DIS Earnings 2025: Disney Stock Defies Gravity as Parks & Streaming Rescue Sinking TV Division

Mouse House proves it's still the king of the content jungle—even as linear TV bleeds out.

Parks print money, streaming fights back

While legacy cable networks crumble like a stale churro, Disney's theme parks and DTC arm are pulling their weight. Bob Iger's 'old media' empire now runs on rollercoasters and algorithmically-generated Star Wars spinoffs.

Wall Street shrugs

Analysts expected another 'transitional quarter'—Wall Street code for 'still figuring out how to monetize Gen Z's 8-second attention span.' Yet the stock held firm, because nothing matters except the next Marvel trailer drop.

The bottom line

Disney's doing the corporate tango: one step forward with direct-to-consumer, two steps back with cord-cutting. But hey, at least they're not Netflix—still pretending password sharing was the problem, not mediocre content.

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Revenue came in at $22.46 billion. Segment operating income fell 5% to $3.48 billion, largely due to ongoing declines at linear TV and a softer film slate. The stock remains stuck in a broad range between $80 and $125, a level it has struggled to break out of for more than three years. Disney is trying to change that narrative with a bigger capital return plan and tighter cost discipline.

Disney Boosts Investor Returns

Disney said it will return more cash to shareholders in the new Fiscal year. The company plans to double buybacks to $7 billion and lift its dividend by 50% to $1.50 a share. Management is betting that steady progress in streaming profitability and a long runway in its parks business can restore confidence in the stock.

Disney also reiterated its outlook for double-digit adjusted earnings-per-share growth in fiscal 2026 and 2027. The company expects streaming margins to keep improving, with profitability rising to 10% this year from about 5% in 2025. CEO Bob Iger said the focus remains on rebuilding earnings power after several years of heavy investment and volatile results.

Disney Faces Network Disruptions

The weakness in TV networks remained a drag. Disney is still without ESPN and other channels on YouTube TV after a contract dispute that has stretched nearly two weeks. The fight has added fresh pressure at a time when the linear business continues to shrink at a double-digit rate.

The company also faced fallout from the brief suspension of Jimmy Kimmel, which analytics firm Antenna said caused a spike in cancellations for Disney+ and Hulu. Disney didn’t disclose churn figures, but it did add 12.4 million new subscriptions last quarter, bringing the combined total to 195.7 million. Direct-to-consumer operating income ROSE 39% to $352 million, nearly matching linear network profits.

Parks and Experiences Drive Profit Growth

Disney’s parks and experiences division remains the company’s most reliable engine. Operating income rose 13% to $1.88 billion, accounting for more than half of total company profit. Growth was strongest overseas, including Disneyland Paris, which is in the middle of a major expansion. The cruise business also posted gains.

Disney is investing $60 billion over 10 years in new attractions, lands, and a cruise fleet that will expand to 13 ships. Management expects this business to provide stable earnings even as content and advertising markets remain choppy.

Disney’s Film Slate Faces Hits and Misses

The movie division had a weaker quarter. “The Fantastic Four: First Steps” delivered a softer box office than expected, a notable step down from last year’s “Deadpool & Wolverine.” The new quarter started with a stumble from “Tron: Ares,” though “Predator: Badlands” opened solidly, and Disney is banking on “Zootopia 2” and “Avatar: Fire and Ash” for a stronger holiday stretch.

The company still plans to name a successor to CEO Bob Iger in early 2026, a decision that could shape the next phase of the turnaround.

Is Disney Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 14 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 13.6% rally in its share price over the past year, the average DIS price target of $141.38 per share implies 21.2% upside potential.