Walt Disney Co. on Thursday reported earnings that beat Wall Street expectations, driven by blockbuster ticket sales for the rude and irreverent summer Marvel movie “Deadpool & Wolverine,” and offered a positive outlook for next year.
The company projected adjusted earnings per share growth in fiscal 2025 to be in the high single digits, even with capital expenditures of approximately $8 billion.
The company also announced plans to buy back shares worth $3 billion.
Disney shares rose 10.2% to $113.17, a six-month high.
The entertainment giant's recent success in movie theaters helped offset declines in operating income at the company's Experiences and Sports divisions.
Declining attendance at overseas locations depressed theme park performance, and soaring programming and production costs took a toll on ESPN.
Disney reported adjusted earnings per share of $1.14 for the fiscal fourth quarter ended September. This compares to the consensus estimate of $1.10 per share, according to analysts surveyed by LSEG.
Revenue reached $22.6 billion, slightly above Wall Street expectations of $22.45 billion.
Operating income rose 23% year over year to nearly $3.7 billion.
CEO Bob Iger, who returned to the company from retirement in November 2022, worked to revitalize the company's film and television division, which had been in a slump, and aggressively cut costs.
“We have emerged from a period of great challenge and disruption,” Iger told investors. “We are well positioned for growth.”
Disney announced last month that it would name a new chief in early 2026.
The new boss replaces Mr. Iger, who returned to the company to take the top job after the board fired its hand-picked CEO.
At a time when peers like Warner Bros. Discovery CEO David Zaslav are predicting a wave of media consolidation brought about by the incoming Trump administration, Iger said he doubts Disney will make more deals to shore up its entertainment portfolio. He said there was no need to do so.
The company's acquisition of 21st Century Fox in 2019 brought a collection of assets that helped fuel Disney's record Emmy win, the success of its “Avatar” film series and its dominance of the Hulu streaming service.
“We are already integrated in many ways,” Iger said. “To succeed in a fundamentally disruptive media world, we don't need any more assets right now, both from a distribution perspective and from a content perspective.”
Disney Chief Financial Officer Hugh Johnston said Disney had similarly considered, but later rejected, the sale of its television assets, as Comcast said it was currently considering.
“As we went through the calculations, it became very clear that Disney didn't have an opportunity for valuation,” Johnston said. “I can't talk to other companies.”
Operating profit for the entertainment segment, which includes movies, television and streaming, reflected the return of Hulu's Emmy-nominated comedy “Only Murders in the Building” and summer film “Deadpool & Wolverine,” among others. That more than doubled to $1.1 billion in the quarter. ” and the first R-rated Marvel movie, “Alien: Romulus.” The movie “Deadpool” brought in $1.3 billion in box office revenue worldwide.
Disney+, Disney's flagship streaming video service, boasts more than 122.7 million subscribers outside India, an increase of 4.4 million from the previous quarter.
The company tightened its crackdown on password sharing in September.
Disney+, Hulu and ESPN+ brought in operating profits of $321 million in the quarter, marking the streaming service's second straight profitable quarter.
Iger said Disney will add the ESPN tile to its Disney+ streaming service on Dec. 4 in preparation for its flagship sports network to begin streaming next fall. In addition to live sports streaming and commentary, it will also offer new features such as sports betting.
In the future, he said, the company could use artificial intelligence to customize the viewing experience and offer a personalized version of SportsCenter.
“It will be designed to allow ESPN to serve consumers in the most engaging way we have ever served them,” Iger said.
Operating profit at Disney's Experiences division, which includes parks and consumer products, fell 6% to $1.66 billion.
The company reported a 32% decline in international park operating profit, reflecting the cost of building new attractions and competitions in Paris due to the Olympics.
Operating profit for the sports division, which includes ESPN networks and Star India operations, fell 5% to $929 million.
ESPN has experienced rising programming and production costs for college football broadcasts.
For the full year, domestic operating profit was 6% higher than in 2023, with double-digit growth in advertising revenue boosting results.
In addition to its 2025 forecast, Disney said it expects double-digit adjusted EPS growth in 2026 and 2027.
“When you put it all together, our strategy is working, it's working very well, and we have a lot of visibility into where that strategy is going to take us,” Hugh Johnston, Disney's chief financial officer, said in an interview. I have it,” he said.
