Walt Disney Company Q4 and FY25 Earnings Report
Financial Results for the Quarter and Full Year:
• Revenues in Q4 of $22.5 billion were comparable to Q4 fiscal 2024, and increased 3% for the year to $94.4 billion from $91.4 billion in the prior year.
• Income before income taxes for Q4 increased to $2.0 billion from $0.9 billion in Q4 fiscal 2024, and increased to $12.0 billion for the year from $7.6 billion in the prior year.
• Total segment operating income(1) increased 12% for the year to $17.6 billion from $15.6 billion in the prior year.
• Diluted earnings per share (EPS) for Q4 increased to $0.73 from $0.25 in Q4 fiscal 2024. Adjusted EPS(1) decreased 3% for Q4 to $1.11 from $1.14 in Q4 fiscal 2024. For the year, diluted EPS increased to $6.85 from $2.72 in fiscal 2024, and adjusted EPS(1) increased 19% to $5.93 from $4.97 in fiscal 2024.
Key Points:
• Total segment operating income(1) decreased 5% for Q4 to $3.5 billion from $3.7 billion in Q4 fiscal 2024
• Entertainment: Full year segment operating income increased 19% to $4.7 billion. Q4 segment operating income of $691 million, a decrease of $376 million compared to the prior-year quarter, driven by theatrical slate comparisons. For Q4:
◦ Direct-to-Consumer revenue increased 8%, net of an adverse impact of 2 ppts as
Disney+ Hotstar was included in the prior-year quarter’s results
◦ Direct-to-Consumer operating income increased $99 million to $352 million
◦ At the end of the quarter, 196 million Disney+ and Hulu subscriptions, an increase of 12.4 million vs. Q3 fiscal 2025, and 132 million Disney+ subscribers, an increase of 3.8 million vs. Q3 fiscal 2025
◦ Linear Networks operating income declined $107 million vs. Q4 fiscal 2024 driven by the Star India transaction, as Star India contributed $84 million to results in Q4 last year
◦ Domestic Linear Networks operating income decreased due to lower advertising driven by decreases in viewership and political advertising (political advertising had a $40 million adverse impact on results vs. Q4 fiscal 2024)
◦ Content Sales/Licensing and Other declined $368 million vs. Q4 fiscal 2024, reflecting the record theatrical performances of Inside Out 2 and Deadpool & Wolverine in the prior-year quarter
Sports: Q4 segment operating income of $911 million, a decrease of $18 million compared to the prior-year quarter. For Q4:
◦ Domestic ESPN operating income declined 3% vs. the prior-year quarter, as higher marketing and programming and production costs were partially offset by higher advertising and subscription and affiliate revenues
◦ Domestic advertising revenue increased 8%
• Experiences: Record full year segment operating income of $10.0 billion, an increase of $723 million compared to the prior year. Record Q4 segment operating income of $1.9 billion, an increase of $219 million compared to the prior-year quarter. For Q4:
◦ International Parks & Experiences operating income grew 25% to $375 million
◦ Domestic Parks & Experiences operating income grew 9% to $920 million
Guidance and Outlook(1):
• Q1 Fiscal 2026:
◦ Entertainment:
▪ DTC SVOD operating income(2) of approximately $375 million
▪ Theatrical slate comparisons to drive an adverse impact to segment operating income of $400 million compared to Q1 fiscal 2025
▪ Lower political advertising revenue of $140 million compared to Q1 fiscal 2025
▪ Unfavorable comparison to $73 million of Star India operating income in Q1 fiscal 2025
◦ Experiences:
▪ $90 million in pre-opening expenses at
Disney Cruise Line, driven by the Disney Destiny and Disney Adventure
▪ $60 million in dry dock expenses at
Disney Cruise Line
• Fiscal Year 2026:
◦ Entertainment:
▪ Double digit percentage segment operating income growth compared to fiscal 2025, weighted to the second half of the year
▪ Operating margin of 10% for Entertainment DTC SVOD(2)
◦ Sports:
▪ Low-single digit percentage segment operating income growth compared to fiscal 2025, with growth weighted to Q4 reflecting the timing of rights expenses, which adversely impacts year-over-year comparability in Q2 and Q3
