The Walt Disney Company had a strong Q3, with overall revenue increasing slightly thanks to success in its experiences and streaming business. The company also made a few significant streaming announcements. Here are some key takeaways from the earnings report and call today. 

Q3 revenue: US$23.7 billion, up from US$23.2 billion in Q3 2024

Disney+ subscribers: 127.8 million, up 1.8 million from Q2 2025. Disney+ and Hulu subscribers combined are 183 million (up 2.6 million from last quarter).

Disney’s direct-to-consumer revenue: US$6.1 billion, up 6% from US$5.8 billion in Q3 2024. The segment’s operating income also jumped to US$346 million in Q3, up from a US$19 million loss the year before. 

Hulu is being combined into Disney+: The unified app will be available to consumers next year, a Disney spokesperson tells Kidscreen. Standalone subscriptions for Hulu and for Disney+ will continue to be available, as will bundle subscriptions.

Internationally, Hulu will be pushed as Disney’s general entertainment brand. Outside the US, Disney’s general entertainment content is currently available under the Star tile, and this will be replaced by a Hulu tile. (There are already tiles for Star Wars, Marvel and National Geographic that lead to content from these brands.) This is just a branding change to position Hulu as Disney’s global general entertainment brand, according to the company.

Why the integration: “This will create an impressive package of entertainment, pairing the highest-caliber brands and franchises, great general entertainment, kids programming, news and industry-leading live sports content all in a single app,” Disney CEO Bob Iger said on the earnings call. “By creating a differentiated streaming offering, we will be providing subscribers tremendous choice, convenience, quality and enhanced personalization, while at the same time continuing to grow profitability and margins in our entertainment streaming business through expected higher engagement, lower churn, operational efficiencies and greater advertising revenue potential.”

No more subscriber numbers: Disney announced it is going to stop reporting the number of subscriptions to its Disney+ and Hulu streaming services in its quarterly reports, starting in Q1 fiscal 2026. That’s an approach Netflix took last year. Disney claims these numbers have “become less meaningful to evaluating the performance of our business,” according to a statement shared by management.

The quarter’s big brand: The new Lilo & Stitch (pictured) film drove success across the company’s businesses. The original 2002 film and its sequel and spinoff series earned 640 million hours streamed globally. The brand is also on pace to become Disney’s second-largest licensed merchandise franchise this year, beaten only by Mickey Mouse. The success of the new film, which has earned more than US$1 billion, has prompted Disney to put a sequel into development. 

Linear down: Total revenue (domestic and international combined) for Disney’s liner networks was down 15% to US$2.27 billion.

Experiences were strong: Thanks to customers spending more at Disney’s theme parks and booking more nights on its cruise ships, this segment had revenue of US$6.4 billion, up 10% from Q3 2024. 

Content sales/licensing results: The segment’s revenue was up 7% to US$2.25 billion. The smaller growth compared with the company’s other segments was because this year’s titles didn’t perform as strongly as last year’s blockbuster Inside Out 2. 

Q4 fiscal 2025 outlook: The company expects to increase its Disney+ and Hulu subscriptions by more than 10 million compared with this quarter.

Fiscal year 2025 expectations: The company expects operating income to grow across its major segments, highlighting operating income growth of 8% in experiences, and entertainment direct-to-consumer income of US$1.3 billion.

Iger’s thoughts: “We are pleased with our creative success and financial performance in Q3 as we continue to execute across our strategic priorities,” the CEO said. “The company is taking major steps forward in streaming with the upcoming launch of ESPN’s direct-to-consumer service, our just-announced plans with the NFL and our forthcoming integration of Hulu into Disney+, creating a truly differentiated streaming proposition that harnesses the highest caliber brands and franchises, general entertainment, family programming, news and industry-leading sports content.”

Image courtesy of The Walt Disney Company.