Here's our initial take on Walt Disney's (DIS 1.01%) first-quarter 2025 financial report.
Key Metrics
| Metric | Q1 2024 | Q1 2025 | Change | vs. Expectations |
|---|---|---|---|---|
| Revenue | $23.5 billion | $24.7 billion | 5% | Beat |
| Earnings per share | $1.22 | $1.76 | 44% | Beat |
| Cash provided by operations | $2.2 billion | $3.2 billion | 45% | n/a |
| Direct-to-consumer operating income | $138 million loss | $293 million | n/a | n/a |
Blockbusters and Streaming Power Quarterly Gains
Big box office numbers from Moana 2 and a third consecutive quarter of streaming profits helped fuel an earnings beat at Disney and provided evidence that CEO Bob Iger's plan to get the company back on track is sticking to his script.
The streaming business, home to Disney+, Hulu, and ESPN, was a real standout, reporting a $293 million profit compared to a loss of $138 million a year ago. Price increases during the period helped boost revenue, but despite the hike, Disney still showed modest growth in its number of Disney+ and Hulu subscribers.
Those strong numbers helped Disney to post a 31% gain in operating income and a 44% increase in cash from operations and helped drive a top- and bottom-line quarterly beat.
Elsewhere, sports segment operating income increased to $350 million on the strength of 15% higher domestic ESPN advertising revenue. That helped offset a 5-percentage-point decline in domestic parks and experiences operating income due to hurricane disruptions and cruise ramp-up expenses. Disney said that Hurricanes Milton and Helene had a $120 million impact on income.
NYSE: DIS
Key Data Points
Immediate Market Reaction
Disney's momentum is resonating with investors. Disney shares traded up 2% in the premarket action following the release of results but then gave back some of that gain.
What to Watch
In a statement, CEO Iger called the quarter "a strong start to the fiscal year," saying "we remain confident in our strategy for continued growth." Blockbuster movies don't come around every quarter, but Disney's transition to a streaming world is the top priority for the company right now, and investors will be eager to hear commentary about its growth and profitability outlook for the year to come.
There is also the question of succession. Iger is 73 and in his second stint as Disney CEO and needs to find his replacement by the end of 2026. That's still a long way away, but given the importance of getting the next hire right, any and all commentary on the process will be closely watched by investors.
