Disney's Reinvigorated Magic: A Fiscal Year Flutter of Achievements
Highlights
- Adjusted EPS: Up 19% YoY
- Share repurchases: $7 billion anticipated, doubling from 2025
- Cash dividend: $1.5 per share, a 50% increase
- Film studios box office: $4 billion for the fourth consecutive year
- Streaming operating income: Up 39% in Q4
- DTC operating income: $1.3 billion, up $1.2 billion from last year
- ESPN viewership: Ratings up 25% YoY
- Experiences segment operating income: Up 13% for Q4
In its latest earnings release, The Walt Disney Company showcases another magical year underscored by substantial financial strides and promising growth in its various segments.
Robust Fiscal Performance
Disney reported a remarkable 19% increase in adjusted earnings per share (EPS) for fiscal 2025, continuing its trajectory of a 19% compound annual growth rate in adjusted EPS over the last three years. In a significant move to enhance shareholder value, Disney is targeting $7 billion in share repurchases for the upcoming year, a figure that doubles from the previous fiscal year. Additionally, the company announced a hefty dividend increase of 50%, now at $1.5 per share.
Cinematic and Streaming Success
The film segment continues to be a cornerstone of Disney's success, with the studios crossing the $4 billion mark at the global box office for the fourth year in succession. Disney's live-action "Lilo and Stitch" led the box office as the highest-grossing Hollywood film and became a major contributor to increased merchandise sales, which eclipsed $4 billion for the fiscal year.
On the streaming front, Disney's direct-to-consumer (DTC) business has surged forward, with Q4 operating income climbing 39%. Over the past year, the DTC segment has seen its operating income leap to $1.3 billion, a $1.2 billion increase, far surpassing initial guidance.
Sporting and Experience Endeavors
As ESPN embarks on its new direct-to-consumer journey, the network has seen viewership ratings soar by 25% year-over-year. The response to ESPN's upgraded services, including a revamped app, has been overwhelmingly positive, attracting new subscribers and enhancing advertising opportunities.
Disney’s experiential ventures have not lagged, delivering record highs this quarter. The Experiences segment chalked up a 13% year-over-year bump in operating income for Q4. As the company readies new cruise ships and expansions across its theme parks, demand and bookings provide a promising outlook for the new fiscal year.
Disney continues to deepen its hold on the entertainment industry through a blend of storytelling, compelling content, and strategic financial maneuvers, paving a promising path for the years ahead.