The Walt Disney Company closed fiscal year 2025 with strong momentum in its streaming business and shareholder initiatives, despite flat overall revenue growth and ongoing challenges in its traditional media segment. According to the company’s Q4 and full-year earnings report, Disney added 12.5 million subscribers across Disney+ and Hulu in the fourth quarter alone, bringing their combined total to approximately 196 million globally. This includes 112.6 million subscribers for Disney+ and 83.7 million for Hulu, marking one of the strongest quarters for subscriber growth in recent years.
The Direct-to-Consumer (DTC) segment showed a notable turnaround, posting an operating income of $352 million in the fourth quarter, up from a $387 million loss in the same quarter last year. This performance was driven by higher average revenue per user (ARPU), disciplined content spending, and increased advertising revenue, particularly from Hulu’s ad-supported tier. Disney’s international markets, including the launch of Disney+ in new territories, also contributed to this growth.
CEO Bob Iger underscored the importance of streaming in the company’s broader transformation strategy: “We continue to make important strides to position our business to succeed in today’s evolving media landscape.” Iger highlighted that the rebound in profitability within the DTC business, coupled with solid performance from the Parks and Experiences division, puts the company on a stable path heading into fiscal 2026.
Theme parks and experiences remained a bright spot, with domestic parks revenue increasing by 8% year-over-year, and operating income for the Parks segment growing by 13% in the quarter. Meanwhile, Disney’s traditional media networks faced further declines. Linear networks posted a 9% drop in operating income due to continued cord-cutting and softness in the advertising market, particularly in entertainment-focused channels.
To bolster investor confidence, Disney announced a 50% increase in its semi-annual dividend and revealed a plan to repurchase $7 billion in shares in fiscal 2026—doubling its previous buyback target. These shareholder-focused moves are part of a broader effort to unlock value while maintaining investment in strategic growth areas.
The company reaffirmed its guidance for double-digit earnings per share growth in both fiscal 2026 and 2027. While Disney continues to navigate a complex media environment, its rapid growth in streaming, renewed focus on profitability, and aggressive capital return program signal a clear shift in its long-term strategic priorities.
Related News
