Key Takeaways PSKY Q4 revenues of $48.14B and a 12 cent adjusted loss both missed consensus estimates.PSKY DTC revenues rose 10%, but TV Media sales fell 5% amid cord-cutting pressures.PSKY guided Q1 revenues of $7.15-$7.35B and reaffirmed $30B 2026 revenue target.Paramount Skydance Corporation (PSKY) reported fourth-quarter 2025 results, wherein both top and bottom lines missed the Zacks Consensus Estimate.The quarter was the company's first full period under the new management team of Chairman and CEO Dav ...

Warner Bros. Discovery (NasdaqGS:WBD) Q4 2025 Earnings call February 26, 2026 08:00 AM ET Speaker5Ladies and gentlemen, welcome to the Warner Bros. Discovery fourth quarter and full year 2025 earnings conference call. At this time, all participant lines are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Additionally, please be advised that today's conference call is being recorded. I would now like to hand the conference over to Mr. Peter Lee, Senior Vi ...

The Melrose gate of Paramount Pictures Studio in Hollywood. (Al Seib / Los Angeles Times ) Paramount Skydance is betting its future on its streaming business, as gains at the media and entertainment company's Paramount+ platform helped boost earnings for the fiscal fourth quarter of last year. On Wednesday, Paramount reported $8.1 billion in revenue for the three-month period that ended Dec. 31, up 2% compared to the previous year's quarter. That was because of growth in its streaming business, which saw ...

As Bob Iger prepares to hand over the reins to Josh D’Amaro, he leaves a legacy that includes snapping up the biggest brand names in Hollywood, expanding in China and building a booming streaming business https://t.co/Og2KNhFk5h ...

Core Insights - Walt Disney announced its fiscal first-quarter results ahead of the market's first trades of February, revealing respectable performance but an unfavorable initial reaction from shares [1] Financial Performance - Revenue rose 5% to $26 billion for the holiday quarter, slightly exceeding analysts' expectations of $25.6 billion, while adjusted earnings per share declined 7% to $1.63, which was better than the anticipated $1.58 [5] - The entertainment segment, which includes media networks, studios, and streaming operations, saw revenue growth of 7%, but experienced a 35% year-over-year drop in operating income, marking the worst performance among Disney's three segments [6] Segment Analysis - The streaming business reported a 72% surge in operating profit; however, overall profitability was impacted by higher production costs and the acquisition of a majority stake in Fubo, following the transfer of Hulu + Live TV to the operator [7] - The experiences segment, which includes theme parks, cruise lines, and consumer products, achieved a 6% revenue increase and was the only segment to deliver growth in operating profit, contributing 39% of the revenue mix and 72% of overall operating profit [8] - The sports segment, the smallest in terms of revenue and margins, saw a 1% revenue increase but a 25% decline in operating income due to rising programming and production costs [9]

Core Insights - Apple's services revenue grew approximately 15% year over year in fiscal Q4, outpacing the overall company revenue growth of 8% in the same period, indicating a strong performance in high-margin services [1] - The services segment, including Apple TV, is becoming a crucial growth engine for Apple, contributing significantly to the investment thesis for Apple stock [2] Group 1: Apple's Services Business - Apple's services gross margin was about 75% in fiscal Q4, compared to 36% for products, enhancing the overall profit profile as services grow faster than total revenue [1] - The company is leveraging its established business to treat streaming as a long-term strategy rather than a short-term competition, indicating a commitment to its streaming service [4] - Apple TV has seen record engagement, with total hours viewed in December 2025 rising 36% year over year, showcasing its growth potential [7] Group 2: Competitive Landscape - While Netflix remains the leader in streaming with over 300 million subscribers, Apple has unique advantages such as a cash-rich balance sheet and a complementary services ecosystem that can enhance its streaming offerings [6][10] - Apple's financial flexibility allows it to invest heavily in content and strategic partnerships, such as the five-year deal with Formula 1 to bring exclusive content to Apple TV [9][10] - Despite Netflix's strong performance, including a 17.2% revenue growth in Q3, Apple's structural advantages could position Apple TV as a significant competitor in the long run [12][14] Group 3: Strategic Advantages - Apple offers bundled subscriptions like Apple One, which combines Apple TV with other services, increasing distribution and subscriber retention [8] - The company's ability to make substantial investments in content without altering its overall risk profile gives it a competitive edge in the streaming market [14] - Engagement metrics for Apple TV are improving, suggesting that it could become a more formidable threat to Netflix over time [15]

Core Insights - The upcoming quarter for Disney is expected to be revealing, particularly regarding streaming numbers as the company fully commits to its streaming strategy, including Disney Plus, Hulu, and ESPN direct-to-consumer [2][4] Streaming and Revenue - The focus will be on new subscriber numbers for ESPN, which is seen as more significant than profit and revenue figures for this quarter [2] - Disney's all-in approach to streaming marks a pivotal moment for the company, indicating a shift in its business model [2] Leadership Speculation - There is ongoing speculation about the potential for co-CEOs at Disney, with internal candidates being considered for the roles [4][5] - The possibility of co-CEOs could address the dual needs of managing the business and overseeing creative aspects, which have been challenging in the past [5][6] Internal Candidates - The two leading internal candidates are Dana, the creative chief, and Josh, who oversees theme parks, both of which are critical components of Disney's operations [6][7] - There is a belief that these candidates could learn the other side of the business, suggesting flexibility in leadership roles [6][7] External Search Considerations - There are no current indications that the search committee is looking outside the company for CEO candidates, but this could change [8] - The need for a leader who understands both creative and technological aspects of the business is emphasized, especially in light of recent challenges in Hollywood [8][9] Technology and Media Convergence - The convergence of technology and traditional media companies is highlighted, with mentions of Amazon and Netflix exploring opportunities in the media landscape [10] - This trend suggests that any external search for leadership may lean towards candidates with a strong technology background [10]

Core Insights - Disney reported mixed fourth quarter results, with declines in linear TV business offsetting gains in parks and streaming as CEO Bob Iger's turnaround approaches its conclusion [1] Financial Performance - Revenue for the quarter was $22.46 billion, missing analyst expectations of $22.83 billion, and was roughly comparable to the previous year [2] - The entertainment division saw a 6% revenue drop, with linear network revenue falling 16% year over year and operating income dropping 21% due to cord-cutting and shifts in advertising [2][3] - Adjusted earnings per share (EPS) for the quarter were $1.11, exceeding the expected $1.07, though down 3% from $1.14 a year ago [4] Future Outlook - For fiscal 2026, Disney expects double-digit adjusted EPS growth from 2025 and plans to double its share repurchase target to $7 billion [5] - The company announced a $0.50 increase in its cash dividend to $1.50 [5] Streaming and Parks Performance - Disney+ added 3.8 million subscribers in the quarter, surpassing the expected 2.4 million [6] - The direct-to-consumer segment, including Disney+ and Hulu, reported a profit of $352 million, up from $253 million a year ago [6] - Disney is targeting approximately $375 million in streaming profits for Q1 2026 and plans to merge Disney+ and Hulu next year [7]

Financial Data and Key Metrics Changes - The company reported revenue in line with expectations for Q3 2025, with operating income impacted by a Brazilian tax matter, which would have exceeded forecasts otherwise [2][10] - Engagement metrics showed record share TV time in Q3 in both the U.S. and the U.K., indicating healthy engagement levels [2][19] Business Line Data and Key Metrics Changes - The advertising segment is on track to more than double ad revenue this year, with the best ad sales quarter ever recorded [2][10] - The company achieved its highest quarterly view share ever in the U.S. at 8.6% and in the U.K. at 9.4% [19] Market Data and Key Metrics Changes - The company is currently capturing only about 7% of the addressable market in terms of consumer spending, indicating significant growth potential [4] - The Brazilian tax issue is a unique cost of doing business, affecting the financials but not expected to have a material impact going forward [10] Company Strategy and Development Direction - The company aims to continue focusing on profitable growth and reinvesting in its core business while exploring selective M&A opportunities [36][37] - The strategy includes expanding original content and enhancing engagement through interactive features and gaming [42][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the business and the opportunities ahead, emphasizing the importance of competition in driving improvement [2][4] - The company is excited about its upcoming content slate for 2026, which includes returning popular series and new films [22][23] Other Important Information - The company is exploring the integration of high-quality video podcasts through a partnership with Spotify, aiming to broaden its entertainment offerings [24][25] - The company is also focused on enhancing its advertising capabilities and improving fill rates as it scales its ad suite [17][15] Q&A Session Summary Question: Health of the business and future opportunities - Management believes the business is healthy and sees significant opportunities ahead, with a focus on key initiatives and engagement metrics [2][4] Question: Nature of the Brazilian tax expense - The tax is a gross tax on outbound payments, not an income tax, and has been recorded as a component of cost of revenues [7][10] Question: Revenue and operating income growth for 2026 - Full year 2026 guidance will be provided in January, but the company aims to sustain healthy revenue growth and expand margins [11] Question: Advertising revenue growth - The company is on track to more than double ad revenue in 2025, with a strong growth trajectory expected [13][14] Question: Engagement metrics - Total view hours grew faster in Q3 2025 than in the first half, with significant cultural impact from key titles [19][20] Question: Live events impact - Live events like the Canelo Crawford fight have shown to attract mass audiences and positively impact acquisition and retention [29][30] Question: Industry consolidation and competitive landscape - Management views industry consolidation as an opportunity but emphasizes the importance of organic growth and selective M&A [36][37] Question: AI and content creation - The company sees AI as a tool to enhance creativity rather than replace it, focusing on leveraging AI for better storytelling [54][58]

Financial Data and Key Metrics Changes - The company reported revenue in line with expectations for Q3 2025, with operating income impacted by a Brazilian tax matter, which would have exceeded forecasts otherwise [2][10] - Engagement metrics showed record share TV time in Q3 in both the U.S. and the U.K., indicating healthy engagement levels [2][19] - The company is on track to more than double ad revenue this year, reflecting strong growth in the advertising segment [2][13] Business Line Data and Key Metrics Changes - The company achieved its best ad sales quarter ever, with significant growth in programmatic advertising, which is expected to contribute increasingly to revenue [2][13][14] - The live offerings and gaming segments are expanding, with notable events like the Canelo Crawford fight achieving record viewership [3][29] Market Data and Key Metrics Changes - In Q3 2025, total view hours grew faster than in the first half of the year, with the U.S. achieving a view share of 8.6% and the U.K. 9.4% [19][20] - The company continues to see a shift from linear viewing to streaming, which is expected to drive long-term growth [21] Company Strategy and Development Direction - The company sees significant growth potential, estimating it currently captures only about 7% of the addressable market in consumer spending [4] - The focus remains on improving core business areas, including content production and technology, to enhance competitive positioning [4][5] - The company is exploring partnerships and content diversification, including a recent deal with Spotify for video podcasts [24][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the business and the opportunities ahead, despite acknowledging the need for continuous improvement [2][4] - The company is optimistic about its growth trajectory in advertising and content engagement, with plans for a strong slate of releases in 2026 [11][21] Other Important Information - The Brazilian tax issue was clarified as a cost of doing business rather than an income tax, impacting the cost of revenues for Q3 [7][10] - The company is committed to maintaining its strategy of exclusive first-run movies on Netflix, with occasional theatrical releases for select films [26] Q&A Session Summary Question: Health of the business and future opportunities - Management believes the business is healthy and sees significant opportunities ahead, with a focus on key initiatives and engagement metrics [2][4] Question: Nature of the Brazilian tax expense - The tax is a gross tax on outbound payments, not specific to Netflix, and has been recorded as a cost of revenues due to a recent court ruling [7][10] Question: Revenue and operating income growth for 2026 - Full year 2026 guidance will be provided in January, but the company aims to sustain healthy revenue growth and expand margins [11] Question: Advertising growth expectations - The company is excited about doubling ad revenue in 2025 and sees room for further growth, particularly in programmatic advertising [13][14] Question: Engagement and content performance - Total view hours grew in Q3, with significant events driving engagement, and management believes in the importance of a steady slate of content [19][21] Question: M&A and industry consolidation - The company remains focused on organic growth but will evaluate M&A opportunities selectively, emphasizing the importance of building capabilities [36][39] Question: Impact of AI on content creation - Management sees AI as a tool to enhance creativity rather than replace it, with ongoing investments in AI technologies to improve productivity and innovation [52][54]