streaming. 

Disney had previously projected strong fourth-quarter subscriber gains for Disney+ and Hulu — anticipating more than 10 million additions — especially following its expanded deal with Charter. 

While those increases largely materialized, the company is still navigating reputational and operational fallout from the Kimmel-related cancellations.

What they're saying:

Disney Chief Financial Officer Hugh Johnston signaled that the company intends to stay the course despite industry chatter surrounding consolidation.

"We’ll see how the various moves play out," he said. "But we like the hand that we have right now. So I wouldn’t expect us to participate in making any significant moves." 

The company reaffirmed its long-term earnings targets and emphasized confidence in its existing portfolio.