Disney’s Q4 Earnings Show Flat Revenue For Fourth Quarter 2025

Disney’s Q4 Earnings Show Roughly Flat Revenue as TV Troubles Deepen and YouTube TV Blackout Drains $30 Million Per Week

The Walt Disney Company released its fourth quarter earnings for fiscal year 2025, and while the numbers technically fall into the “mixed results” category, one theme is impossible to ignore. Disney’s TV business continues to shrink, and the company is now knee-deep in its longest-ever carriage dispute: the blackout of Disney-owned channels on YouTube TV. The standoff is costing an estimated $30 million per week, and Disney has officially told investors it has no idea how long the blackout will continue.

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Quarterly Revenue: Basically Flat, and TV Is the Reason Why

Disney reported fourth quarter revenue of $22.46 billion, essentially identical to last year’s $22.57 billion. When a company Disney’s size stabilizes revenue instead of growing it, something big is happening behind the scenes. This time, that “something big” is TV.

Linear networks were down another 16 percent in revenue for the quarter and down 21 percent in operating income. Domestic advertising dropped due to declining viewership, the absence of political advertising, and a weaker programming slate.

Disney’s own wording in its filings summed it up: continued softness in traditional TV, coupled with weakening ad rates, weighed heavily on results.

If you’re thinking that this sounds like a story we’ve heard before, you’re not wrong. But the YouTube TV blackout has poured gasoline on the fire.

The YouTube TV Battle: Disney Confirms It “Cannot Predict” When It Will End

In a newly updated risk factor in its 10-K, Disney disclosed that its channels were removed from YouTube TV on October 30 after the companies failed to reach a new distribution contract. ESPN, ABC, FX, Disney Channel and more have now been dark on YouTube TV for two weeks, the longest blackout in Disney’s history.

And the update that raised eyebrows?

Disney told investors it “cannot predict how long this service blackout will last or reasonably estimate the adverse impact” on its operations.

Morgan Stanley estimates Disney is losing $30 million every single week the channels remain unavailable. That number includes lost affiliate fees and lost advertising tied to YouTube TV’s massive subscriber base.

So far, this is a double hit: TV is declining, and one of its most important distribution partners is offline. Disney also warned that several other distribution contracts expire in 2026, which means more blackouts are possible.

Sports Rights Costs Add Further Pressure

Disney also highlighted another challenge: sports rights fees are rising sharply, and there’s no guarantee that revenue from sports programming will exceed the cost of airing it.

For ESPN, already under strain from the blackout, these costs pose an additional long-term challenge. And with the new ESPN direct-to-consumer service launching in August, marketing and programming costs surged in Q4.

Entertainment Was Softer, but Streaming Did Its Job

Entertainment revenue fell 6 percent for the quarter, primarily because this year’s theatrical slate couldn’t compete with last year’s juggernauts like Inside Out 2 and Deadpool & Wolverine.

But there was a bright spot: streaming.

Direct-to-Consumer operating income rose 39 percent to $352 million. Disney+ and Hulu added over 12 million subscriptions combined, pushing their total to nearly 196 million. Those gains helped soften the blow from TV declines.

Parks and Experiences Brought the Pixie Dust (Again)

The Experiences division delivered a strong quarter with operating income rising 13 percent. Not only did domestic parks remain resilient, but Disneyland Paris and the international parks turned in strong results.

Disney Cruise Line also continued its growth streak following the launch of the Disney Treasure and the ramp-up toward two more ships in 2026.

Yet even with those gains, the strength of the parks wasn’t enough to fully outweigh the linear TV decline this quarter.

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So What Does This All Mean?

Disney’s Q4 was a tale of two businesses. Streaming and parks continue to grow reliably — a major win for fans dreaming of new attractions, lands, and cruise experiences. But TV, once the backbone of Disney’s financial engine, is shrinking faster than new revenue streams can replace it.

And the YouTube TV blackout is only making things harder. Disney doesn’t know when it will end. It doesn’t know how much the damage will total. And the company is losing tens of millions per week in the meantime.

Investors seemed relatively calm about the quarter overall, but as long as ESPN and ABC remain dark on one of the largest streaming TV platforms in the country, the pressure will only grow.