Disney’s streaming focus continues to pay off

You know when you’re wearing your best outfit, and the sun is shining, and you’re on your way to something fun and fabulous, and everything is right in the world?

Disney is feeling like that right now—for a very different reason.

In its Q4 2024 earnings report, the media behemoth was impressively bullish for the next few years, saying in its guidance Disney was “confident in the long-term prospects for the business.” Disney anticipates double digit adjusted EPS growth in fiscal 2026 and 2027.

Why the (frankly intimidating) confidence? Probably because its long-running shift away from cable TV has been paying off.

In its last earnings report, back in August, Disney’s streaming business finally became profitable, after significant annual losses. So, when that upward trend continued into Q4 this year, it was the good sign everyone wanted to see.

For Q4, Disney’s streaming businesses, including Disney+, Hulu, and ESPN+, posted an operating income of $321 million, a dramatic jump from the $387 million loss reported in the same quarter last year.

And cable TV proved why it continues to be such a laggard. Income for the company's traditional TV networks dipped 38% to $498 million, while revenue fell 6% to $2.5 billion. On the company’s earnings call, Disney CFO Hugh Johnston said the company’s streaming profit works as a “natural hedge” against its more troubled broadcast networks.

Not everything was totally rosy, though. The company noted that Q1 2025 will see a $130 million hit to operating income due to damage fromfrom Hurricanes Helene and Milton, plus another $90 million on account of pre-launch costs for Disney Cruise Line.

Across the business, Disney reported $22.6 billion in revenue, a 6% jump the previous year. The company’s net income, which came in at $460 million, marked a 74% climb from the year prior, per the Wall Street Journal.