The Walt Disney Company announced its fiscal third quarter results for the period ending June 28, surpassing earnings expectations but falling slightly short on revenue.
The company saw growth in its streaming and theme park segments, though challenges persisted in its traditional TV business.
Key Financials
- Adjusted Earning Per Share: $1.61 vs. $1.47 expected
- Revenue: $23.65 billion vs. $23.73 billion expected
Entertainment Segment:
- Streaming: Revenue grew 6% to $6.18 billion, driven by Disney+ adding 1.8 million subscribers, reaching nearly 128 million. Hulu subscribers increased 1% to 55.5 million. Disney projects modest Disney+ subscriber growth in Q4, with combined Disney+ and Hulu subscriptions expected to rise by over 10 million.
- Traditional TV (Linear Networks): Revenue fell 15% to $2.27 billion, with operating income down 28% to $697 million, impacted by lower viewership and advertising rates across networks like ABC and FX.
- Sports Segment (ESPN): Domestic revenue grew 1% to $3.93 billion, but operating income dropped 7% to $1.01 billion due to higher programming costs, particularly for NBA and college sports rights. ESPN announced a deal on August 5, 2025, giving the NFL a 10% stake in the company. Additionally, ESPN’s full-service streaming app is set to launch on August 21, 2025, featuring WWE live events on both the app and linear network.
- Experiences Segment: Revenue increased 8% to $9.09 billion, with domestic theme park revenue up 10% to $6.4 billion, fueled by higher guest spending, increased cruise passenger days, and resort stays.
Disney’s streaming business continues to prioritize profitability, with subscriber growth supporting its DTC segment. The experiences segment benefited from robust consumer demand, while the traditional TV business faced ongoing declines. The upcoming ESPN streaming app and strategic NFL partnership signal Disney’s push toward diversified sports offerings.
Key streaming subscriber trends for Disney’s direct-to-consumer (DTC) platforms, along with context from prior quarters and projections:
Disney+: Q3 2025: Added 1.8 million subscribers, reaching nearly 128 million globally.
Comparison: In Q2 2025, Disney+ added 1.4 million subscribers, bringing the total to 126 million, surpassing estimates of 123.35 million. The Q3 growth reflects continued momentum, though at a slightly higher rate.
Comparison: In Q2 2025, Disney+ added 1.4 million subscribers, bringing the total to 126 million, surpassing estimates of 123.35 million. The Q3 growth reflects continued momentum, though at a slightly higher rate.
Outlook: Disney expects a “modest increase” in Disney+ subscribers for Q4 2025 compared to Q3.
Hulu: Q3 2025: Subscribers grew 1% to 55.5 million.
Comparison: In Q2 2025, total Disney+ and Hulu subscriptions reached 180.7 million, indicating Hulu’s contribution was around 54.7 million. The 1% growth in Q3 suggests steady but slower expansion.
Outlook: Combined Disney+ and Hulu subscriptions are projected to increase by over 10 million in Q4 2025, implying stronger growth for Hulu alongside Disney+.
ESPN+: Specific Q3 2025 subscriber figures for ESPN+ were not detailed in the provided data. However, in Q2 2025, ESPN+ was part of the DTC segment, which reported $336 million in operating income, up from $47 million the prior year, driven by subscriber growth and advertising revenue.
Context: ESPN’s upcoming full-service streaming app, launching August 21, 2025, with WWE live events and an NFL partnership (10% stake announced August 5, 2025), suggests a strategic push to boost ESPN+ subscribers in future quarters.