Disney’s third quarter saw flat year-over-year revenue and a significant market selloff after results missed Wall Street’s sales expectations. Management emphasized that growth in streaming operating income, improved margins, and robust performance in the Experiences segment were key positives. CEO Bob Iger highlighted the global appeal of recent film releases and the turnaround in direct-to-consumer profitability, noting, “Our DTC business was running a $4 billion operating loss just three years ago.” However, a cautious tone emerged around domestic park attendance and the evolving competitive landscape in media.

Is now the time to buy DIS? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Disney’s Q3 Earnings Call

• Ben Swinburne (Morgan Stanley) asked about early ESPN app adoption and cash flow growth. CEO Bob Iger described new user sign-ups, high bundle uptake, and advertiser interest, while CFO Hugh Johnston explained the strong cash flow outlook reflects both earnings growth and investment discipline.
• Steven Cahall (Wells Fargo) questioned growth expectations for the studio segment and impact of the YouTube TV dispute. Iger emphasized confidence in the upcoming slate, and Johnston said guidance accounts for ongoing negotiations, with some hedging on potential subscriber shifts.
• Robert Fishman (MoffettNathanson) inquired about Disney Plus evolving into a “super app” and the path to sustained streaming revenue growth. Iger discussed integrating Disney’s offerings and AI features, while Johnston stated the company aspires to double-digit top-line growth in streaming.
• Jessica Reif Ehrlich (Bank of America Securities) asked about Disney’s M&A appetite and advertising outlook. Johnston reiterated a preference for organic growth, citing a strong IP portfolio, and projected continued ad growth driven by sports and improved rates.
• Michael Morris (Guggenheim) probed on Experiences segment growth drivers and NBA rights investment. Johnston cited cruise expansion and consumer products as key, and explained the NBA deal should deliver audience and advertiser benefits over time.

Catalysts in Upcoming Quarters

In the coming quarters, our team will be focused on (1) the impact of Disney’s unified streaming app rollout and AI-driven personalization features, (2) the performance of new film releases and their effect on consumer products and theme park demand, and (3) the success of cruise expansion and international content initiatives. Developments in advertising markets and the resolution of key distribution negotiations will also be important to track.

Disney currently trades at $104.87, down from $116.65 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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