Disney‘s streaming revenue increased 6% and the segment turned a profit of $346 million during the three-month period ended June 28, the company reported in its quarterly earnings results Wednesday.
But it was higher sales and operating profit at Disney’s domestic parks business that helped the Mouse House beat Wall Street earnings expectations for the quarter, while linear TV networks took a hit following the close of Disney’s Star India transaction.
By the end of June, Disney reported its combined Disney+ and Hulu subscribers reached 183 million, an increase of 2.6 million versus the previous January-March quarter. Core Disney+ subscribers stood at 128 million, up 1.8 million sequentially. (Disney said back in May it had expected “modest increase” in Disney+ subs for the June 2025 quarter.) Hulu subscribers reached 55.5 million, a net gain of 800,000.
For the July-September 2025 period, Disney is projecting total Disney+ and Hulu subscriptions to increase by more than 10 million, primarily drive by the company’s expanded Charter deal.
Revenue rose 8% to $9.1 billion in Disney’s experiences segment, which counts revenue from the U.S. and international theme parks as well as consumer products. A good portion of that increase is attributed to the domestic parks, as well as growth at Disney Cruise Line.
Disney’s domestic linear TV business, which includes ABC, saw revenue fall 4% to $2.1 billion while operating income dropped 14% to $587 million. International networks revenue fell 58% due to the Star India deal.
At ESPN, which announced that its new streaming offering will launch Aug. 21, revenue ticked up 1%, to $4.3 billion, while operating income fell 7%. Disney attributes the weaker results to increased rights costs for NBA and college sports, as well as this being the company’s off year for airing the NHL Stanley Cup Finals. But the future is bright for ESPN: On Tuesday night, Disney announced that the NFL will take a minority stake in the sports outlet, which will gain control over NFL Network and the NFL RedZone highlights service, in addition to seven pro-football games that were being shown via the NFL’s own cable assets.
Disney’s Content Sales/Licensing and Other business within its entertainment segment saw a revenue increase of 7% to $2.3 billion, mainly backed by strong performance for the live-action “Lilo & Stitch” offsetting weaker box office returns for “Thunderbolts*” and “Elio” compared to the prior year’s quarter, which boasted hit “Inside Out 2.”
Overall, Wall Street had forecast adjusted earnings per share of $1.44 on $23.7 billion in revenue for Disney’s latest quarter, according to LSEG Data & Analytics. Disney reported adjusted EPS of $1.61 on $23.7 billion in revenue. That revenue figure was up 2% year over year.
On Tuesday, Disney announced a major deal with the NFL, under which the league will own a 10% stake in ESPN. In return, ESPN will gain control over NFL Network and the NFL RedZone highlights service, in addition to three pro-football games that were being shown via the NFL’s own cable network.
“We are pleased with our creative success and financial performance in Q3 as we continue to
execute across our strategic priorities,” Disney CEO Bob Iger said in prepared remarks. “The company is taking major steps forward in streaming with the upcoming launch of ESPN’s direct-to-consumer service, our just-announced plans with the NFL, and our forthcoming integration of Hulu into Disney+, creating a truly differentiated streaming proposition that harnesses the highest- caliber brands and franchises, general entertainment, family programming, news, and industry-leading sports content. And we have more expansions underway around the world in our parks and experiences than at any other time in our history. With ambitious plans ahead for all our businesses, we’re not done building, and we are excited for Disney’s future.”
(Pictured above: Disney’s live-action “Lilo & Stitch,” which released in theaters May 23 and will soon make its Disney+ debut.)