DETAIL

Walt Disney Co to Release Q3 Earning Reports

Walt Disney Co. is set to release its Q3 2025 earnings before the market opens, with investors primarily focused on the performance of its streaming, TV, film, and theme park segments.

Wall Street Expectations (according to LSEG):

Earnings Per Share (EPS): $1.47
Revenue: $23.73 billion

Key Highlight: Streaming

Significant attention will be on updates regarding the upcoming launch of ESPN’s standalone streaming service, scheduled for this fall—though an exact date has yet to be announced.

The new service, called ESPN, will feature all content from the traditional ESPN TV channel, plus exclusive additional content.
The subscription price is set at $29.99 per month, in response to the ongoing shift of consumers from cable TV to streaming.
This move will directly compete with Fox Corp, which plans to launch Fox One on August 21 at a monthly price of $19.99.

Disney+ Performance and Profitability

In its last earnings report in May, Disney reported 126 million global Disney+ subscribers, exceeding analyst expectations. More importantly, Disney revealed that its streaming division has reached profitability — now a more critical metric than subscriber growth.

International Expansion & Experiences Segment
Disney announced a new partnership to develop a theme park and resort in Abu Dhabi, which will become the company’s 7th global resort.

The Experiences segment (including theme parks, cruises, resorts, and consumer products) reported:

6% year-over-year revenue growth overall
9% revenue growth in domestic theme parks
5% revenue decline in international parks

EARNINGS PROJECTION: Q3 2025 — WALT DISNEY CO. (DIS)

Walt Disney Co. (DIS) is set to release its Q3 2025 earnings on the morning of August 7, with investors having high expectations across three key pillars: Parks & Experiences, Streaming, and Sports (ESPN).

Market Expectations

Revenue: Projected at $23.75 billion (up year-over-year)
Earnings Per Share (EPS): Expected in the range of $1.45–$1.48, with UBS offering a more bullish estimate of $1.59
Disney+ Subscribers: Forecasted to reach 127.4 million, up from 126 million in Q2

Business Segment Performance

Experiences (Theme Parks & Cruise Line)

Expected revenue: $8.89 billion
Expected operating income: $2.46 billion
Walt Disney World and Disneyland remain strong, supported by new attractions and a 4% increase in guest spending (Q2).
The cruise line business is positioned to become a major contributor, with new ships expected to add over $1 billion to FY26 revenue.
International markets like Hong Kong and Shanghai are still in recovery mode post-COVID.

Streaming & Entertainment

Disney+ ARPU (average revenue per user) rose 3% in Q2, pushing entertainment segment operating income to $336 million, up from just $47 million a year ago.
Q3 is expected to add 1–2 million new Disney+ subscribers, with a focus on margin expansion through price hikes and cost efficiency.
Investors are watching Disney’s bundling strategy (Disney+, Hulu, ESPN), and the upcoming standalone ESPN streaming launch in Q4.

Sports (ESPN)

ESPN is in the spotlight with plans to launch its own streaming platform.
A strategic partnership with the NFL, including media asset transfers for equity, strengthens ESPN’s position as linear TV declines.
Management remains committed to sports segment earnings growth in FY25.

Benchmark: Q2 2025 Performance

Revenue: $23.5 billion
Entertainment revenue: $10.17 billion (+9% YoY)
Entertainment operating income: $1.3 billion (+61% YoY)
Box office hits like Inside Out 2 and Deadpool & Wolverine boosted revenue, while upcoming releases (Tron: Ares, Zootopia 2) strengthen the content pipeline.

Strategic Initiatives

Major project Disneyland Abu Dhabi announced, targeting Middle East, Africa, and Asia markets.
Ongoing $30 billion investment in U.S. domestic parks (Florida & California).
FY25 EPS guidance raised to $5.75, with double-digit growth targeted through FY27.

Risks & Challenges

Global tariffs and macroeconomic uncertainty may limit discretionary spending at theme parks.
The streaming industry remains fiercely competitive, with churn risk still present.
With the stock up 30% YTD, high expectations leave little room for error if Q3 results fall short.

Conclusion

Disney heads into Q3 with strong momentum from its theme parks, growing streaming subscriber base, and transformational ESPN strategy. If it can meet or exceed expectations in these three areas, DIS shares may continue their rally through year-end. However, execution and risk management will be critical moving forward.