Disney Posts Strong Earnings, Stock Rises Despite Disney+ Subscriber Dip

The Walt Disney Company (NYSE: DIS) reported a 5% revenue increase to $24.7 billion for the quarter ended December 28, 2024, driven by gains in entertainment and theme parks. Net income surged to $2.6 billion, up from $1.9 billion a year ago, with earnings per share (EPS) of $1.76, beating analyst expectations of $1.45.

Disney's entertainment division saw a 9% revenue boost to $10.9 billion, fueled by theatrical success and streaming growth. The sports segment returned to profitability, while parks and experiences revenue rose 3% to $9.4 billion, though domestic park performance softened.

Despite strong financials, Disney+ lost 700,000 subscribers, bringing its total to 125 million, though overall streaming subscriptions (Disney+ and Hulu) increased to 178 million.

The company reaffirmed its full-year outlook, expecting high-single-digit EPS growth, aligning with FactSet's projected 8.9% rise. Disney shares climbed 2.6% in premarket trading following the report.