Walt Disney Co. has bounced back with a quarter that exceeded Wall Street expectations, driven by the explosive success of Deadpool & Wolverine, the summer’s hit R-rated Marvel blockbuster. This performance, paired with a forward-looking strategy, suggests the entertainment giant is firmly regaining its footing under CEO Bob Iger.
Disney’s shares surged 7.4% in premarket trading as the company unveiled an optimistic forecast for fiscal 2025, projecting high single-digit growth in adjusted earnings per share, despite capital expenditures estimated at $8 billion. Additionally, Disney plans to repurchase $3 billion in stock, signaling confidence in its future performance.
Box Office Success Offsets Challenges Elsewhere
Disney’s fourth-quarter adjusted earnings landed at $1.14 per share, edging past analysts’ estimates of $1.10. Revenue reached $22.6 billion, slightly above forecasts of $22.45 billion, with operating income soaring 23% year-over-year to nearly $3.7 billion. The standout performer was Disney’s Entertainment division, where operating income more than doubled to $1.1 billion. Summer hits like Deadpool & Wolverine, which raked in $1.3 billion at the global box office, and Alien: Romulus, along with the Emmy-nominated Hulu series Only Murders in the Building, were pivotal contributors.
However, not all divisions shared in the triumph. The Experiences and Sports units faced declines in operating income, with international theme parks seeing reduced attendance and ESPN impacted by increased programming and production costs.
Streaming: A Bright Spot in Disney’s Portfolio
Disney’s streaming services continue to gain traction, achieving a second consecutive quarter of profitability with $321 million in operating profit. Disney+, in particular, added 4.4 million subscribers outside India, pushing its global total to 122.7 million. This growth coincides with Disney’s intensified crackdown on password sharing, an effort that mirrors broader industry trends.
Leadership and Vision Under Bob Iger
Returning to helm Disney in late 2022, Bob Iger has implemented aggressive cost-cutting measures and revitalized the company’s film and television strategies after a challenging period of creative misfires. “Thanks to the significant progress we’ve made, we have emerged from a period of considerable challenges and disruption well positioned for growth and optimistic about our future,” Iger said in a statement.
Despite Disney’s recent successes, Iger’s tenure is once again a transitional one. The company has announced plans to name a new CEO by early 2026, handing over the reins as Disney builds on its momentum.
A Legacy of Entertainment Innovation
Disney’s rebound in both streaming and blockbuster filmmaking underscores its ability to adapt in a rapidly evolving entertainment landscape. The record-breaking performance of Deadpool & Wolverine, the first R-rated Marvel film, exemplifies the studio’s willingness to push creative boundaries, while its expanding subscriber base reflects the growing strength of its digital offerings.
As Disney looks ahead to fiscal 2025, bolstered by a strong pipeline of films and series, it’s clear the House of Mouse is navigating its challenges with a renewed focus on innovation and growth. Under Iger’s stewardship, the company is poised to remain a dominant force in global entertainment.
