Disney Surges in Q4 2025 with ‘Zootopia 2’ and 72% Streaming Growth
Disney demonstrated impressive financial results in the fourth quarter of 2025, featuring significant milestones and challenges. The company reported a 5% increase in revenue, reaching $25.98 billion for the quarter ending December 27, 2025. This marked the first quarter of Disney’s 2026 fiscal year.
Key Financial Highlights
- Net Income: $3.69 billion before income taxes, consistent with the previous fiscal year.
- Adjusted Earnings Per Share: Decreased by 7% to $1.63.
- Entertainment Segment Revenue: Increased by 7% due to strong performances from “Zootopia 2” and “Avatar: Fire and Ash.”
- Theme Parks and Products Revenue: Achieved a record $10 billion, up 6%.
- Operating Income: Overall decreased by 9% to $4.6 billion.
Streaming Growth and Performance
Disney’s streaming services, including Disney+ and Hulu, showcased remarkable growth. Revenue from these platforms reached $5.35 billion, reflecting an 11% rise. Notably, operating income from streaming surged by 72% to $450 million, achieving an operating margin of 8.4% for the period. Disney anticipates a full-year operating margin of 10% for fiscal 2026.
Challenges in Content Production
The entertainment segment faced financial pressure due to escalating content and production costs. Marketing expenses also rose significantly, particularly for theatrical releases, with nine films compared to just four in the previous year. Additionally, ESPN’s operating income suffered a $110 million decline resulting from a two-week blackout on YouTube TV.
CEO Transition and Future Outlook
Disney’s board of directors is set to name a successor to CEO Bob Iger, who plans to step down in 2026 as his contract nears completion. Reports indicate that Josh D’Amaro, head of the Disney Experiences division, is the leading candidate for this role.
The Impact of “Zootopia 2”
The release of “Zootopia 2” has been a significant contributor to Disney’s financial success, becoming the highest-grossing animated film of all time. This blockbuster, alongside “Avatar: Fire and Ash,” helped boost overall revenue within Disney’s entertainment sector.
Looking Ahead
Disney has opted to stop publicly disclosing subscriber numbers for Disney+ and Hulu, stating these metrics have become less valuable for evaluating its performance. This change aligns with practices adopted by other streaming services like Netflix.
As Disney navigates through an evolving media landscape, the company remains focused on its strategic growth in streaming, while managing challenges present in its traditional businesses.
