The Walt Disney 2025 Q3 Earnings Surpasses Expectations as Net Income Rises 109%

The Walt Disney Company reported Q3 2025 earnings on August 5, 2025. The company exceeded expectations with revenue growth and a significant jump in net income. It did not provide quantitative guidance for future periods but reiterated a focus on content development and global expansion.

Revenue

Walt Disney’s total revenue for the third quarter of 2025 rose by 2.1% to $23.65 billion, driven by strong performance across key business segments. The Entertainment division reported $10.70 billion in revenue, reflecting ongoing demand for content and distribution. The Sports segment contributed $4.31 billion, benefiting from live event coverage and sports rights. The Experiences segment, which includes theme parks and related operations, generated $9.09 billion, with domestic parks seeing a record quarter. Adjustments due to overlapping reporting in eliminations totaled $-448 million, but the overall revenue performance was a positive indicator of the company’s diverse business model.

Earnings/Net Income

Disney’s earnings per share surged 102.8% to $2.92 in Q3 2025, compared to $1.44 in the same period last year. This was matched by a net income increase of 109.1% to $5.94 billion, reflecting strong profitability across the company's operations. This significant EPS increase highlights the company’s effective cost management and revenue diversification.

Price Action

Despite the strong earnings report, Disney’s stock faced downward pressure in the short term. The stock declined 0.78% on the latest trading day, 1.33% for the week, and 4.58% month-to-date, indicating mixed investor sentiment in the near term.

Post Earnings Price Action Review

Following the earnings release, a strategy of buying Disney shares after a revenue increase and holding for 30 days yielded moderate returns of 6.95% annually but underperformed the broader market. The strategy had no maximum drawdown and a Sharpe ratio of 0.23, making it a low-risk, low-reward approach that may appeal to conservative investors.

CEO Commentary

CEO Bob Iger highlighted the company’s 2% revenue growth as a sign of momentum in Disney’s direct-to-consumer strategy. He emphasized the strength of the Parks, Experiences, and Products segment and noted the challenges in the advertising-driven Media and Entertainment segment. Iger also pointed to Disney+’s global expansion and new international content as key growth engines.

Guidance

Disney did not issue specific forward-looking revenue or earnings guidance for future periods in its Q3 2025 earnings report. However, the company reaffirmed its commitment to strategic investments in technology, content development, and global expansion, as well as its focus on operational efficiency and maintaining financial flexibility to navigate macroeconomic challenges.

Additional News

On August 6, 2025, Disney reported total Q3 revenue of $23.7 billion, a 2% increase from the $23.2 billion recorded in the same quarter of 2024 and a slight uptick from the $23.6 billion it earned in Q2 2025. The quarter ended on June 28, 2025. CEO Robert A. Iger expressed optimism about the company’s performance, noting major advancements in streaming, including the upcoming launch of ESPN’s direct-to-consumer service and new partnerships with the NFL. He also announced the integration of Hulu into Disney+ to create a more robust streaming offering. Domestically, the Experiences segment saw a 22% increase in operating income, with Walt Disney World setting a new record for the quarter. In conjunction with the earnings report, Disney announced it would no longer disclose quarterly streaming subscriber numbers and revealed a new partnership between ESPN and WWE. These developments mark a shift in strategy as Disney continues to build and differentiate its entertainment ecosystem globally.