Disney Earnings Call 2025: Streaming Surge & Parks Profit—Key Takeaways for Investors

The Walt Disney Company (NYSE: DIS) surprised Wall Street in its fiscal third-quarter 2025 earnings call, reporting stronger-than-expected revenue and announcing aggressive growth plans across parks, streaming, and sports. Parks & Experiences power headline growth Disney’s Parks, Experiences and Products segment generated $2.5 billion in operating income—up 13 percent year over year—as domestic parks posted a 22 percent jump, cruise bookings hit record levels, and per-guest spending rose despite inflationary headwinds. CEO Bob Iger told investors the company now has “more expansions underway around the world than at any point in our history,” singling out projects in Orlando, Anaheim, Paris and Shanghai. Streaming finally turns profitable Direct-to-Consumer (Disney+, Hulu, Star+) delivered $346 million in operating profit, reversing last year’s loss, on 6 percent higher revenue and net subscriber additions of 2.6 million. Disney+ ended the quarter with 128 million subscribers and management guided to “double-digit” DTC operating-income growth in FY 2026 as Hulu fully integrates into the Disney+ app later this year. The company also reiterated its target of 10 million new Hulu and Disney+ subs next quarter, aided by the recently completed Charter distribution deal. Sports segment swings higher ahead of standalone ESPN app Operating income at the Sports segment climbed 30 percent to $1 billion, largely because the $314 million Star India drag is now gone. While ESPN’s U.S. affiliate revenue slid, live-sports ad sales rose 3 percent on higher NBA and NHL pricing. Management confirmed that the direct-to-consumer ESPN service will launch “no later than fall 2026,” and revealed a fresh multiyear rights pact with the NFL. Company-wide numbers and outlook • Total revenue: $23.7 billion, +2 percent YOY • Adjusted EPS: $1.61, +16 percent YOY • Free cash flow: $3.8 billion, used to retire $3.6 billion in debt • FY 2025 adjusted EPS guidance: $5.85 (+18 percent) Management sees “mid-single-digit” park attendance growth even as Universal’s Epic Universe opens in Orlando next year, forecasting 8 percent operating-income growth for Experiences and high-teens growth for Sports. CFO Hugh Johnston cautioned that cruise-ship pre-opening costs will shave roughly $185 million from Q4 profit. Key takeaways for investors and park fans • Parks remain the profit engine, funding streaming break-even and new IP attractions. • Streaming profitability and ESPN DTC clarity reduce long-term cash burn fears. • Debt reduction gives Disney flexibility for acquisitions or a dividend restart, hinted at for FY 2026. Shares of DIS rose more than 4 percent in after-hours trading as analysts praised the company’s “clean quarter” and clearer path to double-digit earnings growth.