Disney Reports Strong Q2 Results
Disney has reported its second-quarter financial results, and they’ve exceeded expectations. The company posted better-than-expected earnings and revenue, driven by a boost in Disney+ subscribers and strong performance across all its major business areas.
Disney+ Subscriber Growth Surpasses Estimates
One of the biggest surprises came from Disney+, which added 1.4 million new subscribers, despite earlier expectations of a drop. This brings the total number of global users to 126 million, beating Wall Street’s forecast of 123.35 million. Disney expects this growth trend to continue modestly in the next quarter.
Revenue and Earnings Beat Expectations
For the quarter ending March 29, Disney reported:
- Earnings per share (EPS): $1.45 (adjusted) vs. $1.20 expected
- Revenue: $23.62 billion vs. $23.14 billion expected
This performance has prompted Disney to raise its full-year profit forecast. The company now expects its adjusted EPS for 2025 to be $5.75, a 16% increase over last year.
Turnaround in Net Income
Disney’s net income rose sharply to $3.28 billion, or $1.81 per share, from a loss of $20 million (or 1 cent per share) in the same period last year. After adjusting for one-time expenses, earnings were $1.45 per share.
Growth Across All Business Divisions
Entertainment Segment
Revenue from the entertainment segment (which includes TV networks, streaming, and films) went up 9% to $10.68 billion. While films like “Snow White” and “Captain America: Brave New World” underperformed, hits like “Mufasa: The Lion King” and “Moana 2” helped increase content sales and licensing revenue.
However, linear TV networks continued to struggle, with revenue dropping 13% to $2.42 billion.
Sports Segment (ESPN)
The sports division, led by ESPN, grew 5% to $4.53 billion, thanks to higher advertising revenue. This was supported by airing more College Football Playoff and NFL games, which attracted more viewers and boosted ad rates. Disney now expects sports operating income to grow 18% in fiscal 2025, up from an earlier 13% forecast.
Experiences Segment (Parks, Cruises, Products)
Revenue from Disney’s experiences business (including theme parks, cruise lines, and consumer products) climbed 6% to $8.89 billion.
- U.S. theme parks saw a 9% jump, earning $6.5 billion
- International parks fell 5% to $1.44 billion
- Cruise ship revenue increased due to the launch of Disney Treasure
- Consumer products revenue rose 4% to $949 million, helped by strong demand for the video game “Marvel Rivals”
Conclusion: A Strong Comeback for Disney
With better-than-expected results in streaming, entertainment, sports, and theme parks, Disney has delivered a powerful financial performance this quarter. The company’s updated guidance and steady growth in key segments suggest positive momentum heading into the rest of 2025.
