Streaming Beats Expectations, Subscriber Growth Returns
Disney+ posted a net gain of 1.4 million subscribers during the quarter, bringing the total to 126 million globally—topping Wall Street’s forecast of 123.35 million. The company had previously guided for a decline. The direct-to-consumer business posted an 8% revenue increase year over year to $6.12 billion, fueled by higher subscription numbers and price hikes. Looking ahead, Disney expects a modest increase in Disney+ subscribers in the current quarter.
Strong Results Across Business Segments
Total company revenue rose 7% year over year to $23.62 billion, above the $23.14 billion consensus. Adjusted earnings per share came in at $1.45 versus $1.20 expected. Net income improved dramatically, reaching $3.28 billion versus a $20 million loss in the prior-year quarter.
The entertainment division, which includes TV, streaming, and film, posted 9% revenue growth to $10.68 billion. While “Snow White” and “Captain America: Brave New World” underperformed, strong contributions from “Moana 2” and “Mufasa: The Lion King” supported licensing and content sales. Linear TV continued to lag, with revenues down 13% to $2.42 billion.
ESPN Boosts Sports Revenue with Key Broadcasts
The sports segment, led by ESPN, saw a 5% revenue rise to $4.53 billion thanks to increased ad revenue from airing additional College Football Playoff and NFL games. The company now expects 18% operating income growth for the segment in fiscal 2025, up from its prior forecast of 13%.
Parks, Cruises, and Consumer Products Lifted by Domestic Strength
Disney’s experiences business saw revenue rise 6% to $8.89 billion, bolstered by a 9% jump at domestic parks to $6.5 billion. International parks dipped 5% to $1.44 billion. Cruise revenue also grew with the debut of the Disney Treasure. Consumer products revenue rose 4% to $949 million, lifted by licensing tied to the new “Marvel Rivals” video game.
Market Forecast: Bullish on Continued Momentum
Disney’s solid beat on earnings and revenue, combined with a surprise gain in Disney+ subscribers and improved full-year EPS guidance, signals strong operational momentum. With segment-wide growth—especially in streaming and sports—and upwardly revised forecasts, the stock outlook remains bullish in the near term. Traders will be watching subscriber trends and content performance closely, but for now, the upside case is in control.
