Global entertainment and media company Disney (NYSE: DIS) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 5.2% year on year to $25.98 billion. Its non-GAAP profit of $1.63 per share was 3.4% above analysts’ consensus estimates.
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Disney (DIS) Q4 CY2025 Highlights:
- Revenue: $25.98 billion vs analyst estimates of $25.78 billion (5.2% year-on-year growth, 0.8% beat)
- Adjusted EPS: $1.63 vs analyst estimates of $1.58 (3.4% beat)
- Adjusted EBITDA: $6.25 billion vs analyst estimates of $5.22 billion (24% margin, 19.8% beat)
- Operating Margin: 17.7%, in line with the same quarter last year
- Free Cash Flow was -$2.28 billion, down from $739 million in the same quarter last year
- Market Capitalization: $201.4 billion
Company Overview
Founded by brothers Walt and Roy, Disney (NYSE: DIS) is a multinational entertainment conglomerate, renowned for its theme parks, movies, television networks, and merchandise.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Regrettably, Disney’s sales grew at a weak 9.5% compounded annual growth rate over the last five years. This was below our standard for the consumer discretionary sector and is a poor baseline for our analysis.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Disney’s recent performance shows its demand has slowed as its annualized revenue growth of 3.7% over the last two years was below its five-year trend. 
We can better understand the company’s revenue dynamics by analyzing its three most important segments: Entertainment, Sports, and Experiences, which are 44.7%, 18.9%, and 38.5% of revenue. Over the last two years, Disney’s revenues in all three segments increased. Its Entertainment revenue (movies, Disney+) averaged year-on-year growth of 4.2% while its Sports (ESPN, SEC Network) and Experiences (theme parks) revenues averaged 1.3% and 5.4%. 
This quarter, Disney reported year-on-year revenue growth of 5.2%, and its $25.98 billion of revenue exceeded Wall Street’s estimates by 0.8%.
Looking ahead, sell-side analysts expect revenue to grow 7.1% over the next 12 months. While this projection suggests its newer products and services will fuel better top-line performance, it is still below average for the sector.
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Operating Margin
Disney’s operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 15.1% over the last two years. This profitability was inadequate for a consumer discretionary business and caused by its suboptimal cost structure.
In Q4, Disney generated an operating margin profit margin of 17.7%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Disney’s EPS grew at a remarkable 48.6% compounded annual growth rate over the last five years, higher than its 9.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
In Q4, Disney reported adjusted EPS of $1.63, down from $1.76 in the same quarter last year. Despite falling year on year, this print beat analysts’ estimates by 3.4%. Over the next 12 months, Wall Street expects Disney’s full-year EPS of $5.80 to grow 17.9%.
Key Takeaways from Disney’s Q4 Results
We enjoyed seeing Disney beat analysts’ EBITDA expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its Sports revenue missed. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 3.8% to $117.08 immediately following the results.
Indeed, Disney had a rock-solid quarterly earnings result, but is this stock a good investment here? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
