Shares of The Walt Disney Company (DIS) surged 9% Thursday morning as fourth-quarter revenue and adjusted profit topped analysts’ estimates and the entertainment giant laid out initial projections for the next three fiscal years.
Disney reported $22.57 billion in revenue, up from $21.24 billion last year and narrowly above the $22.50 billion analysts expected, according to Visible Alpha. It posted net income of $460 million, or 25 cents per share, well below estimates of $1.74 billion, or $0.96 per share.12
After accounting for about $1.5 billion in one-time charges like restructuring costs, Disney’s adjusted earnings per share (EPS) came in at $1.14, just above estimates of $1.11.
Disney said it expects high-single-digit adjusted EPS growth in fiscal 2025 and double-digit growth in fiscal 2026 and 2027, as well as an estimated $3 billion in stock buybacks over the next year. It also projects streaming services operating income to increase by $875 million next year from fiscal 2024, and Experiences segment operating income to grow by 6% to 8%, “weighted to the second half of the year.”
Streaming Profit Jumps To $321 Million.
Disney’s streaming business—comprised of Disney+, Hulu, and ESPN+— recorded an operating profit of $321 million after posting a combined profit for the first time last quarter at $47 million. Chief Executive Officer (CEO) Bob Iger said last quarter that Disney expects the services to “grow nicely in fiscal 2025.”
Following positive subscriber numbers from competitors like Warner Bros. Discovery’s (WBD) Max and Netflix (NFLX) in recent weeks, Disney said it gained 4.4 million Disney+ subscribers in the quarter.
Revenue in Disney’s Experiences segment, which includes its theme parks and cruise ships, was $8.24 billion, up slightly from $8.16 billion last year as slower discretionary spending from consumers has impacted the division in recent quarters.
Disney’s succession planning has also returned to focus after the company said last month that it plans to announce Iger’s replacement in early 2026. The Wall Street Journal reported Tuesday that the company is reviewing internal candidates along with a number of outside contenders for the job, including Andrew Wilson, CEO of Electronic Arts (EA).3
The Wall Street Journal. “Disney Explores Wider Field of Candidates to Succeed Iger.”
Disney shares jumped to $111.68 after markets opened, below their 2024 peak of $123.74 set on March 28 but up 23% year-to-date.
