Disney reported its fiscal fourth-quarter earnings on Thursday, narrowly beating analyst estimates as streaming growth helped propel the entertainment segment.

Here’s what Disney reported, compared to what Wall Street expected, according to LSEG

• Earnings per share: $1.14 adjusted versus $1.10 expected
• Gain: $22.57 billion versus $22.45 billion expected

Disney’s net income rose to $460 million, or 25 cents per share, from $264 million, or 14 cents per share, in the same quarter last year. Adjusted for one-time items, including restructuring and impairment charges, Disney reported earnings per share of $1.14.

The segment’s total operating income increased 23% to $3.66 billion compared to the same period in 2023.

Revenue for the entertainment segment – ​​which includes traditional TV networks, direct-to-consumer streaming and movies – rose 14% year over year to $10.83 billion after a hot summer at the box office.

Disney Pixar’s “Inside Out 2” became the highest-grossing animated film of all time this summer, surpassing Disney’s “Frozen II” at the box office. Meanwhile, “Deadpool & Wolverine” became the highest-grossing R-rated film of all time, surpassing Warner Bros. Discovery’s “Joker”.

The films added $316 million in earnings for the entertainment segment during the quarter. In total, the entertainment segment reported a profit of almost $1.1 billion.

Revenue for Disney’s sports segment, which consists primarily of ESPN, remained stable. ESPN’s profit fell 6%, partly due to higher programming costs related to U.S. college football rights and fewer cable customers.

Disney’s combined streaming business, which includes Disney+, Hulu and ESPN+, saw profitability improve during the quarter after posting its first profit during the fiscal third quarter, three months earlier than expected. The division reported operating income of $321 million for the September period compared with a loss of $387 million in the same period last year.

Disney joined his peers, including Warner Bros. Discovery, netflix, Comcast And Big global when adding streaming subscribers during the most recent quarter.

The number of Disney+ Core subscribers – excluding Disney+ Hotstar in India and other countries in the region – grew by 4.4 million, or 4%, to 122.7 million. The number of Hulu subscribers grew 2% to 52 million.

Average revenue per user for domestic Disney+ customers fell from $7.74 to $7.70 as the company had a greater mix of customers on its lower-cost, ad-supported tier and wholesale offerings.

Meanwhile, the company’s traditional TV network business continued to decline as consumers ditch pay-TV bundles in favor of streaming. Network revenues fell 6% to $2.46 billion. Profit for the segment fell 38% to $498 million.

The experience segment, which includes Disney theme parks as well as consumer products, saw revenue grow 1% to $8.24 billion.

Domestic parks operating revenues rose 5% to $847 million, helped by higher guest spending at the parks and cruise lines.

However, operating profit at the international parks fell by 32% due to a decline in visitor numbers and guest spending and increased costs.

The company said Thursday it is “confident in the long-term prospects for the business” and gave guidance for the 2025, 2026 and 2027 budgets.

Disney expects a “modest decline” in the number of Disney+ Core subscribers during the first fiscal quarter of 2025 compared to the previous quarter.

Full-year earnings in the entertainment streaming sector, excluding ESPN+, are expected to show an increase of approximately $875 million compared to the previous fiscal year and rise at a double-digit rate in fiscal 2026.

Disney also expects double-digit percentage growth in fiscal 2025 for its entertainment segment.

However, the experience segment is expected to register only 6% to 8% earnings growth in the coming fiscal year compared to the previous year. Disney noted that its fiscal first quarter will see a $130 million hit due to the impact of Hurricanes Helene and Milton, as well as a $90 million impact from Disney Cruise Line’s pre-launch costs.

During Disney’s fiscal 2025, the company expects adjusted earnings growth in the high single digits compared to the previous fiscal year. The company expects double-digit adjusted earnings per share for both fiscal 2026 and 2027.

This story is developing. Check back later for updates.