Disney’s direct-to-consumer segment, which includes Disney+ and Hulu, reported a remarkable operating income of $1.3 billion for fiscal 2025, ending September 27, 2025, a ninefold increase from the previous year. In the first quarter of fiscal 2026, which concluded on December 27, 2025, operating income surged by 72% year-over-year to $450 million. The entertainment DTC segment generated annual revenue of $21.4 billion in the latest fiscal quarter, primarily from subscriptions.
While Disney continues to lag behind Netflix, which recorded a 29.5% operating margin in 2025, it is projected that Disney’s DTC operating margin could reach 10% in fiscal 2026. If revenue increases at an annual rate of 10% from fiscal 2025 to fiscal 2030, Disney’s operating income could potentially soar to $6.3 billion—representing a 388% increase over five years.
