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Wise investor
@wise_investor · Aug 6

🎬 Disney surprises with steady growth!
In the third quarter of fiscal year 2025, Disney $DIS proved solid results. The company reported year-over-year revenue growth of 2 % to $23.65 billion, with net earnings per share (EPS) rose to $2.92, more than double last year's figure. Adjusted EPS was $1.61, up 16 % up 16% from last year.

The biggest driver was the Experiencessegment - that is, parks, cruise ships and entertainment. Operating profit of USD 2.52 billion (+13 %) and sales of USD 9.09 billion (+8 %) confirms that people want experiences they can remember. The Easter season and strong domestic demand have also helped (+22% operating profit for US parks).

📺 Streaming heads into profit
Disney+ and Hulu together attracted 2.6 million new subscribers. Direct-to-consumer segment (Direct-to-Consumer) turned a profit of $346 million for the first time in a long time .The loss was USD19 million compared to a loss of USD 19 million last year . USD. Sales here grew by 6 % to $6.18 billion.

By contrast, traditional TV is dragging down - linear networks -15 % revenue, down due to the end of Hotstar streaming in India and weaker licensing. The Entertainment segment recorded a year-on-year decline in operating profit of 15 % to $1.02 billion.

🏟️ ESPN is going strong
The Sports segment achieved an operating profit of USD 1.04 billion (+29 %). Despite rising rights costs (NBA, college sports) a 7% decline in ESPN' s profitability in the US, the overall result improved thanks to lower losses in India.

Major news:
Starting in 2026, ESPN will exclusively air all WWE content , including WrestleMania.

Disney enters strategic partnership with NFL, buys NFL Network in exchange for 10%NFL' s stake in ESPN. This could mean a major realignment of forces in US sports broadcasting .

2026 will also be a key year for the MCU (Marvel Cinematic Universe)when they plan to release several new movies from popular titles (Avengers: Doomsday, Spider-Man: Brand New Day).

💵 Robust cash flow.

Free cash flow +53 % 1.89 billion USD

Operating cash +41 % USD 3.67 billion

This gives the company room for further expansion, investment and return of capital to investors.

The stock responds with a drop of more than 2%!

What do you think of Disney? Do you use Disney+?

A community member's personal view, not investment advice. Community Guidelines

BC
Bill Combs @billcombs Aug 8

I had the shares but eventually sold them and moved the money elsewhere. The performance hasn't been ideal and overall I don't find the sector interesting anymore.

WI
Wise investor @wise_investor Aug 8

Where did you move the money? What performance is optimal for you at the company? Didn't even Netflix tempt you?

GP
Gareth Preston @gaz_preston Aug 7

It's a great company and the stock is still pretty undervalued. The main upside is yet to come.

WI
Wise investor @wise_investor Aug 7

Do you have Disney stock in your portfolio?

NT
Nigel Thornton @_thornton Aug 7

The company is doing well, but the big competitor is Netflix. I'd like to buy $NFLX stock, but the price would have to be lower.

WI
Wise investor @wise_investor Aug 7

For Disney+ for sure, but for Disney as a whole I like the diversification of the business see parks, cruise ships and movies for large audiences of different age groups.

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