Disney Exceeds Q1 2025 Profit Forecasts but Loses Disney+ Subscribers

Disney released first-quarter financials, and earnings surpassed analysts’ expectations. However, the entertainment behemoth’s streaming service, Disney+, is bleeding subscribers.

The entertainment giant reported revenue of $24.69 billion in the quarter, beating projections of $24.62 billion. Company stockholders earned an adjusted $1.76 per share, much better than Wall Street’s predictions of $1.45, according to CNBC. Net income surged 23%, hitting $2.64 billion.

“Our results this quarter demonstrate Disney’s creative and financial strength as we advanced the strategic initiatives set in motion over the past two years,” said CEO Robert Iger in the earnings statement. “Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth.”

Disney’s solid Q1 2025 financial performance reflects its success at the box office. The release of “Moana 2” at Thanksgiving was a win for the company, with $221 million in ticket sales over the five-day holiday weekend. Licensing and merchandising deals related to the movie also enhanced earnings.

Disney Streaming Services

While Disney+, turned a profit for the first time in the third quarter of 2024, the entertainment company warned in the fourth quarter that paid subscriptions would likely decrease. The most recent estimate of subscribers is approximately 124.6 million, which is about 700,000 less than what Disney reported late last year.

In the U.S., the streaming service’s subscriptions actually increased by 1%, but it was a 2% fall in international subscribers that contributed to the overall loss. According to the company, another “modest decline” of subscribers is expected in Q2 2025.

Subscriptions to Disney-owned Hulu grew 3%, adding 1.6 million subscribers in the first quarter. Revenue was up 9%, earning $6.07 billion, and operating income was a positive $293 million.

Revenue for the company’s sports network, ESPN, was $4.81 billion, an increase of 8% compared to Q1 2024. Operating income rose a significant 15%, coming in at $228 million.

After Disney gave up on a joint sports venture with Fox and Warner Bros. Discover called Venu, the company has been looking at other strategies for subscriber growth in this segment. The current plan is the launch of an expanded ESPN app later this year.

“We’re obviously leaning into the development of what is now called ‘Flagship,’ which is essentially ESPN with multiple, multiple elements to it,” stated Iger.