Disney Surprises Wall Street with Strong Q2 Earnings and Disney+ Subscriber Growth

Disney has reported strong second-quarter earnings for fiscal year 2025, surprising Wall Street with a rise in Disney+ subscribers and better-than-expected financial performance.

📈 Key Highlights:

• Earnings per share (EPS): $1.45 adjusted (vs. $1.20 expected)
• Total Revenue: $23.62 billion (vs. $23.14 billion expected)
• Disney+ Subscribers: Gained 1.4 million, reaching 126 million worldwide
• Net Income: $3.28 billion (up from a loss of $20 million last year)

📊 Streaming Growth Drives Results

Despite earlier forecasts predicting a drop in subscribers, Disney+ saw an unexpected boost, adding 1.4 million new subscribers globally. Analysts had only expected around 123 million. This growth helped push direct-to-consumer revenue up 8% year-over-year to $6.12 billion, thanks to higher subscription prices and user numbers.

Disney now expects continued growth in Disney+ subscriptions in the next quarter.

💼 Entertainment Segment: Strong Film and Streaming Support

Revenue from Disney’s entertainment division—which includes streaming, TV channels, and films—rose 9% to $10.68 billion. While movies like “Snow White” and “Captain America: Brave New World” didn’t perform as expected, the company saw strong box office sales from “Mufasa: The Lion King” and “Moana 2”.

However, linear TV revenue fell 13% to $2.42 billion, continuing to impact overall media earnings.

🏈 Sports Segment (ESPN) Shows Solid Growth

The sports segment, led by ESPN, grew 5% in revenue to $4.53 billion. This was driven by higher ad revenues, more College Football Playoff games, and an extra NFL game, boosting both viewership and ad rates.

For the full year, Disney now expects sports operating income to grow 18%, an increase from its earlier forecast of 13%.

🏰 Parks and Experiences Keep Growing

Disney’s experiences division—including theme parks, cruises, and merchandise—grew 6% to $8.89 billion in revenue.

• Domestic parks saw a 9% rise to $6.5 billion, due to increased visitor spending.
• International parks dipped by 5%, with revenue at $1.44 billion.
• Cruises performed well following the launch of the Disney Treasure.
• Consumer products revenue rose 4% to $949 million, thanks to strong video game licensing from “Marvel Rivals.”

🔮 Outlook for Fiscal 2025

Disney raised its full-year forecast, now expecting an adjusted EPS of $5.75, representing a 16% increase from 2024. This is up from the company’s earlier guidance of single-digit growth.

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✅ Conclusion

Disney has shown strong recovery and momentum in streaming, sports, and theme parks. With growing subscriber numbers, increased revenue across divisions, and an upgraded financial outlook, the company is on track for a robust fiscal 2025.