TLDR
- Disney stock closed at $92.17, up 0.07% ahead of earnings call
- Q2 revenue rose 7% to $23.6 billion, income before taxes surged to $3.1 billion
- EPS improved sharply to $1.81, adjusted EPS climbed 20% to $1.45
- Disney+ subscribers hit 126 million, total streaming subs reached 180.7 million
- FY 2025 adjusted EPS forecast raised to $5.75, earnings date is May 7, 2025
The Walt Disney Company (NYSE: DIS) stock inched up 0.07% to close at $92.17 on May 6, ahead of its scheduled earnings call. The entertainment giant reported a strong fiscal second quarter for 2025, with significant gains in both revenue and earnings, powered by its Entertainment and Experiences businesses.
Q2 Earnings Powered by Entertainment and Experiences
Disney reported a 7% increase in revenue for the quarter, reaching $23.6 billion compared to $22.1 billion a year ago. Income before income taxes soared to $3.1 billion from $0.7 billion. Diluted EPS rose to $1.81, a sharp rebound from a $0.01 loss per share in the prior year. Adjusted EPS grew 20% to $1.45, beating last year’s $1.21.
The Walt Disney Company, $DIS, Q2-25. Results:
🟢 +6.3% Pre-Market📊 Adj. EPS: $1.45 🟢
💰 Revenue: $23.6B 🟢
🔎 Strong performance in Entertainment and Experiences drove a 20% YoY gain in adjusted EPS, while Disney+ and Hulu subscriptions rose by 2.5M sequentially. pic.twitter.com/dIz2YUt2Nb— EarningsTime (@Earnings_Time) May 7, 2025
Segment operating income advanced 15% to $4.4 billion. The Entertainment division led the charge with a $1.3 billion operating income, up by $0.5 billion. Disney’s Direct-to-Consumer arm also impressed, growing operating income by $289 million to reach $336 million.
Streaming Growth and Sports Trade-offs
Disney+ and Hulu subscriptions grew to 180.7 million, marking a 2.5 million gain from Q1. Disney+ itself added 1.4 million subscribers, reaching 126 million.
However, not all segments delivered upside. Sports operating income fell by $91 million to $687 million, as higher programming costs—linked to extra College Football Playoff and NFL games—outweighed revenue growth. Sports revenue rose 5%, helped by a 29% jump in domestic ad revenue, but results were impacted by a write-off from exiting the Venu joint venture.
Experiences Segment Delivers Steady Gains
The Experiences division remained a solid performer. Segment operating income grew by $0.2 billion to hit $2.5 billion. Domestic Parks & Experiences rose 13% to $1.8 billion, while Consumer Products posted a 14% increase to $0.4 billion.
Disney also repurchased $1 billion in shares during the quarter and is on track to meet its $3 billion buyback goal for the year.
Raised Outlook for Fiscal 2025
For the full year, Disney now expects adjusted EPS of $5.75, representing a 16% increase over fiscal 2024. Management also lifted its cash operations guidance to $17 billion, citing better-than-expected tax deferrals.
CEO Robert Iger noted strong momentum, pointing to upcoming film releases, ESPN’s new direct-to-consumer service, and major expansion projects in the Experiences segment as growth drivers for the remainder of 2025.
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