01—Abstract
Summary
Summary of the 10-K filed November 13, 2025. Cited figures are marked; the original filing is the authoritative source.
The Walt Disney Company's (DIS) fiscal year 2025 filing reveals a resilient performance characterized by a 3% increase in total revenues, reaching $94.4 billiona, and a substantial surge in net income attributable to Disney, which more than doubled to $12.4 billion, translating to a diluted EPS of $6.85.
This significant improvement in profitability was driven by robust growth in the Entertainment and Experiences segments, a lower effective tax rate due to a non-cash tax benefit related to Hulu's tax classification, and the favorable comparison to prior year impairment charges, including those associated with the Star India transaction. The company has demonstrated strategic financial management, with operating cash flow increasing by 30% to $18.1 billionb.
Despite a planned increase in capital expenditures to $9 billionc for fiscal 2026, primarily for park and resort expansion, the company maintained a strong liquidity position. Disney also continued its commitment to shareholder returns through dividends and a significant share repurchase program, with plans for $7 billion in repurchases in fiscal 2026.
02—Key points
Key Highlights
- Total revenues increased by 3% to $94.4 billion in fiscal year 2025.
- Net income attributable to Disney more than doubled, reaching $12.4 billion ($6.85 diluted EPS), driven by segment performance and tax benefits.
- Operating cash flow saw a significant increase of 30% to $18.1 billion.
- The Experiences segment demonstrated strong revenue growth of 6%, reaching $36.2 billion, indicating a healthy demand for theme parks and resorts.
- The Direct-to-Consumer (DTC) segment achieved an operating income of $1.3 billion, a substantial improvement from the prior year, signaling progress towards profitability in streaming services.
- The company plans to increase capital expenditures to $9 billion in fiscal 2026, focusing on expanding its Parks & Experiences segment.
- Disney continues to prioritize shareholder returns, with planned share repurchases of $7 billion in fiscal year 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed November 13, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $94.42B$91.36B | +3.4% |
| SG&A Expenses | $16.50B$15.76B | +4.7% |
| Operating Expenses | $80.59B$79.45B | +1.4% |
| Operating Income | $17.55B$15.60B | +12.5% |
| Interest Expense | -$1.81B-$2.07B | +12.5% |
| Net Income | $12.40B$4.97B | +149.5% |
| EPS (Basic) | $6.88$2.72 | +152.9% |
| EPS (Diluted) | $6.85$2.72 | +151.8% |
| Shares Outstanding (Basic) | 1.80B1.82B | −1.2% |
| Shares Outstanding (Diluted) | 1.81B1.83B | −1.1% |
05—Questions
Frequently Asked Questions
What were the main drivers of Disney's revenue growth in fiscal year 2025?
Disney's total revenues grew by 3% to $94.4 billion in fiscal year 2025. This growth was primarily driven by an increase in service revenues, which rose by 3% to $84.6 billion. Key contributors included higher subscription revenue from DTC services, growth in the Parks & Experiences segment, and an increase in content sales and licensing. Product revenues also saw a modest increase.
How did the Direct-to-Consumer (DTC) segment perform in fiscal year 2025?
The Direct-to-Consumer segment showed significant improvement, achieving an operating income of $1.3 billion, a substantial increase from $143 million in the prior year. This turnaround was fueled by an 8% increase in segment revenue to $24.6 billion, largely due to an 11% rise in subscription fees driven by price increases and subscriber growth across Disney+ and Hulu. While advertising revenue remained relatively flat, the overall operational efficiency and subscriber gains indicate positive momentum for the DTC business.
What is Disney's outlook for capital expenditures and shareholder returns?
Disney expects to increase its capital expenditures to approximately $9 billion in fiscal year 2026, a rise from $8 billion in fiscal 2025. This increased investment is primarily targeted at expanding its Parks & Experiences segment, including new attractions and resort developments. The company also remains committed to shareholder returns, with plans to repurchase $7 billion of its common stock in fiscal year 2026, in addition to its regular dividend payments.
Were there any significant one-time items or impairments impacting the financial results in fiscal year 2025?
Fiscal year 2025 included several notable items impacting the financial results. A significant non-cash tax benefit of approximately 26 percentage points was recognized due to a change in Hulu's U.S. income tax classification. The company also reported restructuring and impairment charges totaling $819 million, primarily related to impairments of equity investments. The prior year, fiscal 2024, included substantial restructuring and impairment charges of $3.6 billion, including goodwill impairments and impairments related to the Star India Transaction.
06—Continue