Disney Earnings Top Wall Street Expectations But Disney+ Subscriptions Fall

The Walt Disney Company reported strong first-quarter earnings for fiscal 2025 on Wednesday, exceeding Wall Street's expectations.

The House of Mouse released its executive summary that showed revenues increased by 5% to $24.7 billion, while income before taxes rose by 27% to $3.7 billion.

Disney's entertainment division saw a 95% increase in operating income to $1.7 billion, driven by the success of the animated film, Moana 2.

CEO Bob Iger attributed Disney's earnings results to strategic initiatives and strong box office performance.

"In fiscal Q1 we saw outstanding box office performance from our studios, which had the top three movies of 2024; we further improved the profitability of our Entertainment DTC streaming businesses; we took an important step to advance ESPN's digital strategy by adding an ESPN tile on Disney+; and our Experiences segment demonstrated its enduring appeal as we continue investing strategically across the globe," Iger said.

Diluted earnings per share (EPS) jumped 35% to $1.40, showing a 44% growth in diluted EPS excluding certain items.

Total segment operating income grew 31% to $5.1 billion.

The company reported $3.660 million in pre-tax income, up from $2.871 million the previous year.

At the end of Q1, the Walt Disney Company had 178 million Disney+ and Hulu subscriptions.

The company reported that Disney+ subscriptions fell by 0.7 million from the previous quarter.

The earnings report attributed the decline in Disney+ subscriptions to the "deconsolidation" of Star India and the absence of significant cricket events, which typically perform well with an Asian audience.

The company also alluded to recent price increases and the expiration of a wholesale deal in Europe as the causes behind the loss.

While Disney+ subscriptions fell, Hulu subscriptions rose by 1.6 million to 53.6 million.

The Walt Disney Company attributed its success to strategic investments in its Experiences segment.

The company says it will continue to focus on enhancing platform engagement and expanding its subscriber base globally.

Iger said Disney is confident in its strategy and expects continued growth.

"Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth," he said.