“It was only a couple of years ago that we were losing a billion dollars a quarter on that business”- CFO Hugh Johnston

On Wednesday August 6th, 2025 The Walt Disney Company published its reports on the Third Quarter 2025 earnings that ended on June 28th, 2025. “We are pleased with our creative success and financial performance in Q3 as we continue to execute across our strategic priorities,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company.

A “Stream”lined Quarter

Revenues increased 2% for Q3 to $23.7 billion from $23.2 billion in Q3 fiscal 2024

• Income before income taxes increased 4% for Q3 to $3.2 billion from $3.1 billion in Q3 fiscal 2024
• Total segment operating income(1) increased 8% for Q3 to $4.6 billion from $4.2 billion in Q3 fiscal 2024
• Diluted earnings per share (EPS) for Q3 improved to $2.92 from $1.43 in Q3 fiscal 2024, and adjusted EPS(1) increased 16% for Q3 to $1.61 from $1.39 in Q3 fiscal 2024

Above: The Walt Disney Company Earnings Graphic for 2025 Q3.

Streaming & Direct-to-Consumer

Disney’s DTC segment including Disney+, Hulu, and ESPN saw a major turnaround: revenue climbed 6%, and operating income rose to $346 million from a loss the prior year. Combined subscriber count reached 183 million, up 2.6 million from Q2, with Disney+ contributing 128 million of that number.

Parks & Cruises, Excitement and Thrills Ahead

This segment delivered strong results: operating income increased by 8%, supported by domestic parks’ strength (also up 13%) and cruise line advances.

Major Scores with Sports

While sports revenue dipped about 5%, operating income surged 29% to $1.04 billion. Largely thanks to favorable comparisons to prior year provisions and operational efficiencies. Disney also struck a mega deal with the NFL, acquiring NFL Network and RedZone in exchange for giving the league a 10% stake in ESPN. Further, beginning in 2026, Disney finalized a mega $1.6 billion deal with TKO Group Holdings, parent of WWE and UFC, to stream WWE Premium Live Events like: WrestleMania and SummerSlam — exclusively on ESPN+. While its assumed that it will stream on ESPN+, Disney has not confirmed final distribution plans or whether the deal will trigger a price increase for subscribers.
This strategy shows a larger shift in media consumption, where monthly memberships are replacing traditional channel packages. But the transition comes not without loss: in Q3, Disney’s legacy TV business continued to sink, with Linear Networks revenue down 15% to $2.77 billion and operating income falling 28% to $1.12 billion as cord cutting accelerates.

Above: WWE Headquarters located in Stamford, CT. Photo by AbhiSuryawanshi on Wikimedia Commons. The above photo is released under a Creative Commons Attribution 4.0 International license.

A Positive Outlook

Disney raised its full-year adjusted EPS guidance to 5.85%, an 18% increase over last year. Management expects to add more than 10 million new Disney+ and Hulu subscribers in Q4, helped by a new distribution deal with Charter Communications. If Q3 2025 showed anything, its that Disney is finding its stride: profitable streaming, booming parks, and bold plays in sports.

Above: WWE NXT Match in Orlando, FL