Disney and Palantir announced their latest quarterly results yesterday, just a few hours apart. Disney reported before the market opened, while Palantir released its numbers after the close.

DISNEY

We start with Disney, which delivered positive figures overall, yet the stock ended the day down 7.4%. Why did this happen? It is a classic case of a company winning the expectations battle but losing the narrative battle.

Let’s take it from the top. Adjusted EPS came in at $1.63, beating the consensus estimate of $1.57. Total revenue reached $26 billion, slightly above the $25.74 billion expected by the market. Net income, however, declined to $2.48 billion from $2.64 billion last year, mainly due to higher expenses.

This is where the issue lies. The individual segments of the group sent mixed signals.

In the Entertainment segment, revenue increased by 7%, but operating profit plunged by 35%. The main reasons were higher production and marketing costs, especially across film and streaming platforms.

The Sports segment performed even more weakly. Revenue grew by just 1%, while operating profit dropped by 23%. This was due to the temporary blackout on YouTube TV and new expensive agreements, such as the one with WWE.

Finally, the Experiences segment, arguably Disney’s most stable and profitable division, posted record revenue of $10 billion but only modest profit growth of 6%. This was driven by costs related to new projects, including the World of Frozen in Paris and the new Disney Cruise Line ship.

As if that were not enough, guidance for the second quarter added more pressure. Both JP Morgan and Wells Fargo commented that it was disappointing across the board. Disney is trying to convince investors that the future is bright, but the near-term outlook remains foggy.

From a strategic perspective, Disney continues to move methodically. The company has announced stock buybacks of $7 billion through 2026, expects double-digit growth in earnings per share, and forecasts $19 billion in operating cash flow.

All of this unfolds under the shadow of Bob Iger’s succession. The board is expected to make a decision within the first quarter of the year, with Josh D’Amaro and Dana Walden seen as the leading candidates. This choice will largely define the company’s future direction.

PALANTIR

We now turn to Palantir. The standout company of recent years reported earnings after the market close and completely exceeded expectations. The stock rose more than 6% in after-hours trading, and not without reason.

Earnings per share for the fourth quarter came in at $0.25, above estimates of $0.23. Total revenue reached $1.41 billion, surpassing the market expectation of $1.33 billion. Net income soared to $608 million, compared to just $79 million a year ago. That is nearly an eightfold increase.

This explosive growth came primarily from the US market. Total US revenue jumped 93%, with commercial revenue up 137% and government revenue up 66%. Palantir signed 180 contracts worth more than $1 million each, with 61 of them exceeding $10 million. Total contract value reached $4.26 billion, up 138%.

And it does not stop there. For 2026, Palantir forecasts revenue between $7.182 billion and $7.198 billion, while the market was expecting only $6.22 billion. Operating income is projected to exceed $4.1 billion, and free cash flow is expected to reach up to $4.125 billion.

CEO Alex Karp did not hold back. He stated that these are the best results he has seen in the technology sector over the past decade. He emphasized Palantir’s unique strategy of focusing on real-world applications of artificial intelligence rather than flashy demos. He also mentioned partnerships with organizations such as the Department of Defense, the Department of Homeland Security, and Nvidia.

Of course, there are also warning voices. Michael Burry, the well-known short seller, has taken a negative stance on both Palantir and Nvidia. Many investors believe Palantir’s valuation is excessively high. Still, management appears confident. “If you are not investing in this, you are not investing in the future,” Karp said.