Disney reported its fiscal fourth-quarter earnings on Thursday, narrowly surpassing analyst estimates with the help of streaming growth that boosted its entertainment segment. The company’s streaming business expansion and profitability, along with a successful summer at the box office and continued investments in its theme parks business, are occurring amidst industry turmoil. Under the leadership of CEO Bob Iger, Disney has been restructuring its operations to prepare for a transition to a new CEO in early 2026.
Company executives highlighted Disney’s significant progress over the past year and expressed confidence in the long-term prospects of the business. They provided guidance for fiscal years 2025, 2026, and 2027, projecting high-single-digit adjusted earnings growth for fiscal 2025, and double-digit adjusted EPS growth for fiscal 2026 and 2027.
Disney’s stock rose over 9% in early trading following the earnings report. The company’s net income increased to $460 million, or 25 cents per share, compared to $264 million, or 14 cents per share, in the same quarter the previous year. Adjusted earnings per share were reported at $1.14 after accounting for one-time items. Overall revenue for Disney rose by 6% to $22.57 billion compared to the same quarter in the prior fiscal year.
The entertainment segment, which includes TV networks, streaming services, and films, saw revenue increase by 14% year over year to $10.83 billion, driven by a successful summer at the box office. Disney Pixar’s “Inside Out 2” and “Deadpool & Wolverine” were highlighted as top-grossing films, contributing to the segment’s nearly $1.1 billion profit.
Disney became the first film studio to surpass $4 billion globally in 2024, with upcoming releases like “Moana 2” and “Mufasa: The Lion King” expected to maintain momentum into the holiday season. The company anticipates double-digit percentage growth in operating income for its entertainment segment in fiscal 2025.
Disney’s streaming services, including Disney+, Hulu, and ESPN+, reported operating income of $321 million for the September period, a significant improvement from the previous year. The company noted growth in streaming subscribers and expressed confidence in the future growth potential of its streaming business.
While the traditional TV networks business experienced a decline, Disney’s experiences segment, which includes theme parks and consumer products, saw revenue growth. Theme parks faced challenges post-Covid, particularly in the U.S., but domestic parks’ operating income increased due to higher guest spending. International parks, however, saw a decline in attendance and guest spending, leading to a decrease in operating income.
Despite industry challenges, Disney’s experiences segment reported record full-year revenue and profit. The company expects 6% to 8% profit growth in the coming fiscal year, with some impacts expected from hurricanes and prelaunch costs for the Disney Cruise Line.
