Netflix Pulls Further Ahead While Disney Struggles to Stabilize Legacy Media

Walt Disney Company (NYSE: DIS) and Netflix Inc (NASDAQ: NFLX) reported quarterly net that exposed 2 amusement giants moving successful other directions. Disney bushed EPS estimates astatine $1.11 versus $1.05 expected but missed connected gross astatine $22.46 cardinal against $22.75 cardinal expected. Netflix met gross expectations astatine $11.51 cardinal portion missing connected EPS astatine $5.87 versus $6.97 expected, though a $619 cardinal Brazilian taxation quality skewed that number.

Disney's direct-to-consumer conception grew gross 8% connected subscription gains crossed Disney+ and Hulu. Streaming profitability present anchors the maturation story. But the Entertainment conception saw operating income illness 35% connected weaker contented licensing and continued erosion successful linear networks. CFO Hugh Johnston told CNBC the institution is "leaving the twelvemonth with a batch of momentum" successful streaming and experiences, yet the gross miss came straight from accepted media assets.

Netflix posted 17.2% year-over-year gross maturation driven by rank expansion, pricing adjustments, and what absorption called its champion advertisement income 4th ever. Operating borderline landed astatine 28%, which would person been higher without the Brazil taxation hit. The institution rolled retired a caller TV idiosyncratic interface to 85% of devices and integrated Amazon's demand-side level globally. Netflix achieved its highest quarterly presumption stock successful some the U.S. and U.K.

Disney's Parks & Experiences conception delivered 13% operating income growth. Management plans to put $24 cardinal successful contented crossed Entertainment and Sports successful fiscal 2026 and doubled the stock buyback people to $7 billion. CEO Robert Iger emphasized leveraging "the worth of our originative and marque assets" crossed a portfolio spanning taxable parks, cruises, linear TV, and streaming.