Squawk Pod – Disney Earnings & Rising Health Costs
November 13, 2025 | CNBC

Episode Overview

In this episode, the Squawk Box team (@Joe Kernen, @Becky Quick, @Andrew Ross Sorkin) unwinds a news-packed morning: the historic end to the longest-ever U.S. government shutdown; a deep-dive with Disney CFO Hugh Johnston on Disney’s quarterly earnings, the strength of the American consumer, and the company's approach to streaming, parks, and AI; and a candid discussion with Oscar Health CEO Mark Bertolini about skyrocketing healthcare costs, expiring ACA subsidies, and bigger reforms potentially needed for the U.S. system.

Main Themes and Focus

• Government Shutdown Ends: After 43 days, the federal government reopens in record-breaking fashion, but unresolved issues and delayed data releases raise questions about what’s next.
• Disney Earnings: CFO Hugh Johnston breaks down wins and challenges in Disney’s latest quarter, with extra scrutiny on streaming, parks, and the YouTube TV blackout.
• The Health Insurance Debate: Mark Bertolini, Oscar Health CEO and former Aetna Chair, offers rarely-heard insights and bold ideas around the future of the ACA and consumer-centered health system reform.

Key Discussions & Insights

1. Government Shutdown Fallout

[01:05] - [06:49], [17:07]-[18:35]

• Shutdown Ended After 43 Days

  • Emily Wilkins: Outlines how the government shutdown ended, with most House Republicans and a handful of Democrats voting to reopen (05:12–05:31).
  • Immediate impacts: Furloughed workers returning, with back pay possible within days.
  • “For some workers… paid maybe by Friday, some might not be paid until early next week.” — Emily Wilkins (04:15)

• Lingering Effects

  • Air traffic controller shortages led to flight caps; normalization projected by Thanksgiving (07:02–07:57).
  • “It’s not like you flip a switch and everything goes back to normal.” — Andrew Ross Sorkin (07:57)
  • Delays in government statistical data (e.g., CPI figures) likely for October due to data collection interruptions (02:50–03:25).
  • House leaves town again after the vote. “They weren’t in session for more than 50 days.” — Andrew Ross Sorkin (01:18, 05:54, 06:01)

2. Disney Earnings & Strategy: Interview with CFO Hugh Johnston (18:35–30:45)

Key Financial Results

• Earnings
  • Q4 EPS: $1.11/share (6c above estimates)
  • Revenue: $22.5B (slightly below forecasts)
  • “For the year we delivered 19% EPS growth, which… in the media and entertainment space… is very, very good.” — Hugh Johnston (19:13)
  • Commitment: Double-digit EPS growth guidance for next year, 50% dividend increase, share repurchases doubled to $7B (20:22).

Deep Dive: Disney’s Businesses

• Streaming (DTC/ESPN)

  • 12.5M subscriber additions, 40% growth in operating income (19:54)
  • “80% of those new retail subs on ESPN are actually bundled subs, which… should contribute to engagement, should contribute to retention...” — Hugh Johnston (21:08)
  • The Charter deal and the strategic importance of international growth.

• Parks and Experiences

  • Bookings for Q1 up 3%, per capita spending at Walt Disney World up 5%, cruise capacity selling out quickly (22:10–22:49).
  • “When it comes to something as significant as a Disney experience, you don’t want to cheap out on that… you want to go all in.” — Hugh Johnston (22:10)

• Ecosystem Advantage

  • “What I refer to as an earnings compounder… I think eventually investors are going to get conviction around that as well.” — Hugh Johnston (19:09)
  • “This whole idea of splitting up assets… that’s what you do when you don’t have a great business…” — Hugh Johnston (24:31)

Current Challenges

• Stock Undervaluation

  • Despite operational momentum, Disney’s stock lags competitors: “I believe it’s underpriced. I really do.” — Hugh Johnston (24:10)

• Digital Blackouts & The YouTube TV Fight

  • Ongoing disputes led to Disney content being blacked out for YouTube TV users.
  • “We’re in the middle of negotiations right now… we’re ready to go as long as they want to.” — Hugh Johnston (25:36)
  • Discussion on platform leverage and legacy TV’s changing power relative to digital platforms.

• Technology & AI

  • Disney is rapidly deploying AI for DTC recommendations, parks guest management, and production tools.
  • “Walt Disney… was a technologist... we’ve continued that… it’s going to drive the profit… over time.” — Hugh Johnston (28:01)

• Industry Consolidation

  • Disney sees itself as positioned differently due to previous strategic acquisitions (Pixar, Lucasfilm, Fox).
  • “We don’t really need to participate in these things the way some [competitors] perhaps [do].” — Hugh Johnston (29:07)

3. Health Costs & ACA Reform: Mark Bertolini, CEO of Oscar Health (32:28–48:54)

ACA’s Present & Future

• “50% of American small businesses use the Affordable Care Act. Small businesses are 50% of our GDP… 27% of farmers use the Affordable Care Act.” — Mark Bertolini (33:28)
• “75% of the people in the ACA today are from red states. 100 million Americans don’t have access to employer sponsored health insurance.” — Mark Bertolini (33:50)
• Enhanced ACA subsidies are sunsetting, with premiums projected to rise sharply — e.g., for many farmers, monthly premiums could rise from $75 to $300 (33:40).

Market-Based Reform Proposals

• Bertolini challenges the prevailing narrative, pushing for qualified accounts—individualized savings accounts (akin to HSAs) funded by employers, government, and individuals (35:57–37:32).
  • “Every time consumers get control of what they purchase, they have an effect on the underlying costs…” — Mark Bertolini (36:51)
  • “All we have to do is evolve [the ACA]. I don’t care what you call it.” — Mark Bertolini (39:24)
• Joe Kernen: “Obamacare is a sacred cow. You’re never getting rid of it at this point.” (39:19)
  • Bertolini: “Nobody’s actually put a real plan on the table.” (39:37)

Roadblocks and Realities

• Margins and Systemic Inefficiencies: Where does the “give” come from in lowering costs through competition? Bertolini argues a big chunk is inefficiency, not just profit: “It’s actually inefficiency, gross inefficiency in the system…” (40:59)
• Universal Health Care Debate: Bertolini’s approach—consumer choice, pooled risk, regulated minimum coverage—could bridge partisan divides:
  • “Wouldn’t it be great if we came to a single… payer market, either through consumers aggregating their accounts… or the government doing it? …this issue is not an issue between Democrats and Republicans anymore.” — Mark Bertolini (45:40)

Political Realities

• Major stakeholders would need to give up something, and “everybody’s going to have an axe to grind. Everybody’s going to hurt.” (45:59)
• Joe Kernen notes the resistance from entrenched interests and political camps aiming for single-payer, not “free market” single payer. (45:25–45:37)

Notable Policy Quotes

• “We haven’t tried this yet. We’ve tried everything else.” — Mark Bertolini (43:39)
• “We believe we can save up to 26% on the total cost of an employer group if we do it this way.” (44:20)

Notable Quotes & Memorable Moments

• On Streaming’s Power: “80% of those new retail subs on ESPN are actually bundled subs…” — Hugh Johnston (21:08)
• On the ACA’s Real Users: “75% of the people in the ACA today are from red states.” — Mark Bertolini (33:50)
• On Healthcare System Waste: “It’s actually inefficiency, gross inefficiency in the system.” — Mark Bertolini (40:59)
• On Stock Market Records: “Yeah, the Dow closing at a record level once again. Yesterday, it closed above 48,000 for the first time ever.” — Becky Quick (02:50)
• On Business Synergy: “This whole idea of splitting up assets… that’s what you do when you don’t have a great business…” — Hugh Johnston (24:31)

Timestamps for Key Segments

• [01:05–06:49, 17:07–18:35]: Shutdown ends, effects on data and air travel, Capitol Hill developments
• [18:35–30:45]: Disney CFO Hugh Johnston Full Interview (results, streaming, parks, YouTube TV, AI, industry consolidation)
• [32:28–48:54]: Mark Bertolini, Oscar Health: Health cost trends, ACA, subsidies, healthcare reform, political and practical challenges

Tone & Style

The episode is lively, fast-paced, and loaded with slightly skeptical, bantering energy—especially when challenging conventional wisdom on health and media. The interviews are candid and substantive, with both Johnston and Bertolini addressing tough questions directly and in plain language.

For Listeners Who Missed It

This Squawk Pod episode captures a consequential economic moment (the end of the historic government shutdown), gives investors and business-watchers a deep, actionable read on Disney’s financials and strategy, and presents a provocative, practical discussion on the future of American healthcare—one that isn’t often heard on cable news or even in major business media.

Whether you tune in for markets, media, or policy, this episode is full of details, debate, and takeaways you’ll want to know.