Walt Disney's financial results set the tone for an upbeat stock forecast in 2025

Walt Disney’s Q2 2025 financial results exceeded market expectations, triggering a rise in DIS shares. A breakout above the 121 USD resistance level may pave the way towards 150 USD.

The Walt Disney Company (NYSE: DIS) published its Q2 2025 report, highlighting its resilience in a challenging economic environment. Earnings per share rose by 20% year-on-year to 1.45 USD, surpassing market forecasts. Revenue increased by 7%, reaching 23.62 billion USD, with the Entertainment and Experiences segments making the most substantial contribution through solid growth. Sentiment was further boosted by the announcement of a new theme park to be constructed in Abu Dhabi – Disney’s first project in the Middle East, developed in partnership with Miral.

Following the report, Disney shares rose by 11%, reflecting investor confidence in the company’s strategy and outlook.

This article explores The Walt Disney Company and its business model, offering a fundamental analysis of Disney’s financial report. It also includes a technical analysis of Walt Disney’s stock, evaluating its current performance as the basis for a DIS stock forecast for 2025.

About The Walt Disney Company

The Walt Disney Company is one of the world’s largest media and entertainment corporations, founded on 16 October 1923 by brothers Walter and Roy Disney. The company is renowned for its live-action films and animated cartoons, including iconic creations such as ‘Snow White and the Seven Dwarfs’. Its portfolio includes Lucasfilm, Marvel Studios, Pixar, and 20th Century Studios. In addition to film production, Disney operates theme parks and resorts worldwide – Disney World and Disneyland – and broadcasts television through ABC, ESPN, and National Geographic. In 2019, the company launched the Disney+ streaming service. Another key business area is producing and licensing merchandise related to its popular franchises. Disney went public on the New York Stock Exchange on 12 November 1957, trading under the DIS ticker.

The Walt Disney Company’s main financial flows

Walt Disney’s revenue is derived from several key sources, spanning a wide range of entertainment and media operations. Disney’s key revenue-generating segments are outlined below:

• Media Networks: television channels and cable networks (ABC, Disney Channel, ESPN, FX, National Geographic, and others). Revenue streams include advertising, licence fees, paid subscriptions, and the sale of broadcasting rights
• Subscriptions and International Operations: streaming services (Disney+, ESPN+, and Hulu) and international trade. The main sources of income are subscriptions to streaming platforms and the sale of content and licences in foreign markets
• Parks, Experiences, and Consumer Products: theme parks, resorts, cruises, and hotels. Revenue is generated through ticket sales, holiday packages, souvenirs, licensed toys, and other goods and services
• Studio Entertainment: film production and distribution, home video sales, and music publishing. Revenue comes from cinema distribution, the sale of digital and physical content, and proceeds from music soundtrack and licensing

In its financial reports, Disney categorises all revenue into three key segments:

1. Entertainment: film production, TV programming, cinema distribution, content sales and licensing, soundtrack releases, and Broadway productions.
2. Sports: operations related to the ESPN brand, including cable and digital sports broadcasts, broadcasting rights for sports events, the ESPN+ streaming platform, advertising, content licensing, and sports analytical programs and events.
3. Experiences: theme parks (Disneyland, Disney World, and international parks), cruises (Disney Cruise Line), resorts and hotels, attractions, as well as events and client engagement activities related to the Disney brand (interactive shows and VIP tours).
4. Eliminations: reflects fees paid by Hulu to ESPN and the Entertainment segment’s linear television business for the rights to broadcast their channels on the Hulu Live platform, as well as fees paid by ABC and Disney+ to ESPN for carrying certain sports content on the ABC channel and Disney+.

The Walt Disney Company’s strengths and weaknesses

Walt Disney’s strengths:

• Popular brand and recognition: Disney is one of the most well-known companies in the world
• Unique intellectual property: the Marvel, Pixar, and Star Wars franchises, classic animated characters, and original content
• Diversified business: Disney generates revenue across multiple segments, including media, streaming, merchandise, and films
• Global presence: theme parks, films, and media cater not only to the US but also to international markets
• Business integration: comprehensive integration across its businesses enables the company to leverage its assets as effectively as possible, with films and shows serving as the basis for themed attractions, merchandise, and licensing

Weaknesses of Walt Disney’s business:

• Reliance on flagship Marvel and Star Wars franchises: failures to release content could negatively impact Disney’s revenue
• Dependence on economic conditions: theme parks and resorts, which are significant revenue streams, are highly sensitive to economic conditions, tourism trends, and global events (for example, the COVID-19 pandemic)
• High streaming costs: Disney+ incurs substantial content costs and faces intense competition, which increases the financial burden on the company’s expenditure budget
• Slow adaptation to audience preferences: Disney faces challenges in promptly responding to changing preferences. Its large-scale structure delays decision-making, and frequent criticism of the company’s cultural and social policies poses serious reputational risks

Disney’s key competitors are Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Comcast Corporation (NASDAQ: CMCSA), NBCUniversal, Netflix, Inc. (NASDAQ: NFLX), Paramount Global (NASDAQ: PARA), Sony Pictures, and Warner Bros. Discovery, Inc. (NYSE: WBD). Each company holds a leadership position in specific business areas (for example, Netflix in streaming, Universal Studios in theme parks, and Warner Bros. Discovery in film and television content production). However, the combined strengths of Disney’s diverse business segments, scale, and powerful brand give it significant advantages over its competitors.

The Walt Disney Company Q4 2024 financial report

On 14 November, The Walt Disney Company released its report for Q4 fiscal 2024, which ended on 28 September. Key report data is outlined below:

• Revenue: 22.57 billion USD (+6%)
• Net income: 0.95 billion USD (-6%)
• Earnings per Share: 1.14 USD (+39%)
• Operating profit: 3.65 billion USD (+23%)

Revenue by segment:

• Entertainment: 10.83 billion USD (+14%)
• Sports: 3.91 billion USD (unchanged)
• Experiences: 8.24 billion USD (+1%)

Segment operating income:

• Entertainment: 1.07 billion USD (+353%)
• Sports: 0.92 billion USD (-5%)
• Experiences: 1.66 billion USD (+6%)

All indicators (except net income) showed growth. The company’s management attributed the decline in net income to increased spending on content production and marketing, as well as higher costs for developing streaming services (Disney+, Hulu).

The company projected continued growth in its key financial indicators in 2025 but predicted a potential decline in the number of new Disney+ subscribers in Q1 2025 compared to Q4 2024.

Disney plans a share buyback program worth 3.00 billion USD and dividend distribution this year. Dividends will increase by 33%, rising to 0.50 USD per share, and will be paid in two instalments in January and July 2025.

In 2026, Walt Disney predicted a slower percentage growth rate in the Sports segment, with significant single-digit growth in the Experiences segment and double-digit growth in the Entertainment sector.

Based on the company’s 2025-2026 forecasts, key financial indicators were expected to rise further, which should positively impact dividend payouts and the share buyback program, ultimately leading to an increase in the stock price.

The Walt Disney Company Q1 2025 financial report

On 5 February, The Walt Disney Company released its report for Q1 fiscal 2025, which ended on 28 December 2024. Below are its key highlights:

• Revenue: 24.69 billion USD (+6%)
• Net income: 3.66 billion USD (+27%)
• Earnings per Share: 1.76 USD (+44%)
• Operating profit: 5.06 billion USD (+31%)

Revenue by segment:

• Entertainment: 10.87 billion USD (+9%)
• Sports: 4.85 billion USD (unchanged)
• Experiences: 9.41 billion USD (+3%)

Segment operating income:

• Entertainment: 1.70 billion USD (+95%)
• Sports: 247 million USD (vs a loss of 103 million USD)
• Experiences: 3.11 billion USD (+31%)

CEO Robert Alan Iger emphasised the company’s strong start to the new financial year and expressed confidence in its growth strategy. He highlighted significant successes in streaming services, including the integration of ESPN into Disney+, as well as consistently strong performance in the theme park and resort segment.

Looking ahead, Disney forecast high single-digit growth in adjusted EPS compared to 2024. The company also expected operating income in the streaming segment (Disney+, Hulu, ESPN+) to increase by approximately 875 million USD. As previously projected, Disney planned to allocate 3.00 billion USD to share buybacks in 2025.

Although The Walt Disney Company exceeded revenue and income forecasts in Q1 2025, its stock edged down by the end of the trading session on the day of the report release. This was primarily driven by a decrease of 700 thousand in Disney+ subscribers, raising concerns among investors about further growth in the streaming sector. Additionally, the company warned that subscriptions could decline further in Q2 due to the recent price increase, reinforcing the negative sentiment in the market.

The Walt Disney Company Q2 2025 financial report

• Revenue: 23.62 billion USD (+7%)
• Net income: 3.09 billion USD (+369%)
• Earnings per share: 1.45 USD (+20%)
• Operating profit: 4.43 billion USD (+15%)

Revenue by segment:

• Entertainment: 10.68 billion USD (+9%)
• Sports: 4.53 billion USD (+5%)
• Experiences: 8.89 billion USD (+6%)
• Eliminations: (484) million USD (compared to a loss of 418 million USD)

Segment operating income:

• Entertainment: 1.26 billion USD (+61%)
• Sports: 0.69 billion USD (-12%)
• Experiences: 2.49 billion USD (+9%)

Disney’s Q2 2025 financial report clearly demonstrates the company is successfully regaining momentum. Earnings per share rose by 20% year-on-year, beating analyst expectations, while revenue increased by 7%. Following the report’s release, Disney shares jumped by 11%. However, the highlight was not only improved financials but also a clear indication that the company’s turnaround strategy is starting to deliver results.

One of the most notable announcements was the planned construction of a new theme park in Abu Dhabi. The park will be located on Yas Island in partnership with Emirati company Miral. Notably, Disney will not invest in the construction – Miral will cover all costs, while Disney will provide creative input and receive royalties. This capital-light strategy enables Disney to expand its international footprint without incurring additional debt.

Despite the negative outlook expressed in the Q1 2025 report, Disney’s streaming platforms – particularly Disney+ and Hulu – added 2.5 million subscribers, bringing the total to 180.7 million. This growth contributed significantly to an increase in operating income. The success of theatrical releases such as Moana 2 and Marvel’s Thunderbolts not only boosted box office revenues but also increased streaming engagement and theme park attendance.

As of 29 March 2025, Disney held 5.85 billion USD in cash and equivalents, up from 5.48 billion USD on 28 December 2024. The increase in liquid assets reflects steady positive cash flow and efficient working capital management.

Total borrowings, including short-term obligations, declined to 42.9 billion USD at the end of Q2, down from 45.3 billion USD three months earlier.

Free cash flow for the quarter came in at 4.89 billion USD, underscoring the company’s strong operating efficiency and ability to generate significant cash – sufficient to fund investment, service debt, and pay dividends.

In its outlook for Q3 2025, management expects continued subscriber growth and robust performance across all key business areas. The company raised its full-year 2025 EPS forecast to 5.75 USD, 16% above the 2024 result. Operating income is expected to grow at a double-digit pace in the Entertainment segment, by 18% in Sports and 6–8% in Experiences.

Despite ongoing macroeconomic risks, including potential trade tariffs, Disney’s diversified portfolio and strategic initiatives provide a strong foundation for long-term growth. For investors, these results and forward guidance signal the resilience of the Walt Disney business.

Expert forecasts for The Walt Disney Company stock for 2025

• Barchart: 21 out of 29 analysts rated Walt Disney stock as a Strong Buy, two as Moderate Buy, and six as a Hold, with a high price target of 148 USD
• MarketBeat: 19 out of 25 specialists gave the shares a Buy rating, while six recommended Hold, with a high price target of 147 USD
• TipRanks: 13 out of 17 professionals recommended the stock as a Buy, while four rated it as Hold, with a high price target of 147 USD
• Stock Analysis: 12 out of 24 experts rated the stock as a Strong Buy, seven as a Buy, and five as a Hold, with a high price target of 147 USD

None of the analysts recommend selling Walt Disney shares.

The Walt Disney Company stock price forecast for 2025

Disney stock halted its decline – which began in March 2021 from the 200 USD level – only in October 2023, when it reached 80 USD. Earlier, the share price had also declined to this support level from 150 USD during the acute stage of the COVID-19 pandemic, when governments imposed lockdowns and closed borders, which sharply reduced attendance at Disney’s theme parks. This level appears to be a key support for investors, where buying interest in the company’s shares tends to increase.

As of May 2025, the DIS stock is trading between 80 USD and 121 USD. The release of the quarterly earnings report triggered a rise in the share price, bringing it close to the upper boundary of this range. Based on the current Walt Disney Company stock performance, the possible price movements for 2025 are as follows:

The baseline forecast for Walt Disney’s shares suggests that the price may test the 121 USD resistance level and, if it breaks above it, climb to 150 USD.

The negative forecast for Walt Disney’s stock predicts a dip from the current level, with the share value potentially dropping to the 80 USD support level.

Risks of investing in The Walt Disney Company stock

Investing in Walt Disney’s shares may be attractive due to its brand’s strength and diversified business model. However, there are certain risks that investors should consider:

• Dependence on consumer spending: Disney highly depends on revenues from entertainment-related sectors (theme parks, films, and streaming services). During economic downturns, consumers typically cut back on non-essential spending, such as entertainment, which negatively affects the company’s income
• Competition in media and streaming: the streaming market is highly saturated and diverse. While Disney+ has growth potential, retaining its current position requires substantial investments in content, which drives up costs. Since the company cannot focus solely on one type of business (unlike Netflix, where streaming is the primary source of revenue), there is a risk that its influence in this market could diminish
• Development costs and debt obligations: Disney invests in new projects, such as theme parks, streaming content, and technology. These investments increase the company’s debt burden. If interest rates rise in the US, refinancing debt would be more expensive, increasing the cost of servicing the debt and negatively impacting Disney’s overall profitability
• Brand and reputation risks: scandals involving the company’s management or products can damage its reputation. Decisions related to the release of films and series perceived as controversial could lead to rejection or even boycotts from certain audience segments

Disney’s shares can offer holders attractive long-term prospects, especially if the streaming business succeeds. However, investors must consider the abovementioned risks and diversify their portfolios accordingly.