The Walt Disney Company (DIS) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full-year results, with revenue up 3% to $91.4B and Q4 revenue at $22.6B, reflecting successful growth strategies and creative revitalization.

• Achieved profitability in combined DTC streaming businesses in Q4, with Entertainment DTC services turning profitable for the first time.

• Disney led US viewership across all formats in September, marking the 9th time in 11 months.

• Inside Out 2 and Deadpool & Wolverine became the year's top two movies, pushing Disney past $4B at the global box office.

• Experiences segment remains industry gold standard, with targeted investments in parks, cruise ships, and consumer products.

Financial highlights

• Q4 revenue rose 7% year-over-year to $22.6B; full-year revenue up 3% to $91.4B.

• Q4 diluted EPS was $0.25 (up 79%); adjusted EPS was $1.14 (up 39%).

• Full-year diluted EPS was $2.72 (>100% increase); adjusted EPS was $4.97 (up 32%).

• Q4 total segment operating income increased 23% year-over-year to $3.7B; full-year total segment operating income up 21% to $15.6B.

• Free cash flow for the year rose 75% to $8.6B; cash provided by operations up 42% to $14.0B.

Outlook and guidance

• High single-digit adjusted EPS growth expected in 2025, with double-digit growth in 2026 and 2027.

• Fiscal 2025: ~$15B cash from operations, ~$8B capex, $3B in stock repurchases, and dividend growth tracking earnings.

• Experiences segment operating income guided to 6%-8% growth for 2025, with Q1 negatively impacted by hurricanes and pre-launch costs, but improvement expected through the year.

• Sports operating income growth guided for 2026, coinciding with ESPN Flagship DTC launch.

• Content spend to grow incrementally, especially for international markets, but not disruptively.