Disney's Q3 Earnings Surge 100% on Theme Parks, Streaming Growth

Disney reported a significant increase in profits and revenue for the third quarter of its 2025 fiscal year, driven by strong performances in its theme parks and a surge in streaming subscribers. The company's earnings for the three months ending June 28 amounted to 52.6 billion dollars, or 2.92 dollars per share, compared to 26.2 billion dollars, or 1.43 dollars per share, in the same period last year. Adjusted earnings per share stood at 1.61 dollars, surpassing analyst expectations of 1.46 dollars per share. Total revenue for the quarter was 236.5 billion dollars, slightly below the 236.8 billion dollars anticipated by analysts.

The entertainment segment, which includes film studios and streaming services, saw a modest 1% increase in revenue. However, the experiences segment, encompassing theme parks, cruises, merchandise sales, and video game licensing, reported an 8% rise in revenue. This segment's operating income grew by 13% to 25.2 billion dollars, with domestic parks contributing a 22% increase in operating income. International parks and experiences, however, saw a 3% decline in operating income.

Disney's direct-to-consumer business, which includes Disney+ and Hulu, reported an operating income of 3.46 billion dollars for the quarter, compared to an operating loss of 19 million dollars in the same period last year. This segment's revenue grew by 6%. Disney+ added 2 million subscribers internationally, excluding Disney+ Hotstar, bringing the total to 128 million subscribers globally. The combined subscriber base for Disney+ and Hulu reached 183 million, an increase of 2.6 million from the previous quarter.

The company's theme parks, which include six global locations, continue to be a significant revenue driver. Disney announced plans to build its seventh theme park in Abu Dhabi, further expanding its global footprint. Despite these successes, Disney is actively seeking a successor to its long-serving CEO, who has been a pivotal figure in the company for over two decades. The search for a new CEO began in earnest last year, with the company forming a succession planning committee and hiring external consultants to assist in the process. The current CEO has agreed to extend his contract until the end of 2026, providing the company with ample time to find a suitable replacement.