Key Points:
- Disney beat earnings estimates, driven by streaming and theme parks.
- Disney+ turned profitable, adding 1.8 million subscribers.
- Traditional TV declined, while ESPN and new streaming ventures gained traction.
The Walt Disney Company reported better-than-expected earnings for its fiscal third quarter, supported by strong growth in its streaming and theme park divisions. The results, released Wednesday, August 6, 2025, show how Disney is successfully navigating a challenging media environment while pivoting toward digital and experiential revenue streams.
Despite a slight miss on revenue, Disney’s robust performance in streaming and consumer experiences helped offset continued declines in its traditional television business.
Streaming Turns Profitable, Disney+ Adds 1.8 Million Subscribers
Walt Disney direct-to-consumer segment, led by Disney+, posted an operating income of $346 million—a significant turnaround from a loss during the same quarter last year. The company added 1.8 million Disney+ subscribers in the quarter, bringing the total to nearly 128 million. Hulu subscriptions rose 1% to 55.5 million.
CEO Bob Iger’s earlier push to prioritize profitability over subscriber count appears to be bearing fruit. Revenue for the streaming division rose 6% to $6.18 billion, marking a steady shift away from past losses. Disney also raised its operating income forecast for the streaming unit to $1.3 billion for fiscal year 2025.
Looking ahead, Disney expects combined Disney+ and Hulu subscriptions to grow by more than 10 million in the fourth quarter.
Theme Parks and Experiences Segment Posts Record Numbers
Disney’s Parks, Experiences and Products division reported an 8% year-over-year revenue increase, totaling $9.09 billion for the quarter. Domestic parks led the way, with a 10% jump to $6.4 billion, attributed to increased guest spending and strong attendance.
Notably, Walt Disney World in Orlando saw its biggest third quarter ever, according to CFO Hugh Johnston. He highlighted continued consumer strength, saying, “Our consumer is doing very, very well.”
International parks also performed well, with revenue rising 6% to $1.7 billion. Disney’s expansion into the UAE with a planned park and resort in Abu Dhabi marks a new growth frontier, though it is separate from the company’s existing $60 billion global theme park investment plan.
Linear TV Declines Continue, ESPN Pushes Toward Streaming
While streaming and parks flourished, Disney’s traditional TV networks continued to struggle. Revenue from linear networks, including ABC and FX, fell 15% to $2.27 billion, with operating income dropping 28% to $697 million due to declining ad revenue and viewership.
In contrast, ESPN showed resilience. Domestic revenue increased slightly to $3.93 billion, though operating income dipped 7% to $1.01 billion due to higher programming costs. ESPN announced a deal this week giving the NFL a 10% stake in the sports network and confirmed the August 21 launch of its new streaming app, which will include WWE live events.
Johnston described the new app as “accretive to overall earnings growth,” underscoring Disney’s commitment to streaming-first strategies across its entertainment and sports holdings.
Financial Overview and Outlook
For the quarter ended June 28, Disney reported adjusted earnings per share of $1.61, exceeding the $1.47 expected by analysts. However, total revenue reached $23.65 billion, just below the projected $23.73 billion. Net income more than doubled to $5.26 billion from $2.62 billion a year ago, buoyed in part by tax benefits from Disney’s acquisition of Comcast’s Hulu stake.
The company raised its full-year adjusted EPS guidance to $5.85, up from a prior estimate of $5.75, an 18% increase over fiscal 2024.
Despite ongoing headwinds in traditional media, Disney’s financials indicate a company in transition, with streaming and experiences leading the charge into a new era.
