Why did DIS's Q1 2025 earnings barely beat forecasts?

The Walt Disney Company's (DIS) Q1 2025 earnings exceeded forecasts with an EPS of $1.76, a 44% increase year-over-year, and revenue of $24.70 billion, a 5% increase year-over-year, indicating a robust performance in key segments. However, the company's DTC segment, which includes Disney+, Hulu, and ESPN+, was a significant contributor to the profitability, driven by price increases for its streaming services and successful film releases such as Moana 2.

Disney's Experiences segment also showed growth, with a 9% year-over-year increase in revenue to $9.4 billion, and flat operating income of $3.1 billion. The company's television animation studio was another bright spot, with the release of several successful films, including Raya and the Last Dragon and Big Hero 6: Monster vs. Monster.

On the other hand, Disney's television animation business experienced a decline, with a 12% decrease in revenue due to the timing of film releases and fewer television series pickups. Additionally, the company's television and studio businesses faced challenges, with a 1% decline in revenue due to political and economic uncertainty and a 2% decline in advertising revenue.

In conclusion, while Disney's Q1 2025 earnings exceeded forecasts, the company's performance was influenced by several factors, including successful film releases, price increases for its streaming services, and growth in its Experiences segment. However, challenges in its television animation business and television and studio businesses affected overall performance.