The Walt Disney Company reported its fiscal full year and fourth quarter results on Thursday with CEO Bob Iger and CFO Hugh Johnston highlighting the company’s successes in the quarter and the fiscal year.
“This was another year of great progress as we strengthened the company by leveraging the value of our creative and brand assets and continued to make meaningful progress in our direct-to-consumer businesses,” Iger and Johnston said in an executive commentary on Thursday.
Iger and Johnston added that Disney’s efforts in Fiscal 2025 “resulted in strong earnings growth for the company.”
Film & TV
“This summer’s box office once again demonstrated the global and cross-generational appeal of our storytelling and IP,” Iger and Johnston said, noting that Disney’s live-action Lilo & Stitch remains the highest grossing Hollywood film at the global box office this calendar year.
The success of Lilo & Stitch “has extended across our interconnected businesses and consumer touchpoints,” Iger and Johnston said.
“The film earned 14.3 million views during its first five days on Disney+, becoming the second-biggest Disney live-action premiere on the platform ever,” the two added. “Retail sales of consumer products merchandise for Stitch, including sales by our licensees, also continue to grow, eclipsing $4 billion in fiscal 2025. The popularity of this global phenomenon underscores the franchise’s enduring strength and the effectiveness of our strategy to invest in popular stories and characters.”
However, Disney’s success was not just on the big screen.
“We saw strong viewership of our content in Q4, fueled by television series such as Alien: Earth — FX’s biggest premiere ever on Disney+ and Hulu; Season two of High Potential, the No. 1 original broadcast series across all platforms for the second season in a row among Adults 18-49; the Korean global hit Tempest; and Season 34 of ABC’s Dancing with the Stars, which made history as the only fall show to increase its overall audience for six straight weeks following a season premiere — something that has never been achieved by any show since Nielsen began electronic measurement in 1991.”
Streaming
As for Disney’s Entertainment streaming business, it “had another quarter of profit growth,” Iger and Johnston said.
The two added that the success of Disney’s streaming business is “especially notable given that only three years ago our direct-to-consumer businesses had an operating loss of $4 billion [1], reflecting the remarkable progress we’ve made and the effective execution of our strategy.”
Iger and Johnston went on to say that as Disney continues to establish Direct-to-Consumer as “a core driver of growth,” the company is advancing important initiatives to create a unified app experience to better serve our users and “provide opportunities to unlock new value for the company.”
“In October, Hulu became our global general entertainment brand within Disney+ in international markets. And we continue work to consolidate all of our Entertainment content domestically within a single app, which will simplify the user experience, highlight the full value of our bundles, and unlock further marketing efforts,” the two said.
Finally, the two added that there are further updates coming soon to Disney+, such as an even more visually engaging homepage, greater personalization from improved recommendation algorithms, and more.
“Looking ahead, we are positioned to continue to grow our streaming business in fiscal 2026,” Iger and Johnston noted.
Sports
In Q4, ESPN ushered in a new era for sports fans with the launch of its direct-to-consumer service and enhanced ESPN App. This made ESPN’s full suite of networks and services directly available to fans for the first time. It also continued ESPN’s evolution as the preeminent digital sports platform.
“We’re thrilled by the response from fans so far, especially to the upgraded ESPN App,” Iger and Johnston said. “With the addition of ESPN DTC, we are excited for the options we are able to offer sports fans, and we believe ESPN’s success will be reflected in our financial results over time.”
The two added, “Viewership of our industry-leading portfolio of live sports remains robust, with Q4 ratings across ESPN networks, including ESPN on ABC, up 25% over the prior year quarter.” [2]
Experiences
Disney’s Experiences segment delivered record operating income for both Q4 and the full year, Iger and Johnston noted.
“In addition, we continue to add value for our guests, resulting in strong customer satisfaction,” they said. “Despite increased competition in the marketplace, Walt Disney World and Disneyland remain the two most visited theme parks in the world, offering an unparalleled guest experience.” [3]
Iger and Johnston noted that the company is looking forward to the launch of two new cruise ships in the coming months: The Disney Destiny, which has its maiden voyage on November 20, and the Disney Adventure, which will launch in March, marking the first time the company has a ship homeported in Asia.
“With expansion projects underway at every one of our theme parks, five additional cruise ships scheduled for launch beyond fiscal 2026, and a new theme park planned for Abu Dhabi, the strategic investments we are making now will help ensure our offerings remain best-in-class and appeal to audiences worldwide well into the future,” the two said.
Final Thoughts
Iger and Johnston concluded their executive commentary by saying, “overall, this quarter caps another strong fiscal year for the Company.”
“We continue to execute across our strategic priorities as we build for the future, deliver the very best in entertainment to consumers, and create value for shareholders,” the two concluded.
- [1]: Operating loss of $4 billion reported for the fiscal year ended October 1, 2022 for Disney Media and Entertainment Distribution Direct-to-Consumer, which included Disney+, Hulu and ESPN+.
- [2]: Source: Nielsen, P2+, Live+SD audience.
- [3]: According to the TEA Global Experience Index’s Global Attractions Attendance Report.
The information above should be read together with Disney’s Q4 and FY 25 Earnings Report, Form 10-K, prepared earnings remarks (executive commentary), and earnings call (all available here), which discuss additional information, including additional challenges and risks the company’s businesses face and additional information about Q4 and FY25 performance.
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