What Should Investors Expect as Disney Shares Fall?

Disney's Latest Quarterly Results and Investor Interest

The Walt Disney Company (NYSE:DIS) shares fell approximately 4% to around $112 in pre-market trading following the media giant's fiscal fourth-quarter results announcement. The company reported a non-GAAP earnings per share of $1.11 for the quarter ending September 28, with revenue coming in at $22.46 billion. While these results exceeded analysts' earnings expectations, the revenue figure remained in line with mixed expectations. Additionally, free cash flow decreased by 37%, dropping to $2.56 billion.

The company indicated a decline in entertainment revenue, while sports and experiences reported modest gains. Total segment operating income reached $3.48 billion; here, entertainment revenue faced a downturn, while experiences and sports provided stronger contributions, highlighting the uneven performance within the portfolio.

Disney+ platform's core subscriber count increased by 2.4% to 131.6 million, with average revenue per paid subscriber recorded at $8.04. The company announced that it would no longer disclose subscriber numbers and average revenue per user details in the future; this change reduces investors' visibility in tracking flow trends.

Management emphasized the expected improvement in cash flow by fiscal year 2026, while also warning that theater and distribution pressures may affect results in the near term. Investors will closely monitor guidance and content plans, as well as how distribution agreements will evolve.