The Walt Disney Company reported its third quarter earnings for fiscal 2025 earlier today, highlighting strong results driven by continued growth in its Experiences segment. Total revenue reached $23.7 billion, a 2% increase over the same period last year.
Message from CEO Bob Iger:
“We are pleased with our creative success and financial performance in Q3 as we continue to execute across our strategic priorities. The company is taking major steps forward in streaming with the upcoming launch of ESPN’s direct-to-consumer service, our just-announced plans with the NFL, and our forthcoming integration of Hulu into Disney+, creating a truly differentiated streaming proposition that harnesses the highest- caliber brands and franchises, general entertainment, family programming, news, and industry-leading sports content. And we have more expansions underway around the world in our parks and experiences than at any other time in our history. With ambitious plans ahead for all our businesses, we’re not done building, and we are excited for Disney’s future.“
Theme Parks Continue to Deliver
Disney’s Experiences segment, which includes theme parks, Disney Cruise Line, and consumer products, generated $9.1 billion in revenue for the quarter, an 8% increase over Q3 2024.
- Operating income climbed 13% to $2.5 billion.
- Domestic Parks & Experiences led the growth with $1.7 billion in operating income, a 22% increase year over year, driven by higher per-capita guest spending, stronger ticket yields, and increased hotel occupancy at Walt Disney World and Disneyland Resort.
Walt Disney World reached an all-time high for Q3 revenue, driven by strong demand and longer guest stays.
- Bookings were up 4% compared to the prior year, including increased interest in multigenerational and extended family vacations, with booking growth ranging from 14% to 25%.
- Despite broader economic pressures, guest loyalty and continued demand for Disney’s domestic resorts fueled the quarter.
In its executive commentary, Disney made a brief reference to the newly opened Universal Epic Universe park: “We are pleased with these results and encouraged by the continued resiliency of our domestic parks business, particularly at Walt Disney World, despite increased competition in the Orlando market.”
Streaming
Disney’s direct-to-consumer streaming segment, which includes Disney+, Hulu, and ESPN+, reported increased profits.
- The segment posted $346 million in operating income for the quarter, reversing losses seen in prior years.
- Total global subscribers rose to 183 million, with Disney+ adding 1.8 million new subscribers and Hulu gaining 900,000.
- Revenue for the segment increased 6% to approximately $6.1 billion, driven by price adjustments and improved subscriber retention.
Entertainment and Sports Update
The Entertainment segment experienced a 15% decline in operating income, totaling just over $1 billion.
- The drop was attributed to a lighter theatrical release schedule (versus last year’s blockbuster, Inside Out 2) and reduced licensing performance compared to last year.
- In contrast, the Sports segment posted a 29% increase in operating income, also reaching around $1 billion. The improvement came from favorable comparisons, stable domestic ad revenue, and growth in sports rights value.
Disney also announced two major sports deals: a strategic partnership with the NFL, in which the league will take a 10% stake in ESPN in exchange for NFL Media assets including RedZone and NFL Network, and a multiyear agreement with WWE that makes ESPN the exclusive U.S. home for WWE premium live events starting in 2026.
Looking Ahead
Disney plans to launch a new ESPN direct-to-consumer streaming service on August 21. The service will include multiple pricing tiers starting at $11.99 per month, with bundling options that include Hulu and Disney+. The company anticipates strong subscriber growth in Q4, bolstered by a distribution deal with Charter Communications that is expected to add more than 10 million new Disney+ and Hulu customers.
For the full fiscal year, Disney raised its adjusted earnings per share forecast to $5.85, an 18% increase from 2024. The company now expects its streaming business to deliver $1.3 billion in operating income for the year, while operating income from the Experiences segment is projected to grow 8%.
