Here's why Disney stock is crashing today

Core Viewpoint - Walt Disney's shares fell 8% following mixed fourth-quarter results, with revenue of $22.5 billion missing Wall Street's estimate of $22.83 billion, primarily due to a 6% decline in the entertainment division [1][2] Financial Performance - Revenue for the fourth quarter was $22.5 billion, missing estimates by $0.33 billion [1] - Linear network revenue decreased by $107 million compared to the previous year, and operating income fell by 21% due to reduced ad spending [1] - Adjusted earnings per share (EPS) were $1.11, exceeding the forecast of $1.07 but down from $1.14 a year earlier [4] Advertising and Viewership - Domestic TV networks experienced lower ad revenue linked to weaker viewership, including a $40 million loss in political advertising compared to the same quarter last year [2] - The weak theatrical performance added further pressure on revenue [2] Streaming Business - Disney+ gained 3.8 million new subscribers in the last quarter, contributing to a profit of $352 million in the direct-to-consumer segment, up from $253 million the previous year [4] - The management is targeting approximately $375 million in profit for the first quarter of fiscal 2026 and plans to merge Disney+ and Hulu next year [5] Theme Parks and Experiences - The experiences division, including theme parks and resorts, reported a 6% revenue increase year-over-year in Q4, although results were slightly below forecasts [5] - Full-year operating income for the experiences division rose by 13%, with expectations for profit growth in the high single digits next year [5]