Disney beat EPS estimates but missed revenue expectations, while Netflix posted 17.2% revenue growth and generated $2.66B in free cash flow. Disney’s profit margin of 13.1% is lower than Netflix’s 24%, and its return on equity of 12.2% trails Netflix at 42.9%.
Disney and Netflix reported quarterly earnings with Disney beating EPS estimates but missing on revenue. Disney’s direct-to-consumer segment grew revenue 8%, while Netflix posted 17.2% revenue growth driven by membership expansion and pricing adjustments.
Disney’s Parks & Experiences segment delivered 13% operating income growth and plans to invest $24 billion in content by fiscal 2026. Netflix operates with a singular focus and expects 17% revenue growth in Q4.
Disney must stabilize legacy media while scaling streaming, while Netflix aims to keep membership growing and prove advertising can scale. Each company presents a different approach to entertainment, with Disney’s diversified portfolio contrasting Netflix’s focused streaming model.
Read more at Yahoo Finance: Netflix Pulls Further Ahead While Disney Struggles to Stabilize Legacy Media
