Key Takeaways
- The Walt Disney Company (DIS) surpassed Q3 2025 adjusted EPS estimates, reporting $1.61 against expectations of $1.46-$1.47, though revenue slightly missed forecasts at $23.65 billion.
- Microsoft (MSFT) is reportedly considering a mandate for employees to work from the office three days a week, signaling a tightening of return-to-office policies across the tech sector.
- Novo Nordisk's outgoing CEO indicated that the company will likely face layoffs, highlighting potential workforce adjustments in the pharmaceutical industry.
- Emerson Electric (EMR) and Cencora (COR) also reported their Q3 earnings, with both companies beating adjusted EPS estimates and providing updated full-year outlooks.
The Walt Disney Company (DIS) announced its fiscal third-quarter 2025 earnings, reporting adjusted earnings per share (EPS) of $1.61, which significantly exceeded analyst estimates of $1.46 to $1.47. While the company's revenue of $23.65 billion for the quarter slightly fell short of the estimated $23.68 billion to $23.73 billion, overall financial performance was strong. Disney's Experiences segment, including its domestic parks, saw operating income rise to $2.5 billion, a 22% increase for domestic parks year-over-year.
Looking ahead, Disney anticipates a modest increase in Disney+ subscribers quarter-over-quarter for Q4, with total Disney+ and Hulu subscriptions expected to increase by over 10 million from Q3. The company also raised its full-year adjusted EPS outlook to $5.85, up from a previous forecast of $5.75, and above analyst expectations of $5.77 to $5.78. In other significant news, Disney's ESPN and the NFL have reached new agreements to extend NFL Draft rights. Additionally, the Wall Street Journal reported that Disney is acquiring WWE rights for $1.6 billion.
In the broader technology sector, Microsoft (MSFT) is reportedly considering a mandate for its employees to work from the office three days a week. This potential shift comes as major tech companies continue to refine their return-to-office (RTO) policies, with some, like Amazon and Dell, moving towards a five-day in-office requirement. An official announcement from Microsoft could come as early as September, with the new policy potentially taking effect at its Redmond headquarters in January.
Meanwhile, Novo Nordisk, the pharmaceutical giant known for its Wegovy and Ozempic drugs, faces potential workforce reductions. The outgoing CEO stated that the company will probably not be able to avoid layoffs, although no final decision has been made. This announcement follows a recent profit warning and a significant drop in the company's stock value, partly due to increasing competition from compounded versions of its GLP-1 drugs.
Further corporate earnings reports saw Emerson Electric (EMR) post Q3 2025 adjusted EPS of $1.52, slightly above the $1.51 estimate. However, net sales of $4.55 billion missed the $4.6 billion consensus. Despite the revenue miss, Emerson raised its full-year adjusted EPS guidance to $6.00, from a previous range of $5.90 to $6.05, aligning with or slightly exceeding the $5.99 estimate. The company projects Q4 adjusted EPS to be between $1.58 and $1.62.
Cencora (COR) also delivered strong Q3 2025 results, with adjusted EPS reaching $4.00, surpassing the $3.83 estimate. The pharmaceutical solutions organization reported revenue of $80.7 billion, beating the expected $80.31 billion. Cencora subsequently raised its full-year adjusted EPS guidance to a range of $15.85 to $16.00, up from its previous forecast of $15.70 to $15.95.
In other global business news, the Financial Times reported a wave of UK directors quitting the country, with the UAE emerging as a top destination. This trend is observed following recent changes to UK tax policies. Additionally, the rally in Europe's defense stocks has hit the brakes, as investor hopes fade due to budget boom meeting delivery delays and slow contract flow.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.