"Disney's direct-to-consumer segment grew revenue 8% on subscription gains across Disney+ and Hulu. Streaming profitability now anchors the growth story. But the Entertainment segment saw operating income collapse 35% on weaker content licensing and continued erosion in linear networks. CFO Hugh Johnston told CNBC the company is "leaving the year with a lot of momentum" in streaming and experiences, yet the revenue miss came directly from traditional media assets."
"Netflix posted 17.2% year-over-year revenue growth driven by membership expansion, pricing adjustments, and what management called its best ad sales quarter ever. Operating margin landed at 28%, which would have been higher without the Brazil tax hit. The company rolled out a new TV user interface to 85% of devices and integrated Amazon's demand-side platform globally. Netflix achieved its highest quarterly view share in both the U.S. and U.K."
Disney reported EPS of $1.11 versus $1.05 expected and revenue of $22.46 billion versus $22.75 billion expected. Direct-to-consumer revenue rose 8% on subscription gains across Disney+ and Hulu, and streaming profitability now anchors growth. Entertainment operating income fell 35% due to weaker content licensing and erosion in linear networks. Parks & Experiences operating income grew 13%. Management plans $24 billion in content spending for fiscal 2026 and raised the share buyback to $7 billion. Netflix reported $11.51 billion in revenue in line with expectations and EPS of $5.87, impacted by a $619 million Brazil tax dispute. Netflix revenue rose 17.2% led by membership, pricing, and strong ad sales, with operating margin near 28% and product upgrades including a new TV UI and Amazon DSP integration.
Read at 24/7 Wall St.
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