Disney has become a controversial business, though, embroiled in political and social debates that have been a distraction from its best-in-class properties and fan-favorite entertainment franchises. Bob Iger made a return to the CEO position in late 2022 after a brief retirement.
However, value-seeking investors may appreciate the extent to which Disney's top and bottom lines have made a meaningful recovery in recent financial reports. In Q3 2025, Disney's theme parks, cruise lines, and resorts saw a 13% increase in operating income and an 8% rise in revenue, driven by strong domestic results and a new cruise ship launch.
Disney's linear TV business, including ESPN, saw a 15% revenue decrease and a 28% drop in operating income, indicating a continued trend of cord-cutting. Despite the linear TV challenges, Disney's streaming business continues to grow, with a 6% increase in direct-to-consumer revenue and a shift to profitability.
ESPN is making major moves, including a strategic partnership with the NFL and a new direct-to-consumer streaming service launch. Disney is acquiring the NFL Network and other NFL media assets in exchange for a 10% stake in ESPN. ESPN will become the exclusive US streaming home for WWE Premium Live Events, including WrestleMania and SummerSlam, starting in 2026.