Disney Projects Higher Earnings, Doubles Buyback Target For 2026: Why Is The Stock Falling Today?

• Disney announced that it is doubling its share repurchase target to $7 billion for 2026.
• The company declared a cash dividend of $1.50 per share, payable in two installments.
• Domestic Linear Networks' operating income decreased due to lower advertising.

Walt Disney Co. (DIS) announced on Thursday that the company anticipates double-digit growth in adjusted earnings per share for fiscal 2026, and highlighted that it is doubling its share repurchase target to $7 billion.

Additionally, the company declared a cash dividend of $1.50 per share, payable in two installments of $0.75 per share, on Jan. 15, 2026, and Jul. 22, 2026.

Fourth-Quarter Performance 

Disney posted $22.5 billion in revenue for the quarter, marking flat growth compared with the same period last year, while earnings per share (EPS) nearly tripled year-on-year (YoY) to $0.73. 

While revenue fell short of the analysts’ consensus estimate of $22.78 billion, EPS exceeded the estimate of $1.02, according to Fiscal AI data. 

Following the Q3 earnings result, Walt Disney’s stock traded over 3% lower in Thursday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. Message volume improved to ‘extremely high’ from ‘high’ levels in 24 hours. 

Operating Income Decline

Operating income for the Entertainment segment decreased 21% YoY, dragged down by a decline in linear network and content sales. 

Domestic Linear Networks' operating income decreased due to lower advertising driven by decreases in viewership and political advertising.

Disney’s Sports division, anchored by ESPN, recorded a $911 million operating income for the quarter, slightly lower than last year, as higher programming costs offset stronger advertising revenue. 

The company ended the quarter with 196 million Disney+ and Hulu subscriptions.  

The company’s Parks and Experiences segment continued to outperform, reporting an operating income of $1.9 billion for the quarter and $10 billion for the year, driven by double-digit growth at international parks and solid U.S. attendance.

DIS stock has gained over 4% in 2025 and over 13% in the last 12 months. 

Also See: Comcast’s NBCUniversal Revives NBCSN In Sports Cable Comeback: Report

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