Disney (DIS) just posted its latest earnings, and while the headline numbers weren’t explosive, the deeper story suggests something more powerful is starting to unfold. This quarter hints at a shift in where Disney’s real momentum is coming from.
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The company beat profit expectations, with adjusted earnings per share landing at $1.61 compared to the $1.45 analysts expected. Revenue came in at $23.65 billion, just a touch below the forecast. This type of mixed result might seem underwhelming at first glance. But if you look closer, the story that’s emerging is about more than just a single quarter. Disney’s growth engine is starting to change, and the pieces are beginning to fall into place.
Disney Streaming Isn’t Just Improving, It’s Finally Working
Disney’s streaming division, which for years was a drag on profits, finally crossed into the black. It delivered $346 million in operating income this quarter and managed to grow revenue by about 6%. Subscriber numbers also ticked up, with Disney+ and Hulu now reaching a combined 183 million users worldwide.
This shift is important. Disney has been positioning itself as a digital-first company for a long time, but the numbers have often told a different story. Now the platform is actually pulling its weight. Margins are improving, bundling is gaining traction, and churn is stabilizing. With ESPN’s direct-to-consumer launch on the way, Disney could be setting the foundation for a broader digital ecosystem that finally starts to compound.
Parks and Cruises Are Quietly Carrying the Company
Disney’s physical businesses are still the steady hand. The Parks and Experiences segment grew operating income by 13%, thanks to strong performance from U.S. parks and cruise lines. Per-guest spending was up, and demand for cruises remained high.
While everyone focuses on streaming and media rights, this segment continues to deliver cash flow quarter after quarter. It offers insulation from ad cycles and streaming volatility. Disney’s ability to operate successful physical experiences gives it flexibility that most media peers lack.
The ESPN-NFL Deal Could Be the Real Game Changer
Alongside earnings, Disney announced that the NFL will take a 10% stake in ESPN in exchange for key media assets like NFL Network and distribution rights for RedZone. It is a major shift in how the league and the media giant work together.
This deal is about more than content. It gives the NFL a vested interest in ESPN’s success, just as the network gears up to launch its streaming service. That could translate into better access, more exclusivity, and deeper alignment. For Disney, it also positions ESPN as more than just a mature asset. It becomes part of a long-term strategic plan tied directly to sports dominance and digital expansion.
Despite the beat, the stock’s immediate reaction was muted. Investors are waiting to see if this quarter was the start of a trend, not just a post-COVID rebound or a one-time boost.
Is Disney Stock a Good Buy?
According to data from TipRanks, 20 analysts have issued ratings in the last three months. Of those, 17 rate it a Buy, three say Hold, and none have issued a Sell. That puts Disney in “Strong Buy” territory.
The current 12-month DIS price target sits at an average of $135.80, implying nearly 15% upside from the last close at $118.32.
