Burbank, California – Disney (NYSE: DIS) exceeded analyst expectations with its fiscal third-quarter earnings report released Wednesday, fueled by robust performance in its domestic theme parks and a significant turnaround in profitability for its streaming services.The company’s revenue aligned closely with projected forecasts.
The direct-too-consumer division, encompassing Disney+, Hulu, and ESPN+, reported a profit of $346 million, a considerable increase compared to the $19 million loss recorded in the same quarter last year. Disney leadership emphasized a continued commitment to sustained profitability within its streaming operations as traditional pay-television viewership declines. The company anticipates approximately $875 million in streaming profits for the full fiscal year 2025.
Disney increased its full-year profit guidance to $5.85 per share, a revision upwards from the $5.75 forecast provided in May, and surpassing the Wall Street consensus estimate of $5.77 per share. This positive outlook reflects the company’s strategic adjustments and operational improvements.
In a separate declaration preceding the earnings report, Disney confirmed a deal with the National Football League (NFL) wherein ESPN will acquire key NFL Media assets – including NFL Network, NFL RedZone, and NFL Fantasy – in exchange for a 10% equity stake in ESPN. This partnership aims to strengthen ESPN’s sports programming portfolio and capitalize on the growing demand for NFL content. The deal is subject to standard closing conditions.
Despite the positive earnings report and future outlook, Disney’s stock experienced a decline of approximately 2% in pre-market trading.This dip was attributed to significant revenue decreases in the company’s linear television networks, which offset the gains made in the parks and streaming sectors. The linear TV segment, which includes channels like ABC and ESPN, continues to face challenges from cord-cutting and shifting consumer habits.
