Disney+ Hits 126M Subs, Iger Optimistic About Outlook

Disney’s streaming business saw a significant increase in operating profit for the first quarter of 2025, driven by a surprising addition of 1.4 million subscribers to Disney+. This growth comes at a time when economic challenges are looming, but Disney remains optimistic about its financial outlook for the current fiscal year.

In terms of financial performance, Disney reported a revenue of $23.62 billion, marking a 7% increase from the previous year. The company also posted a net income of $3.28 billion, a significant improvement from a net loss of $20 million in the same period last year. Adjusted earnings per share stood at $1.41, showing a 20% increase and surpassing Wall Street’s expectations.

Looking ahead to fiscal year 2025, Disney anticipates adjusted earnings per share of $5.75, a 16% year-over-year growth. The company also expects cash provided by operations to reach $17 billion, up from $14 billion in fiscal 2024. This positive outlook is driven by a deferral of tax payment and projected double-digit increases in operating income for the entertainment and sports segments, as well as growth in the theme park and consumer products business.

Despite the encouraging results, Disney is mindful of the potential impact of macroeconomic developments on its operations. The company acknowledges the uncertainty in the operating environment for the remainder of the fiscal year, which ends in late September 2025. However, CEO Bob Iger remains upbeat about Disney’s trajectory, emphasizing the company’s success in building for growth and executing strategic priorities.

Investors are keen to hear more insights from Disney’s leadership team on how the company plans to navigate challenges such as global tariffs and economic downturns. In the latest quarter, Disney’s performance exceeded analyst expectations, with Disney+ and Hulu experiencing subscriber growth and increased revenue.

Disney’s domestic linear TV business saw a decline in revenue but improved profitability due to cost-saving measures. ESPN reported a revenue increase but a decrease in operating income, attributed to higher costs associated with additional sports programming. The Content Sales/Other business in the entertainment segment saw a significant improvement in operating profit, driven by higher revenue from theatrical distribution and home entertainment.

In the experiences segment, which includes theme parks and consumer products, Disney reported a 6% revenue increase and a 9% growth in operating profit. Despite a decline in international theme park revenue, the domestic parks and experiences and consumer products segments showed strong performance.

Overall, Disney’s diverse business segments contributed to its positive financial results for the quarter. With a robust content slate and ongoing expansion projects, Disney is well-positioned to continue its growth trajectory in the coming months.