A statue of Walt Disney and Mickey Mouse graces the front yard of Cinderella Castle at Magic Kingdom Park, setting the stage for a pivotal moment as Disney prepares to release its fiscal fourth-quarter earnings on Thursday. Wall Street's attention will be sharply focused on the performance of Disney's streaming and theme park divisions, as well as updates on the search for CEO Bob Iger's successor.
Analysts surveyed by LSEG expect the following key numbers for Disney's next earnings report:
- Earnings per share: Expected at $1.10
- Income: Expected to reach $22.45 billion
The profitability of Disney's streaming services has become a key area of concern. In the previous quarter, Disney's combined streaming operations, which include Disney+, Hulu and ESPN+, posted a profit for the first time. This milestone marks a significant achievement in the context of increasing competition in the streaming landscape.
Subscriber growth will be a crucial metric to keep an eye on, especially as competitors have recently announced substantial increases in their subscriber bases. Warner Bros. Discovery reported that its Max service added 7.2 million subscribers, Netflix gained 5 million and Comcast's Peacock saw an increase of 3 million users.
As the media industry shifts focus toward profit-driven strategies, attention is turning to advertising revenue and measures to combat password sharing. Mike Proulx, director of research at Forrester, noted: “With Max's impressive subscriber growth pitted against Netflix's slower pace, all eyes are on Disney's streaming metrics. While the crackdown on password sharing may provide a temporary boost, its long-term effects remain uncertain.”
Additionally, the performance of Disney theme parks will be under scrutiny. Consumer demand in the United States has shown signs of slowing, but Disney reported stable attendance figures in the latest quarter, particularly at its national parks.
In a related development, Disney announced plans to name CEO Bob Iger's successor in early 2026, with the process overseen by incoming chairman of the board James Gorman. Investors will be looking for insights into this transition and the potential implications for the company's future direction.
As Disney approaches this earnings report, stakeholders are poised to gain valuable insights into both its current performance and strategic outlook, particularly in the competitive streaming landscape and the evolving dynamics of its theme park operations.
