Disney (DIS) reported strong fiscal Q1 2025 results, exceeding analyst projections for both profit and revenue, despite a slight decline in Disney+ subscribers. The entertainment giant posted a net income of $2.55 billion, translating to $1.40 per share, on revenue of $24.69 billion. This surpassed consensus estimates of $2.38 billion in net income, or $1.31 per share, on revenue of $24.63 billion, according to Visible Alpha.
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A key area of focus was Disney+, the company’s flagship streaming service. Subscriber numbers dipped slightly to 124.6 million in the quarter, down from 125.3 million in the previous quarter. Disney acknowledged this decline and anticipates a further “modest decline” in Disney+ subscribers during the second quarter.
Looking ahead, CEO Bob Iger and CFO Hugh Johnston reaffirmed plans to launch a standalone streaming version of ESPN, encompassing the sports network’s full programming lineup, this fall. Early integration efforts, incorporating Hulu and ESPN+ content tiles within the Disney+ platform, have yielded promising results, with increased engagement from standalone subscribers accessing the bundled content. This strategy suggests a potential pathway to offset subscriber churn and enhance the overall value proposition of the Disney+ ecosystem.
Despite the slight subscriber dip, the positive financial performance and strategic outlook indicate continued strength for the company. The market reacted favorably to the earnings announcement, with Disney shares experiencing minimal fluctuation shortly after the opening bell. Leading up to the earnings release, Disney stock had already demonstrated robust performance, gaining approximately 17% over the past year. This suggests that investor confidence remains strong, underpinned by Disney’s diversified portfolio of entertainment assets and its ongoing adaptation to the evolving media landscape.
