Shares of The Walt Disney Firm (NYSE: DIS) had been down over 2% on Wednesday after the corporate delivered combined outcomes for the third quarter of 2025. The highest and backside line numbers grew versus the prior yr, however whereas earnings surpassed analysts’ estimates, income fell quick. In the meantime, Disney has laid out some main plans to drive development throughout its companies which offer ample optimism for the long run.
Q3 outcomes
Disney’s revenues elevated 2% year-over-year to $23.7 billion in Q3 2025. GAAP earnings per share greater than doubled to $2.92 in comparison with final yr. Adjusted EPS rose 16% YoY to $1.61. Whereas earnings beat expectations, revenues missed.
Enterprise efficiency and plans
In Q3, Disney’s Leisure phase revenues rose by 1% in comparison with the earlier yr. In its motion pictures enterprise, the corporate noticed development throughout its in style manufacturers and franchises which prolonged into its streaming enterprise as effectively. The success of flicks like Lilo & Sew and Moana 2 has pushed the viewership of their unique variations and prequels on Disney+. DIS can also be seeing robust engagement for collection like Gray’s Anatomy and Household Man on its streaming platform.
Disney plans to combine Hulu into Disney+ to spice up its streaming providing by bringing collectively its in style franchises, basic leisure, information and stay sports activities content material in a single app. This transfer is anticipated to supply subscribers with a variety of selections in a handy and customized method whereas additionally serving to the corporate develop its earnings and margins by driving larger engagement, decreasing churn, and producing income from promoting.
DIS ended the quarter with 183 million Disney+ and Hulu subscriptions, which was up 2.6 million sequentially. Disney+ ended Q3 with 128 million subscribers, up 1.8 million sequentially, helped by worldwide development.
Within the fourth quarter of 2025, Disney expects its whole Disney+ and Hulu subscriptions to extend by greater than 10 million in comparison with the third quarter. The vast majority of the rise is anticipated to return from Hulu on account of the expanded Constitution deal. The corporate anticipates a modest improve in Disney+ subscribers in This fall in comparison with Q3.
Income within the Sports activities phase decreased 5% in Q3. The corporate plans to launch its ESPN+ streaming service in August. It has additionally entered into an settlement with NFL to increase its content material providing on its sports activities streaming platform.
The Experiences phase noticed income development of 8% within the quarter. Disney has expansions happening in all its theme parks worldwide with new points of interest. It is usually increasing its cruise line with the launch of two new ships, which can deliver its whole fleet to eight cruise ships.
Outlook
For the complete yr of 2025, DIS expects earnings, on an adjusted foundation, to be $5.85 per share, which represents a rise of 18% from the earlier yr.
