Shares of The Walt Disney Company (NYSE: DIS) jumped 10% on Wednesday after the company delivered solid results for the second quarter of 2025 and raised its earnings guidance for the full year. The quarterly performance was fueled by growth across segments, streaming subscriber gains, and strength in the Experiences division. Here are a few notable points:
Better-than-expected results
Disney’s revenue and earnings for the second quarter of 2025 grew on a year-over-year basis and surpassed projections. Revenues increased 7% to $23.6 billion while adjusted earnings per share rose 20% to $1.45. Analysts had predicted earnings of $1.21 per share on revenue of $23.1 billion.
Entertainment – the multiplier effect
Disney’s strong content has always been a huge advantage. Several of the company’s popular films and series have been successfully leveraged across the business. Its successful movies go on to create franchises and generate long-term value while new and returning series that move on from linear to streaming, drive high levels of engagement on streaming platforms.
Disney is benefiting from the success of movies like Mufasa: The Lion King and Thunderbolts and it has a number of titles slated for release later this year, including Lilo & Stitch, The Fantastic Four: First Steps, and Zootopia 2. The Moana franchise continues to generate value with the first Moana movie being the most streamed film on Disney+ and Moana 2 earning $1 billion at the box office. Shows like High Potential, Daredevil: Born Again, and Paradise are also gaining strong viewership on streaming platforms.
Streaming – a core growth driver
Streaming continues to be a key growth driver for Disney. In Q2, direct-to-consumer (DTC) revenues increased 8% YoY to $6.1 billion. The company ended the second quarter with more than 180 million Disney+ and Hulu subscriptions, up 2.5 million sequentially.
The entertainment giant is working on growing its international audience by investing in local content. It is focusing on markets like the UK, Korea and Japan where it sees strong growth potential. It is also broadening its international offerings by including licensed content from partners alongside its original content.
New Experiences
In Q2, revenues in the Experiences segment grew 6% YoY to $8.9 billion despite a challenging economic environment. Disney continues to work on driving long-term segment growth through strategic investments and expansion projects. As part of its expansion, the company announced plans for a new theme park resort in Abu Dhabi.
Outlook
For fiscal year 2025, Disney expects adjusted EPS to increase 16% YoY to $5.75. The company had earlier guided for high-single-digit adjusted EPS growth for the year.
