Operating income/loss of the Walt Disney Company in 4th quarters 2024 and 2026, by segment
Walt Disney Company's Q4 FY2024 operating income story is one of margin contrast across its three segments. Experiences leads with $1.661 billion at a 20.2% margin -- the highest absolute OI and one of Disney's highest margin businesses despite being the second-largest revenue segment. Entertainment delivered $1.074 billion at 10.8% -- a significant improvement from the losses of FY2022 when Disney DTC alone lost approximately $4 billion for the full year. Sports (ESPN) contributed $0.845 billion at a solid 20.0% margin. The quarterly revenue context is in our Disney quarterly revenue by segment analysis.
The Q4 FY2024 operating income profile reflects Disney's completed restructuring under CEO Bob Iger (who returned in November 2022). Iger's key moves -- DTC streaming price increases, password-sharing crackdowns, reducing content spend, and cutting 7,000 jobs -- contributed to the dramatic swing from ~-$4 billion DTC operating loss in FY2022 to the $3.580 billion total segment OI in Q4 FY2024 alone. By Q4 FY2026, total segment OI is projected to reach $4.800 billion (+34.1%), driven primarily by Entertainment's margin expansion as DTC streaming approaches Netflix-like profitability at scale. The full DTC financial context in our DTC segment financial analysis.
Experiences ($1.661B OI, 20.2% margin) generates more operating income than Entertainment ($1.074B, 10.8%) despite $1.7 billion less in revenue. This reflects fundamentally different business economics: Parks and Resorts have pricing power, low marginal cost per additional visitor, and Consumer Products licensing generates nearly pure profit. Entertainment's content costs (~$24B annually for DTC + theatrical) compress its margin significantly. Sports (ESPN) achieves a strong 20.0% margin on $4.219B revenue -- ESPN's per-subscriber affiliate fees from cable operators are high-margin, predictable revenue. Disney+ ARPU data feeding Entertainment in our Disney Plus ARPU worldwide quarterly analysis.
Walt Disney operating income Q4 FY2024 -- Experiences $1.66B, Entertainment $1.07B, Sports $0.85B
The bar chart below shows Q4 FY2024 operating income by Disney segment -- all confirmed from Disney SEC 10-K FY2024. Experiences leads at $1.661 billion, followed by Entertainment at $1.074 billion, and Sports at $0.845 billion. Disney+ subscription pricing data in our Disney streaming subscription prices analysis.
Disney operating income by segment -- Q4 FY2024 confirmed vs Q4 FY2026 estimate
The grouped bar chart compares Q4 FY2024 confirmed and Q4 FY2026 estimated operating income for each segment. Entertainment shows the largest absolute and percentage growth -- from $1.074B to ~$1.800B (+67.6%) -- as DTC streaming profitability improves significantly. The ad-supported subscriber context in our ad-supported VOD worldwide analysis.
Disney operating margin Q4 FY2024 vs Q4 FY2026 -- Entertainment from 10.8% to 16.1%
The horizontal bar chart compares operating margins (operating income as % of segment revenue) for Q4 FY2024 (confirmed) and Q4 FY2026 (estimated). Entertainment's margin improvement (+5.3 points) is the most significant shift -- reflecting DTC streaming approaching a mature margin profile as subscriber scale grows. The streaming subscriber count context in our global SVOD subscriber count by platform analysis.
Disney quarterly operating income trend Q1 FY2024 to Q4 FY2026 -- by segment
The line chart below tracks Disney's quarterly total segment operating income from Q1 FY2024 through Q4 FY2026. Disney's Q3 (April-June) typically shows the highest OI due to peak summer Parks attendance. Entertainment OI growth is the key positive trend, driven by DTC streaming scaling. Content spend context for these margins in our media content spending analysis.
Disney segment operating income growth Q4 FY2024 to Q4 FY2026 -- Entertainment +67.6% leads
The chart below shows the projected percentage operating income growth from Q4 FY2024 to Q4 FY2026 by segment. Entertainment is projected to grow OI fastest at +67.6% -- the largest relative improvement -- driven by DTC streaming margin expansion. This compares to Experiences at +26.4% and Sports at +6.5%. Disney+ subscriber count data in our Disney Plus subscriber count worldwide analysis.
Disney operating income by segment -- Entertainment, Sports, Experiences -- drivers and margin analysis
- Entertainment OI ($1.074B Q4 FY2024 -- 10.8% margin): The Entertainment segment's Q4 FY2024 OI reflects a complete reversal from FY2022 when Disney DTC alone lost approximately $4 billion for the full fiscal year. The improvement came from three sources: DTC streaming turned profitable -- Disney+ and Hulu subscriber scale now spreads content costs across a large enough base to generate operating income. Disney+ had 122.7 million subscribers (Q4 FY2024), now 131.6M (Q4 FY2025). Price increases (Disney+ Basic from $7.99 launch price, Premium raised to $15.99 in November 2024) significantly improved ARPU. Linear Networks operating income is declining as cord-cutting reduces cable subscribers, but it remains profitable due to high-value affiliate fee contracts still in place. Content Sales/Licensing OI varies quarter to quarter based on theatrical release timing and licensing deal structure. Disney's HVOD subscriber base in our HVOD services revenue worldwide analysis.
- Sports OI ($0.845B Q4 FY2024 -- 20.0% margin): ESPN's 20.0% operating margin in Q4 FY2024 reflects its unique position as a near-monopoly in U.S. sports broadcasting. Cable operators pay ESPN approximately $9-10 per subscriber per month in affiliate fees -- the highest of any cable channel by a significant margin. This creates a high-margin, recurring revenue stream. However, ESPN's costs are also high: NFL Monday Night Football rights (~$1.8B/year), NBA rights (ending after FY2025, being replaced by a new ~$2.6B/year deal), college sports (SEC, ACC, Big 12 networks), and ongoing programming costs. ESPN+ streaming ($10.99/month) is increasingly profitable as the subscriber base has grown to ~24M+. The Sports segment margin is projected to slightly decrease from 20.0% to 18.6% by Q4 FY2026 as the new NBA rights costs add significant expense versus the prior deal. Disney's streaming ARPU context in our Disney Plus ARPU worldwide analysis.
- Experiences OI ($1.661B Q4 FY2024 -- 20.2% margin): Disney Experiences' 20.2% operating margin and $1.661 billion in OI confirm its position as Disney's most profitable business in absolute dollar terms. Parks revenue is driven by per-capita spending -- the average visitor to Walt Disney World now spends significantly more per visit than they did pre-2019, due to admission price increases, Lightning Lane/Genie+ upcharges ($15-$25 per ride per person), resort hotel rate increases, and food/merchandise inflation. Consumer Products licensing -- Disney characters on merchandise worldwide -- generates extremely high margins with minimal incremental cost per deal. The Experiences margin is projected to continue improving, from 20.2% (Q4 FY2024) to ~23.1% (Q4 FY2026E), as per-capita spending discipline continues and new cruise ships (Disney Treasure, Disney Adventure) add high-margin capacity. Full Disney subscriber and DTC context in our Disney Plus subscriber count worldwide analysis.
Disney operating income by segment -- complete data table Q4 FY2024 and Q4 FY2026
| Segment | OI Q4 FY2024 ($B) | Margin Q4 FY2024 | OI Q4 FY2026E ($B) | Margin Q4 FY2026E | OI Growth | Margin Change | Source FY2024 |
|---|---|---|---|---|---|---|---|
| Experiences | $1.661B | 20.2% | ~$2.100B | ~23.1% | +26.4% | +2.9 pts | Disney 10-K FY2024 |
| Entertainment | $1.074B | 10.8% | ~$1.800B | ~16.1% | +67.6% | +5.3 pts | Disney 10-K FY2024 |
| Sports (ESPN) | $0.845B | 20.0% | ~$0.900B | ~18.6% | +6.5% | -1.4 pts | Disney 10-K FY2024 |
| Total Segments | $3.580B | 16.0% | ~$4.800B | ~19.1% | +34.1% | +3.1 pts | Disney 10-K FY2024 |
Disney operating income by segment -- key statistics and facts Q4 2024 and Q4 2026
Frequently Asked Questions -- Disney operating income by segment Q4 2024 and Q4 2026
Disney Q4 FY2024 segment operating income (confirmed, Disney SEC 10-K FY2024): Experiences $1.661 billion (20.2% margin), Entertainment $1.074 billion (10.8% margin), Sports $0.845 billion (20.0% margin). Total segment OI: $3.580 billion (16.0% combined margin). Q4 FY2024 = Disney fiscal quarter ending September 28, 2024. Note: segment OI excludes unallocated corporate expenses of approximately -$0.4-0.5B per quarter, so total company operating income is lower. Source: Disney SEC 10-K FY2024.
Experiences leads with $1.661 billion -- the highest absolute operating income of any Disney segment in Q4 FY2024. This is notable because Entertainment has higher revenue ($9.966B vs Experiences' $8.238B). Experiences achieves this through its superior margin structure -- Parks and Resorts pricing power, per-capita spending upcharges, Disney Cruise Line premium rates, and Consumer Products licensing (nearly pure profit). Experiences is Disney's most valuable business per dollar of revenue. Source: Disney SEC 10-K FY2024.
Disney's Entertainment OI improvement from approximately -$4B DTC loss in FY2022 to +$1.074B in Q4 FY2024 reflects CEO Bob Iger's restructuring strategy (implemented from November 2022): (1) Price increases -- Disney+ Premium raised from $10.99 to $13.99 (October 2023) and $15.99 (November 2024), significantly improving ARPU. (2) Password sharing enforcement -- converting millions of non-paying viewers to paid subscribers from 2023. (3) Content cost discipline -- reducing DTC content spend from peak FY2023 levels, guided by the $24B FY2026 target. (4) Ad-tier revenue growth -- Disney+ Basic (ad-supported) advertising revenue scaling. (5) Linear Networks remaining profitable despite cord-cutting. Source: Disney SEC 10-K FY2022-FY2024, Disney earnings calls.
Disney Q4 FY2026 operating income estimates: Experiences ~$2.100B (23.1% margin, +26.4%), Entertainment ~$1.800B (16.1% margin, +67.6%), Sports ~$0.900B (18.6% margin, +6.5%). Total segment OI: ~$4.800B (19.1% combined margin, +34.1%). Entertainment's +67.6% OI growth is the standout -- driven by DTC streaming continuing to scale profitably. Sports margin slightly compresses due to new NBA rights costs. Source: BusinessStats Research FY2026 estimates based on Disney FY2025 10-K trajectory and CEO guidance.
Sports (ESPN) achieved a 20.0% operating margin in Q4 FY2024 versus Entertainment's 10.8% for two structural reasons: (1) ESPN affiliate fee structure -- cable operators pay ESPN approximately $9-10 per subscriber per month regardless of whether subscribers watch ESPN, creating highly predictable, high-margin recurring revenue. This affiliate fee revenue has few variable costs. (2) Advertising premium -- live sports commands the highest advertising CPMs in television, further boosting margin. Entertainment's lower margin reflects high content production costs (~$20B+ annually for streaming and theatrical) plus the transition cost of building DTC streaming from scratch while legacy linear TV declines. Source: Disney SEC 10-K FY2024.
Disney's total segment OI of $3.580B in Q4 FY2024 compares to Netflix's full-year FY2025 operating income of $13.33B (confirmed). On a quarterly basis, Netflix generated approximately $3.3B in OI per quarter in FY2025 -- comparable to Disney's Q4 FY2024 total segment OI. However, the comparison is not direct: Disney's segment OI is pre-corporate costs, and Netflix is a pure-play streaming service while Disney also includes Parks and Sports. Netflix's 29.5% operating margin (FY2025 confirmed) significantly exceeds Disney Entertainment's 10.8% margin -- reflecting the gap between a mature pure-play streamer and Disney's hybrid model still managing a linear TV legacy.
Disney's new NBA rights deal (beginning FY2026, estimated at ~$2.6 billion per year for ESPN's portion) significantly increases the Sports segment's rights costs compared to the prior ~$1.0 billion annual NBA deal. This is the primary reason Sports segment operating margin is projected to decrease from 20.0% (Q4 FY2024) to approximately 18.6% (Q4 FY2026E) -- the only Disney segment with margin compression. However, the NBA rights also drive higher ESPN affiliate fees (cable operators pay more for richer sports content), new ESPN+ subscribers, and advertising revenue from NBA games, partially offsetting the cost increase. Disney CEO Iger confirmed the higher DTC content spend for FY2026 on November 13, 2025. Source: Disney NBA rights announcement 2024, Disney SEC 10-K FY2025.
Disney's total segment operating income ($3.580B in Q4 FY2024) differs from total company operating income due to unallocated corporate expenses -- shared services, corporate overhead, Disney Technology Solutions, legal, finance, and HR costs not attributed to individual segments. These unallocated costs are approximately -$0.4 to -$0.5 billion per quarter, reducing total company operating income to approximately $3.1-3.2B in Q4 FY2024. Below operating income, interest expense, income taxes, and minority interest further reduce net income to approximately $0.4B in Q4 FY2024. Segment OI is the metric Disney management uses to evaluate each business unit's standalone performance. Source: Disney SEC 10-K FY2024.
