The Walt Disney Company (NYSE: DIS) is set to release its fourth-quarter fiscal 2025 results on Thursday before the market opens, with Wall Street anticipating a mixed report.
Investors will focus on key performance areas, including theme parks, streaming growth, and the company’s efforts to stabilize its traditional TV and sports broadcasting businesses.
The results are expected to provide a clearer picture of how the entertainment giant is adapting to the ongoing transformation in the global media landscape.
Analysts expect slower growth and margin pressure
Analysts project Disney to report adjusted earnings of $1.02 per share on revenue of $22.78 billion for the quarter, compared to $1.14 per share on $22.57 billion in the same period last year.
Analysts expect fourth-quarter EPS to decline by around 9% year-over-year, following the strong Q3 performance.
The consensus points to a modest rise in revenue but a decline in profitability, highlighting ongoing margin pressures.
In the previous quarter, Disney posted adjusted earnings of $1.61 per share, up 16% year-over-year, and revenues of $23.7 billion, a 2% increase.
Net income attributable to shareholders nearly doubled to $5.2 billion from $2.6 billion in the prior-year quarter, demonstrating operational resilience in a challenging environment.
For fiscal 2025, Disney forecasts adjusted earnings of $5.85 per share, representing an 18% increase from fiscal 2024.
Streaming, theme parks, and content strategy under the microscope
Disney’s streaming business and theme park performance are expected to remain central to investor focus.
Analysts believe the company’s streaming recovery, bolstered by upcoming content such as a behind-the-scenes Taylor Swift’s Eras Tour series debuting on Disney+ in December, could support long-term growth.
TMF’s chief investment officer Andy Cross noted that “keeping the biggest star on the planet on Disney+ is key,” emphasizing Disney’s need to expand beyond Marvel and traditional franchises to remain competitive in the streaming space.
Meanwhile, Disney’s theme parks and experiences division continues to be a bright spot, supported by post-pandemic travel demand and expanded cruise capacity.
The company’s cost-reduction initiatives are also expected to improve profitability as it streamlines operations and focuses on higher-margin business segments.
Despite its diversification efforts, Disney continues to face structural challenges in its linear TV and sports broadcasting units, which remain under pressure from cord-cutting trends and shifting advertising dynamics.
These segments could weigh on overall revenue growth in the near term.
Analyst outlook: long-term growth potential
On Wall Street, sentiment toward Disney remains optimistic.
Morgan Stanley analyst Benjamin Swinburne reaffirmed a Buy rating on the stock with a $140 price target, citing confidence in the company’s growth prospects.
Swinburne expects significant double-digit earnings growth in FY26, driven largely by Disney’s experiences and streaming segments, which could contribute as much as 70% of total earnings.
He highlighted Disney’s strong ability to monetize its iconic brands and franchises, along with strategic investments in parks, cruise lines, and integrated streaming platforms.
These factors, combined with a focus on innovation and operational efficiency, are seen as positioning Disney well for sustained growth in the evolving entertainment landscape.
With Q4 results around the corner, the market will be watching closely to see whether Disney can maintain its recovery momentum — and deliver on expectations in an increasingly competitive and rapidly changing media environment.
Disney stock has remained almost unchanged, trading down by 0.07% in 2025 so far.
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