Walt Disney Reports Strong Q1 2025, Shares Likely to Rise

Walt Disney's Q1 2025 financial results exceeded expectations, showcasing revenue growth and improved EPS. The company's strategy appears to be paying off, providing investors with optimism about future stock performance.

Date: 11-02-2025

AI Rating: 7

Earnings Per Share (EPS)
Walt Disney reported diluted earnings per share of $1.40, which represents a 35% increase year over year. This significant growth exceeded Wall Street expectations, likely instilling confidence among investors.
Revenue Growth
Revenue for the first quarter of fiscal 2025 totaled $24.7 billion, reflecting a 5% increase compared to the previous year. This growth surpasses expectations and augurs well for the company's stock performance.
Operating Income in DTC Streaming
The direct-to-consumer (DTC) streaming operations recorded $293 million in operating income, a notable recovery from a $138 million operating loss the prior year. This positive turnaround will likely generate investor confidence as the company continues on this growth path.
Management's forecast suggests that the entertainment DTC segment will generate $1 billion in operating income for the entire fiscal 2025, indicating strong future earnings potential.
Future Outlook
Disney's management anticipates higher profit margins, with a target 10% operating margin for the DTC segment in fiscal 2026, marking a significant turnaround from a $4 billion operating loss just two years prior. The report indicates that Disney has made critical strides in cutting costs while maintaining strong revenue growth.

Stocks: DIS