Yahoo Finance·2025-12-04 17:57Core Insights - Disney and Netflix reported contrasting quarterly earnings, with Disney beating EPS estimates but missing revenue expectations, while Netflix met revenue expectations but missed EPS due to a tax dispute [2][7]. Financial Performance - Disney's EPS was $1.11, exceeding the expected $1.05, but revenue was $22.46 billion, below the anticipated $22.75 billion [2][7]. - Netflix's revenue reached $11.51 billion, meeting expectations, but EPS was $5.87, missing the expected $6.97 due to a $619 million tax issue in Brazil [2][4]. Revenue Growth - Disney's direct-to-consumer segment saw an 8% revenue increase driven by subscription growth in Disney+ and Hulu, but the overall revenue growth was -0.5% year-over-year [3][5]. - Netflix experienced a 17.2% year-over-year revenue growth, attributed to membership expansion, pricing adjustments, and strong ad sales [4][5]. Operating Margins - Disney's operating margin was 11.9%, significantly lower than Netflix's 28.2% [5][7]. - Disney's profit margin stood at 13.1%, nearly half of Netflix's 24% [7]. Strategic Focus - Disney's Parks & Experiences segment achieved a 13% growth in operating income, and the company plans to invest $24 billion in content by fiscal 2026 while increasing its share buyback target to $7 billion [6]. - Netflix is focusing on expanding its user interface and integrating advertising platforms, achieving its highest quarterly view share in the U.S. and U.K. [4][6].