Disney’s fiscal third-quarter earnings report released today, August 6, 2025, reveals a company that’s not just stabilizing but accelerating. With streaming finally turning profitable, theme parks outperforming expectations, and a confident upward revision in full-year guidance, the entertainment titan is showing signs of a well-executed pivot in a rapidly evolving media landscape.
Key Takeaways from Q3 FY2025
- Adjusted earnings per share reached 1.61 dollars, beating analyst expectations of 1.47 dollars
- Total revenue came in at 23.65 billion dollars, slightly below the projected 23.73 billion
- Net income surged to 5.26 billion dollars, more than doubling year-over-year
- Disney+ added 1.8 million subscribers, bringing the total to nearly 128 million
- Hulu subscriptions rose to 55.5 million, including 4.3 million Live TV users
- Streaming segment posted a profit of 346 million dollars, reversing a 19 million dollar loss from the same period last year
- Theme parks saw increased guest spending and higher attendance
- Full-year adjusted EPS guidance raised to 5.85 dollars, up from 5.75 dollars
Streaming Turns the Corner
Disney’s direct-to-consumer segment, which includes Disney+ and Hulu, delivered a standout performance this quarter. Revenue for the segment rose 6 percent to 6.18 billion dollars, and operating profit hit 346 million dollars—marking a sharp turnaround from the 19 million dollar loss in Q3 FY2024.
Disney+ added 1.8 million subscribers, pushing its total to nearly 128 million. Hulu also saw modest growth, reaching 55.5 million subscribers, with 4.3 million opting for Live TV. The company expects a combined subscriber increase of over 10 million in the current quarter.
The profitability boost is attributed to higher subscription revenue, rate increases, and reduced programming costs, especially compared to last year’s ICC cricket coverage on Disney+ Hotstar.
Theme Parks Rebound with Strong Guest Spending
Disney’s Experiences segment, which includes theme parks and resorts, saw a notable uptick in both revenue and operating income. Increased guest spending and higher attendance contributed to the growth, helping offset softness in other areas of the business.
The parks had previously faced uneven performance, but this quarter’s results suggest a strong rebound. The division’s performance exceeded Wall Street expectations and played a key role in Disney’s overall earnings beat.
Entertainment Segment Faces Mixed Fortunes
While the entertainment division saw a 1 percent revenue increase to 10.7 billion dollars, it was weighed down by a 15 percent decline in traditional TV revenue. Theatrical releases underperformed compared to last year’s blockbuster Inside Out 2, with titles like Elio, Thunderbolts, and Lilo & Stitch failing to match prior box office highs.
The segment swung to a 21 million dollar loss, largely due to higher film cost impairments and weaker box office results. However, streaming gains helped cushion the blow.
ESPN and Sports Division Make Strategic Moves
Disney’s sports arm, ESPN, made headlines with two major announcements: the launch timeline and pricing for its new standalone streaming service, and the acquisition of the NFL Network. Domestic advertising revenue rose 3 percent, and overall sports profit surged 29 percent to 1 billion dollars, despite a 5 percent dip in total revenue.
Disney’s restructuring of its India operations in late 2024 continues to impact financials, but the company expects stabilization in the coming quarters.
Outlook: Confidence Amid Complexity
Disney’s raised guidance for fiscal 2025 reflects growing confidence in its diversified revenue streams. The company now expects adjusted EPS of 5.85 dollars, an 18 percent increase from FY2024. This revision follows strong performance in streaming and parks, even as traditional media faces headwinds.
CEO Bob Iger emphasized cautious optimism, noting macroeconomic uncertainties but reaffirming Disney’s strategic direction. With streaming now a profit center and parks rebounding, the company appears well-positioned for sustained growth.
Sources: CNBC, Deadline, TheWrap
