The Walt Disney Company, or Disney, is a top American entertainment company. It was founded on October 16, 1923, by Walt Disney and his brother Roy. It began as a small animation studio called Disney Brothers Cartoon Studio. Over time, Disney became famous for family entertainment, creating beloved characters like Mickey Mouse and expanding into movies, TV shows, theme parks, and more.
Today, Disney is a global leader in the entertainment industry, owning big names like ABC, ESPN, Pixar, Marvel, Lucasfilm, and National Geographic. The company continues to grow and innovate, providing a wide range of content and experiences that captivate audiences around the world.
Walt Disney Fiscal Q3 2025
Walt Disney (DIS) released modest growth in the third quarter of 2025.
Revenue rose 2% year-over-year to $23.7 billion, slightly above expectations. Income before taxes grew 4% and operating income across all segments increased 8% to $4.6 billion.
Disney’s diluted earnings per share saw a substantial boost, climbing to $2.92 from $1.43 a year ago. Adjusted EPS also improved, rising 16% to $1.61 from $1.39, outperforming forecasts and reflecting strong operational execution.
Highlights
Entertainment segment:
- Total operating income was $1 billion, down $179 million compared to Q3 fiscal 2024
- Direct-to-Consumer revenue rose 6%, though impacted by Disney+ Hotstar adjustments
- Disney+ and Hulu had 183 million subscribers, up by 2.6 million from Q2 fiscal 2025. Disney+ alone had 128 million subscribers, up 1.8 million from Q2
- Linear Networks operating income fell $269 million due to the Star India transaction
- Content Sales and Licensing dropped $275 million compared to strong Inside Out 2 performance last year
Sports segment:
- Sports operating income reached $1 billion, up $235 million year-over-year
- Star India loss of $314 million last year boosted the current year’s comparison
- ESPN operating income declined 7% due to higher NBA and college sports costs
- Domestic sports advertising revenue grew 3%
Experiences segment:
- Segment operating income was $2.5 billion, up $294 million from Q3 2024
- Easter holiday timing added about $40 million, while Cruise Line pre-opening costs reduced by $30 million
- Domestic Parks & Experiences income rose 22% to $1.7 billion
Outlook
Disney expects to add over 10 million new Disney+ and Hulu subscribers in Q4 fiscal 2025, mainly driven by Hulu’s expanded deal with Charter, while Disney+ will see modest gains.
For the full year, adjusted EPS is projected at $5.85, up 18% year-over-year. Key segments; Entertainment, Sports, and Experiences are set to deliver strong operating income growth, with Direct-to-Consumer Entertainment generating $1.3 billion.
The company anticipates $185 million in pre-opening costs for Disney Cruise Line and a $200 million equity loss from its India joint venture due to accounting amortization.
Boards Statements
Robert A. Iger, CEO of The Walt Disney Company, highlighted significant advances in streaming, including the upcoming launch of ESPN’s direct-to-consumer service, a new partnership with the NFL, and the planned integration of Hulu into Disney+. Iger emphasized that this combination will offer a unique and compelling streaming experience featuring premium brands, family content, general entertainment, news, and top-tier sports programming.
He also pointed out that Disney is undergoing its most expansive growth in parks and experiences globally. Iger affirmed the company’s strong momentum and enthusiasm for its future.
Impact on the Stock Market
Disney’s stock is facing pressure despite posting stronger-than-expected Q3 earnings and revealing a major ESPN-NFL deal.
Although earnings came above expectations, the stock fell around 3%, reflecting investor focus on longer-term challenges.
Revenue from traditional TV networks dropped by 15%, and operating income from that segment fell 28%, signaling a continued drag from linear media.
Meanwhile, the ESPN-NFL partnership gives Disney access to the NFL Network, RedZone, and NFL Fantasy, while handing the NFL a 10% equity stake in ESPN. This move bolsters ESPN’s streaming potential, but it’s more strategic than immediately profitable. These are keeping investor sentiment subdued.
