Disney has introduced a suite of AI-enhanced advertising tools aimed at improving advertiser outcomes across its streaming platforms during its Global Tech & Data Showcase at CES 2026 in Las Vegas. The initiative comes as Disney shares have risen 4.4% over the past year, underperforming compared to the S&P 500 and Zacks Consumer Discretionary sector.
Key developments include an AI-powered video generation tool for creating connected-TV ads leveraging existing assets, while Disney+ expanded its vertical video strategy to enhance user engagement. In fiscal Q4 2025, Direct-to-Consumer advertising revenues grew 8%, with operating income rising to $352 million. However, Disney’s Linear Networks faced declines in advertising revenue due to decreased viewership and a $40 million drop in political ad revenues.
Despite projected challenges in the first quarter of fiscal 2026, including a forecasted $140 million decline in political advertising, Disney plans a $24 billion content investment to attract high-value ads, particularly from live sports and major events. The Zacks Consensus Estimate predicts earnings of $6.60 per share for fiscal 2026, reflecting an 11.3% growth year-over-year.
