What caused Disney's operating income to rise in 2025?

Disney's operating income rose in 2025 due to several key factors:

1. **Strong Performance in Direct-to-Consumer (DTC) Segment**: The DTC segment contributed significantly to earnings growth, generating $300 million in operating income. This growth can be attributed to successful box office releases and the company's strategic focus on streaming. Disney+ added 4.4 million core subscribers last quarter, excluding the lower-priced Disney+ Hotstar service in India.
2. **Successful Box Office Releases**: Notable films like Moana 2 and Mufasa: The Lion King had outstanding global box office performances, which helped drive operating income at Content Sales/Licensing and Other. Disney's studios also received critical success, with eight Oscar nominations, including Searchlight Pictures' A Complete Unknown.
3. **Integration of ESPN with Disney+**: The addition of an ESPN tile on Disney+ enhanced the company's digital strategy and improved the profitability of the Sports segment, which reported an operating income of $247 million. This integration leveraged the success of film franchises, such as Moana, which approached $1.7 billion at the global box office.
4. **Strategic Investments in Experiences Segment**: The Experiences segment demonstrated its enduring appeal as Disney continued to invest strategically across the globe, reflected in the segment's operating income. Despite challenges from wage increases and preopening expenses for new cruise lines, the segment's revenue climbed 3% year-over-year to $9.42 billion.

In summary, Disney's operating income rise in 2025 was driven by strong performance in its DTC segment, successful box office releases, strategic integration of ESPN with Disney+, and continued investments in its Experiences segment.