Disney recently reported its fiscal second-quarter earnings, surpassing estimates with strong performances in both its domestic parks and streaming segments. The company raised its full-year profit forecast to $5.75 per share, a significant 16% increase from previous projections for fiscal 2024, and nearly double the prior guidance of high single-digit growth. Analysts had expected adjusted earnings per share for 2025 to be around $5.44.
In premarket trading, Disney’s stock surged as much as 8.5% before stabilizing at approximately 6%. This positive financial report comes amid the backdrop of President Trump’s changing tariff policies, which have created uncertainty for many companies this earnings season. Disney acknowledged this uncertainty but expressed confidence in monitoring macroeconomic developments.
The company’s streaming service Disney+ defied expectations by adding 1.4 million subscribers in the quarter, contrasting analysts’ projections of a 1.25 million subscriber loss. After a drop of 700,000 paid users in the previous quarter due to anticipated churn following price hikes, the streaming unit, including Hulu, reported a profit of $336 million—up from $47 million the previous year and surpassing analysts’ expectations. This marks the fourth consecutive profitable quarter for Disney’s streaming service, highlighting its importance as more consumers transition to direct-to-consumer options.
For the quarter, Disney reported revenue of $23.62 billion, exceeding expectations of $23.05 billion, with a 7% increase from the prior year. Adjusted earnings per share reached $1.45, beating the expected $1.20, and reflecting a 20% increase year-over-year.
On the theme park front, Disney experienced a significant 13% rise in operating income at its domestic parks, backed by increased guest spending and notable attendance. The successful launch of the Disney Treasure cruise ship further contributed to this rebound, contrasting with a decline in domestic operating income reported in the first quarter. Despite ongoing pressure from the broader economic environment and intensifying competition, particularly with NBCUniversal’s upcoming Epic Universe, Disney’s parks have showcased resilience and growth.
The overall results demonstrate Disney’s capacity to adapt and respond positively to challenges, positioning the company well as it navigates through a competitive market while enhancing its entertainment offerings.