Disney’s first quarter of 2025 was marked by a robust performance, with management pointing to strong execution in its Experiences segment, particularly domestic theme parks and cruise operations. CEO Bob Iger cited “all-time highs” for returns on invested capital in Experiences and highlighted the impact of targeted investments in U.S. theme parks. Management also credited the ongoing integration of Hulu content and sports within Disney+ as improving user engagement and reducing churn. The market responded positively, reflecting confidence in Disney’s multi-pronged growth strategy and the resilience of its core businesses.

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

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 Disney’s Q1 Earnings Call

• Ben Swinburne (Morgan Stanley) asked if integrating Hulu and sports into Disney+ has improved engagement and churn. CEO Bob Iger reported higher engagement and lower churn, with plans for further streaming integration and technology upgrades.
• Stephen Khong (Wells Fargo) questioned the rationale for choosing Abu Dhabi for the new theme park and the margin improvement in domestic parks. Iger cited the region’s large, underserved market and infrastructure, while CFO Hugh Johnston clarified that margin gains were broad-based.
• Robert Fishman (MoffettNathanson) asked about confidence in the upcoming film slate and Marvel’s role in Disney’s strategy. Iger highlighted a focus on quality over quantity for Marvel and expressed strong confidence in the upcoming releases.
• Jessica Reif Ehrlich (BofA Securities) sought clarity on advertising trends and the structure of the Abu Dhabi partnership. Johnston noted robust advertising demand, especially in live sports, and Iger emphasized the royalty-based nature of the Abu Dhabi deal.
• David Karnovsky (J.P. Morgan) inquired about the ESPN direct-to-consumer strategy and product differentiation from linear ESPN. Iger described plans for a feature-rich, fully integrated streaming offering to enhance the consumer experience and drive upsell opportunities.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will closely monitor (1) the rollout and adoption of Disney’s ESPN direct-to-consumer offering and its integration with Disney+ and Hulu, (2) progress on U.S. theme park expansions and the Abu Dhabi park partnership, and (3) performance of the upcoming film slate, particularly Marvel and Pixar titles. We will also track international consumer trends, especially in China, and the impact of new cruise ship launches on Experiences segment growth.

Disney currently trades at $124.73, up from $92.07 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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