Quick overview

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Disney posted revenue of approximately $25.2 billion, marking a year-over-year increase of nearly 7%. Adjusted earnings per share came in at $1.57, above Wall Street forecasts.

The strong performance prompted a positive market reaction, with the stock rising around 8% in trading.

Streaming Becomes the Key Growth Engine

One of the standout drivers was the direct-to-consumer segment. Streaming platforms, including Disney+ and Hulu, saw a sharp improvement in profitability, with operating income rising roughly 88%.

The improvement was fueled by higher subscription prices, stronger advertising revenue, and continued user growth.

Parks and Experiences Remain a Strength

The “Experiences” division—covering theme parks, cruises, and merchandise—also posted solid growth. Results were supported by higher visitor spending and resilient demand in the U.S., although international tourism showed some softness.

ESPN Faces Pressure

The weakest spot in the report remained the sports segment, including ESPN, where operating income declined about 5% due to rising rights and production costs.

First Results Under New Leadership

This earnings release also marks the first under new CEO Josh D’Amaro, who took over in March following Bob Iger’s departure.

D’Amaro outlined a strategy centered on three pillars: expanding content investment, scaling global reach, and leveraging technology to better monetize Disney’s intellectual property.

He also emphasized making Disney+ the core platform for customer engagement, a shift that was well received by investors.