The Walt Disney Company (DIS) reported robust fiscal second-quarter earnings, beating expectations and raising its profit outlook for the year. The company’s theme parks and streaming businesses delivered stellar performances, signaling continued growth.
🔑 Key Highlights:
- Disney (DIS) stock surged 10.54% after strong earnings results.
- Revenue hit $23.62 billion, beating analyst expectations of $23.05 billion.
- Adjusted earnings per share of $1.45 outpaced predictions of $1.20.
- Parks business saw a 13% rise in domestic operating income, driven by increased guest spending and new cruise ship launches.
- Streaming segment posted a profit of $336 million, marking the fourth consecutive profitable quarter.
- Disney raised its full-year profit forecast to $5.75 per share, up 16% from fiscal 2024.
📈 Disney’s Strong Earnings Reflect Recovery in Parks and Streaming
On May 7, 2025, Disney (DIS) reported fiscal second-quarter earnings that exceeded analyst expectations. The company’s parks division and streaming services played a significant role in the positive results, as revenue reached $23.62 billion, a 7% increase compared to the previous year. This growth comes amid continued consumer demand at Disney’s domestic parks and a surprising rebound in Disney+ subscriber numbers.
🏰 Disney Parks Business Outperforms Expectations
Disney’s domestic parks saw a 13% increase in operating income, benefiting from increased theme park attendance and a successful launch of the Disney Treasure cruise ship. This marks a stark recovery from a 5% decline in domestic operating income in the prior quarter. In addition to higher guest spending, the parks division also continues to invest in expanding its cruise line, with two new ships launching later this year.
However, international parks, particularly Shanghai Disneyland and Hong Kong Disneyland, faced challenges amid macroeconomic pressures, with a 23% drop in operating income. Despite this, Disney reported strong attendance at its parks in China, although per capita spending remained under pressure.
📺 Disney+ Surprises with Subscriber Growth and Profitability
Disney+ added 1.4 million subscribers during the quarter, surpassing analysts’ expectations of a 1.25 million subscriber loss. This growth comes despite recent price hikes and measures to curb password sharing. More impressively, the Direct-to-Consumer (DTC) segment, which includes Disney+, Hulu, and ESPN+, posted a profit of $336 million, a significant improvement from the previous year’s $47 million profit. This marks Disney’s fourth consecutive quarter of profitability in its streaming unit, a critical achievement as the company targets approximately $875 million in streaming profits for fiscal 2025.
🏗️ Disney Expands Globally with New Park in Abu Dhabi
In a move to expand its global footprint, Disney announced plans to build a new theme park and resort in Abu Dhabi, marking its first major expansion into the Middle East. The project will be developed in partnership with Miral, a state-backed tourism and real estate company. CEO Bob Iger highlighted that the resort will be “authentically Disney and distinctly Emirati,” catering to visitors from the Middle East, Africa, India, Asia, and Europe.
📊 Positive Full-Year Profit Outlook
Following the strong quarterly results, Disney raised its full-year profit forecast to $5.75 per share, representing a 16% increase over fiscal 2024. This is significantly higher than the previously forecasted high single-digit growth. The updated guidance reflects Disney’s confidence in continued growth across its parks and streaming businesses.
⚖️ Navigating Uncertainty
Despite the strong results, Disney acknowledged the uncertainty surrounding macroeconomic factors and President Trump’s shifting tariff policies. The company stated that it continues to monitor potential impacts on its business and will adjust its strategies as needed to address any challenges in the latter half of fiscal 2025.
💡 Key Takeaways: Disney’s Strong Growth Outlook
- Disney’s quarterly revenue and earnings per share exceeded expectations, driven by the success of its parks and streaming businesses.
- The company raised its full-year profit forecast to $5.75, signaling strong growth ahead.
- The announcement of a new park in Abu Dhabi marks an exciting step in Disney’s global expansion strategy.
- Disney+ continues to show strong subscriber growth and profitability, positioning the company for continued success in the direct-to-consumer space.
