It may come as a surprise, but The Walt Disney Company beat analysts’ earnings expectations in its most recent financial quarter. Still, its revenue numbers came in below expectations. The entertainment behemoth’s total income jumped 2% to $23.65 billion. This milestone signals an exciting new chapter in its continued recovery from hurricanes and other calamities over the last few years. This is the first time since May 2024 that Disney’s revenue has missed analyst forecasts, raising questions about the company’s performance across its various segments.
Disney’s DTC streaming business remained a bright spot in an otherwise disappointing quarter, as streaming revenue jumped 6% to $6.18 billion. This increase indicates that people are continuing to turn to Disney+ and Hulu. Hulu continues to benefit from this strength, as its total subscribers grew by 1% to 55.5 million. While streaming revenue grew, the segment nonetheless lost $21 million this quarter alone. That’s a dramatic change from the $254 million operating income they posted in the same quarter last year.
The company’s theme park division has been one of the brightest areas of the companies portfolio, leading the way as the strongest rebounding division. Domestic theme park revenue was up an incredible 10%, totaling $6.4 billion. This growth was largely a result of increased consumer spending at parks, combined with an uptick in passenger cruise days and resort stays. This comeback further showcases Disney’s ability to capture the anticipation and excitement for their attractions and experiences.
Disney’s media division is still struggling, largely due to pressure from its legacy linear TV operations. The legacy Pay TV market had a double-digit revenue drop of 15% for the first time ever, down to $2.27 billion. This drop is emblematic of a broader trend in the consumption of content, with digital platforms increasingly preferred over traditional linear television.
Besides some smaller releases, some particularly big titles were released during the quarter, such as “Elio,” “Thunderbolts” and “Lilo & Stitch.” Operating income for the entertainment unit jumped 7%, to $2.26 billion. This explosive growth is an exciting demonstration that newer, original content still draws in consumers, despite the struggles of legacy TV.
Disney CFO Hugh Johnston underscored Disney’s multifaceted approach to growth during his company’s call. He stressed that the segment-by-segment success raises all profits tide, increasing total earnings growth. This declaration demonstrates a dedication to supporting established media while creating spaces for developing digital technology.