What Should You Anticipate in Walt Disney’s First Quarter 2025 Earnings Announcement

The Walt Disney Company: An Overview

With a market capitalization of $201.6 billion, The Walt Disney Company (DIS) stands as a powerhouse in the global entertainment industry. Since its founding in 1923 and with headquarters in Burbank, California, Disney has built a vast empire that includes media networks, film and television production, theme parks and resorts, consumer products, and a suite of streaming services. The company is renowned for its ownership of legendary brands such as Disney, Pixar, Marvel, Star Wars, and National Geographic, making it a dominant force in content creation and intellectual property.

Upcoming Earnings and Financial Performance

Disney is preparing to release its financial results for the first quarter of fiscal 2026. Market analysts anticipate the company will post diluted earnings of $1.56 per share, representing an 11.4% decrease from the $1.76 per share reported in the same quarter last year. Despite this expected dip, Disney has consistently outperformed Wall Street’s earnings per share forecasts in each of the past four quarters.

Analyst Expectations for 2026

Looking at the full year, projections suggest Disney will achieve earnings per share of $6.60, marking an 11.3% increase from the $5.93 reported in fiscal 2025.

Image source: www.barchart.com

Stock Performance Comparison

Over the last twelve months, Disney’s stock price has climbed 4%. However, this growth lags behind the S&P 500 index, which advanced 17%, and the Communication Services Select Sector SPDR ETF (XLC), which gained 20.8% during the same period.

Image source: www.barchart.com

Strategic Partnership with OpenAI

On December 11, Disney’s stock rose by 2.4% following the announcement of a groundbreaking three-year partnership with OpenAI. This agreement positions Disney as the inaugural major content collaborator for Sora, OpenAI’s generative AI video platform. Starting in early 2026, Sora and ChatGPT Images will empower users to craft short videos and images using a library of over 200 licensed characters, settings, and assets from Disney, Pixar, Marvel, and Star Wars—excluding the likenesses and voices of talent.

In addition to content licensing, Disney will become a significant OpenAI client, utilizing ChatGPT within its operations and incorporating OpenAI’s technology into Disney+ to enhance subscriber experiences, including curated content generated by Sora. The deal also includes a $1 billion equity investment in OpenAI, with Disney receiving warrants for further equity stakes.

Analyst Ratings and Price Targets

Market sentiment toward Disney remains overwhelmingly positive. Of the 29 analysts covering the stock, 20 recommend a “Strong Buy,” three suggest a “Moderate Buy,” five rate it as a “Hold,” and one assigns a “Strong Sell.” The average price target among analysts is $135.28, implying an 18.5% potential increase from current levels.