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Walt Disney Co

CIK: 1744489 Filed: November 13, 2025 10-K

Key Highlights

  • Theme parks and merchandise generated $9.1B profit (15% of total).
  • Disney+ subscribers reached 150M (+14M in 2023).
  • Global parks revenue surged (Europe +28%, Asia-Pacific +66%).

Financial Analysis

Walt Disney Co Annual Report - 2023 Performance Breakdown
Your no-nonsense guide to Disney’s year, updated with fiscal 2023 data (through Sept 30, 2023).

What Disney Does & How 2023 Went

Disney creates magic through movies (Avatar, Marvel), theme parks, TV networks (ABC, FX), streaming (Disney+/Hulu), and Broadway shows. This year was split: parks and merchandise thrived, while streaming losses and ESPN’s cable decline weighed on results.

The Financial Picture: Growth or Trouble?

  • Revenue: $88.9 billion (up 7% from 2022).
    • Parks/Merch: $32B (+12%)
    • Movies/TV Licensing: $25B (flat)
    • Streaming: $18B (+10% revenue, but still lost -$4B)
  • Profit: $3.4B net income (vs. a loss in 2022).
  • Verdict: Growing overall, but streaming remains a money pit.

2023 Wins

  1. Theme Parks & Merchandise (Carried the Company!)

    • Ticket sales: $15B (+12%) – thanks to pricier add-ons like Genie+ passes.
    • Food/Merch: $10B (+9%) – $8 churros and $45 lightsabers work!
    • Global parks crushed it:
      • Europe: Revenue up 28% to $13.2B.
      • Asia-Pacific: Revenue surged 66% to $10.8B.
    • Why it matters: Parks generated $9.1B profit (15% of Disney’s total).

  2. Movies & TV Licensing

    • Blockbusters: Avatar 2 and Guardians 3 earned $4.3B globally.
    • Hidden revenue: $1.2B from Hulu/ABC for airing ESPN content.

  3. Disney+ Subscribers: 150M total (+14M this year).

2023 Challenges

  1. ESPN’s Decline

    • Cable collapse: Revenue dropped 8% to $14B.
    • Profit fell 34% to $1.9B – worst drop in years.
    • Bright spot: ESPN+ subscriptions are growing, but not fast enough.

  2. Streaming Losses

    • Disney+/Hulu lost -$4B (Marvel shows and movies are expensive!).

  3. Movie Flops

    • Ant-Man 3 earned just $476M globally (Disney keeps ~50% of that).

Financial Health Check

  • Cash: $12B (down slightly from tech upgrades).
  • Debt: $47B (improved from 2022, but big loans start coming due in 2026).
  • Risky Debt Terms: Some loans have variable interest rates tied to global benchmarks.
  • Tax Trouble: $1.2B in tax credits expire starting in 2026.
  • Verdict: Stable today, but debt and interest rates could bite later.

Top Risks for Investors

  1. Streaming Uncertainty: Can Disney+ turn a profit before subscribers get bored?
  2. ESPN’s Identity Crisis: Cable is dying, and streaming sports is hyper-competitive.
  3. Park Dependency: If tourism slows, Disney loses its profit engine.
  4. Debt Load: $47B owed, with repayments starting in 2026.

Competitor Comparison

  • Netflix: More streaming subs, but Disney bundles with Hulu/ESPN+.
  • Universal (Comcast): Disney’s parks are twice as profitable.
  • Warner Bros.: Disney’s movie lineup is stronger (Deadpool 3 vs. Barbie 2).

Leadership Moves & Strategy

  • Bob Iger’s Comeback: Cut 7,000 jobs, sold part of Hotstar India, and refocused on core brands (Marvel, Pixar).
  • New Investments: Expanding parks in Shanghai, Hong Kong, and Europe.

What’s Next for Disney?

  • Price Hikes: Disney+ now costs $15/month (ads-free tier).
  • Park Upgrades: New Avatar lands and cruise ships.
  • Movies: Deadpool 3, Inside Out 2, and a Snow White reboot.
  • Ads Everywhere: More commercials on Disney+/Hulu to boost revenue.

Should You Invest?

The Good: Parks are printing money, movies still dominate, and debt is manageable for now.
The Bad: Streaming losses and ESPN’s decline could drag profits for years.
The Unknown: Can Disney+ become the next Netflix, or will it stay a cash-burning side project?

Summary: Disney is a bet on Bob Iger’s turnaround skills and whether families will keep paying $300/day for park tickets. If you believe in the magic (and have patience for streaming losses), it’s a household name with upside. If not, the debt and ESPN risks might spook you.

Not financial advice, but we hope this helps you decide! 🎢

Risk Factors

  • Streaming losses of -$4B despite 10% revenue growth.
  • ESPN’s revenue dropped 8% and profit fell 34%.
  • $47B debt with repayments starting in 2026.

Why This Matters

This annual report is critical for investors as it clearly delineates Walt Disney Co's dual reality: a highly profitable Parks & Experiences segment that generated $9.1 billion in profit, effectively carrying the company, versus a struggling Direct-to-Consumer (DTC) streaming division that continues to incur significant losses, totaling -$4 billion in 2023. This divergence directly impacts Disney's overall profitability and future growth trajectory, forcing investors to weigh the stability of its traditional businesses against the high-stakes gamble on streaming.

Furthermore, the report sheds light on crucial financial health indicators and strategic challenges. The $47 billion debt load, coupled with variable interest rates and upcoming repayment schedules starting in 2026, presents a material risk, especially in a rising interest rate environment. The ongoing decline of ESPN's cable business also signals a need for a robust pivot to digital, a transition fraught with competitive pressures. Investors need to assess if Bob Iger's turnaround strategy, including cost-cutting and park expansions, can effectively navigate these headwinds and deliver sustainable long-term value.

What Usually Happens Next

Following this annual report, investors should closely monitor Disney's quarterly earnings calls and investor presentations, where management will provide more detailed guidance and updates on the strategies outlined. A primary focus will be on the Direct-to-Consumer segment's path to profitability, with CEO Bob Iger having set a target for Disney+ to become profitable by the end of fiscal 2024. Any deviation from this timeline or significant changes in subscriber growth will be critical indicators of the streaming strategy's success.

Additionally, attention will turn to the strategic future of ESPN, particularly how Disney plans to address the ongoing decline in linear TV subscribers while capitalizing on the growth of ESPN+. Investors will look for announcements regarding potential partnerships, new streaming bundles, or even a partial spin-off. Further updates on global park expansions, new attractions, and the performance of upcoming blockbuster films (like Deadpool 3 and Inside Out 2) will also be key milestones, as these segments are currently the company's primary profit drivers. The company's approach to managing its $47 billion debt load, especially as major repayments loom in 2026, will also be a recurring theme in future financial disclosures.

Financial Metrics

Revenue $88.9 billion
Net Income $3.4B
Growth Rate 7%

Learn More

10-K Annual Reports Explained

Everything you need to know about annual reports

Understanding SEC Filings & CIK

How to navigate SEC filings

Document Information

Analysis Processed

November 14, 2025 at 09:10 AM

Important Disclaimer

This AI-generated analysis is for informational purposes only and does not constitute financial or investment advice. Always consult with qualified professionals and conduct your own research before making investment decisions.