In a challenging time in the kids media biz, Disney managed to pull off what’s quickly becoming one of the hardest feats for companies of any size: maintaining the status quo. The company’s Q4 and full-year 2025 results, released today, paint a picture of a media conglomerate that managed small revenue gains year over year, but had a tricky final quarter. 

Analyzing the financial report, statements and transcript call, here are a few key highlights:

Q4 revenue: US$22.4 billion, which is down very slightly from US$22.5 billion in Q4 2024

Full-year revenue: US$94.4 billion, up by 3% from US$91.3 billion last year

How Disney+ did: The streamer ended this quarter with 131.6 million subscribers worldwide, an increase of 3.8 million over Q3. Hulu and Disney+ combined had 196 million subscribers (a 12.4-million bump). 

Entertainment: Quarter to quarter, this segment was down 6% to US$10.2 billion. But year over year, it was up 3% to US$42.4 billion. 

DTC and content sales climbed while linear struggled: For the full year, the company’s linear channel revenue was down 12% to US$9.3 billion. But DTC was up 8% to US$24.6 billion, and content sales/licensing/other was up 10% to US$8.4 billion.

Experiences sees a little growth: For the full year, this segment was up 6% to US$36.1 billion. 

The biggest hit: Disney touted the success of Lilo & Stitch (pictured)—which was the second-biggest live-action premiere ever on Disney+, with more than 14 million views after its first five days on the streamer. Retail sales for the film’s consumer products for the full year surpassed US$4 billion. 

Kids films on the way: Walt Disney Studios has made more than US$4 billion at the box office for four consecutive years now, and its 2026 slate includes a few films that could help the studio do it again, including Lucasfilm’s The Mandalorian and Grogu, Pixar’s Toy Story 5, the live-action Moana pic and Marvel Studios’ Avengers: Doomsday. 

What to watch for in Q1: Disney expects to take a US$400-million hit in its entertainment segment compared to the same quarter in 2025, largely because there will be fewer theatrical releases, and they might not match the success of Moana 2 and Mufasa: The Lion King. Plus, marketing Avatar: Fire and Ash will trigger some higher spend. 

Upping its content spend: Disney expects to spend roughly US$24 billion on content in fiscal 2026, a US$1 billion increase from the year before.

AI UGC: On the earnings call, Disney CEO Bob Iger teased that Disney+ users will eventually be able to use AI to make their own short-form user-generated content and consume the UGC made by others.

Succession speculation: Iger is set to remain at Disney until the end of 2026, when his already-extended contract ends. After the turbulent period following Iger’s previous departure—when he was succeeded by Bob Chapek—speculation about who will lead the kids & family media giant this time will only continue to ratchet up. (Many kids industry players think Disney Entertainment co-chair Dana Walden is the most likely heir apparent.)