Disney stock jumps as earnings, streaming profit, and guidance top estimates

Disney Shares Surge 6% Amid Blockbuster Film Success and Streaming Growth

Disney’s stock soared over 6% on Thursday following strong fourth-quarter earnings, fueled by the box office success of Marvel’s Deadpool & Wolverine and Pixar’s record-breaking Inside Out 2. The entertainment giant reported a 39% increase in profit compared to the same period last year, easing investor concerns about its performance at the box office.

Disney CEO Bob Iger celebrated the results, calling it “one of the best quarters in the history of our film studio.”

The impressive earnings were driven not only by film successes but also by significant progress in the streaming division. Disney+ and Hulu reported a combined operating profit of $253 million, contributing to a total streaming operating income of $321 million, which reversed a $387 million loss from the previous year. This figure also includes earnings from ESPN+, which added to the division's solid recovery.

Investors were optimistic about the results, pushing Disney shares up by 6.3% by the end of the day — the stock’s largest one-day gain since February. Early trading on Wall Street saw the stock climb as high as 11.8%.

Looking ahead, Disney anticipates a strong holiday season, with high expectations for the releases of Moana 2 and Mufasa: The Lion King. Chief Financial Officer Hugh Johnston expressed confidence in Disney’s creative resurgence, calling it the company’s “biggest value creator” as it impacts every aspect of the business.

Challenges in the Parks Division

While films and streaming impressed, Disney’s theme parks and experiences division faced mixed results. Although American visitors increased their spending at domestic parks and on cruises, weaker performance at Disneyland Paris and Shanghai Disney offset these gains. Despite the challenges, the division posted record revenue and operating income for the year.

Disney remains bullish about the future of its experiences segment. The company plans to invest $60 billion into its theme parks and cruise lines over the next decade, with two new cruise ships slated for launch in 2026. Disney expects the division to achieve operating income growth of 6–8% in the coming year, with "high single-digit growth" forecasted for 2026.

Financial Highlights

For the fiscal fourth quarter, Disney reported a net income of $460 million, up from $264 million a year ago. Adjusted earnings of $1.14 per share surpassed Wall Street estimates of $1.09. Revenue increased by 6% to $22.6 billion.

Iger, who returned to Disney two years ago, has implemented a broad cost-cutting and restructuring plan. While the stock has risen under his leadership, it still lags behind the broader market.

Looking forward, Disney plans to repurchase $3 billion in shares by 2025 and align dividend growth with earnings.