Disney (DIS) is set to report fiscal third quarter results before the bell on Wednesday. Investor attention is squarely on its sports strategy amid reports that ESPN has reached a deal to acquire key NFL Media assets, including NFL RedZone, in exchange for an equity stake of up to 10% in the network.
Sports remain a central pillar of Disney’s streaming strategy as ESPN prepares to launch a new standalone service this fall. Analysts see the debut as a key step toward more bundling opportunities with Disney+ and Hulu as streamers across the industry work to retain subscribers and reduce churn.
Here’s how Wall Street expects Disney to perform, according to consensus estimates compiled by Bloomberg:
-
Total revenue: $23.68 billion versus $23.16 billion in Q3 2024
-
Adjusted earnings per share: $1.46 versus $1.39 in Q3 2024
-
Entertainment revenue: $10.82 billion versus $10.58 billion in Q3 2024
-
Parks and Experiences revenue: $8.87 billion versus $8.39 billion in Q3 2024
-
Sports revenue: $4.44 billion versus $4.56 billion in Q3 2024
-
Disney+ subscriber net additions: 2.05 million versus 7.7 million in Q3 2024
“With the NFL as an investor, ESPN’s long-term future is incrementally more secure,” Morgan Stanley analyst Ben Swinburne wrote in a note previewing the results.
“While the NFL cannot stop cord-cutting and will surely not give Disney a discount in future rights renewals, by investing in ESPN, the NFL will be even more motivated to help ESPN survive and potentially thrive in the new streaming-first world ahead,” he wrote.
Read more: Live coverage of corporate earnings
In May, Disney raised its full-year profit forecast to $5.75 a share, marking a 16% increase from fiscal 2024.
“If the macro backdrop remains healthy, we see Disney generating healthy double-digit adjusted EPS growth in the years ahead,” Swinburne added, raising his price target on the stock to $140 from the prior $120.
Disney stock has rebounded about 7% since the start of 2025 but still slightly lags the broader S&P 500 (^GSPC).
The push into streaming comes as Disney continues to adapt to the mass exodus of pay-TV subscribers.
In June, the company laid off several hundred employees across its global operations in a bid to streamline costs, with cuts impacting areas such as TV marketing, publicity, and corporate finance. In a statement to Yahoo Finance, Disney said at the time that it had taken a “surgical” approach to minimize the number of impacted roles, adding that no entire teams were being eliminated.
Since 2023, Disney has cut more than 8,000 jobs as part of a $7.5 billion cost-savings initiative.
Beyond sports and streaming, Disney’s Parks and Experiences segment remains a key growth driver. Wall Street analysts expect operating income from the unit to accelerate in fiscal 2026, fueled by new cruise ships and the continued ramp-up of international and domestic park expansions.
In a notable push abroad, the company recently announced plans to open a new theme park and resort in Abu Dhabi — its first major expansion into the Middle East and its seventh global resort. The move comes as fresh competition emerges closer to home following the debut of NBCUniversal’s Epic Universe in May.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
