The Walt Disney Company Reports $23.7 Billion Revenue and $5.3 Billion Net Income for Quarter Ended June 28, 2025

The Walt Disney Company reported a total revenue of $23.7 billion for the quarter ended June 28, 2025, reflecting a 2% increase from $23.2 billion in the same quarter of the previous year. For the nine months ending June 28, 2025, revenues rose to $72.0 billion, up 5% from $68.8 billion year-over-year. The company’s net income for the quarter surged to $5.3 billion, more than doubling from $2.6 billion in the prior year, while net income for the nine-month period reached $11.1 billion, compared to $4.5 billion in the same period last year. This significant increase in profitability was attributed to a lower effective tax rate and improved operating income across various segments, particularly in Experiences and Sports.

In terms of operational performance, Disney's Experiences segment saw an 8% revenue increase to $9.1 billion, driven by higher theme park admissions and resort revenues. The Sports segment, however, experienced a 5% decline in revenue to $4.3 billion, primarily due to decreased advertising and affiliate fees, which were impacted by the Star India transaction. The Entertainment segment's revenue increased slightly by 1% to $10.7 billion, with growth in direct-to-consumer subscription fees offsetting declines in advertising revenue.

Strategically, Disney completed the acquisition of NBC Universal's interest in Hulu, gaining full ownership of the streaming service. This acquisition resulted in a non-cash tax benefit of approximately $3.3 billion, which significantly influenced the company's financial results. Additionally, Disney announced a planned merger with fuboTV, which is expected to close in the first half of fiscal 2026, further expanding its direct-to-consumer offerings.

Disney's total employee headcount as of June 28, 2025, was approximately 223,000, a slight decrease from the previous year. The company reported a total of 127.8 million paid subscribers across its streaming services, including Disney+ and Hulu, with Disney+ alone accounting for 57.8 million subscribers in the U.S. and Canada. The average monthly revenue per paid subscriber for Disney+ increased to $7.86, reflecting a 1% rise from the previous quarter.

Looking ahead, Disney anticipates continued growth in its direct-to-consumer segment, driven by strategic investments in content and technology. The company expects its fiscal 2025 capital expenditures to reach approximately $8 billion, up from $5 billion in fiscal 2024, as it focuses on expanding its parks and experiences, as well as enhancing its streaming services. However, the company remains cautious about potential macroeconomic challenges that could impact consumer demand and operational costs.