The Walt Disney Company reported robust financial results for the second quarter of fiscal year 2025, showcasing significant growth across its core segments. Revenues rose 7% year-over-year to $23.6 billion, up from $22.1 billion in the same quarter of fiscal 2024. Net income surged to $3.28 billion, a substantial increase from a $20 million loss in the prior year, while adjusted earnings per share (EPS) climbed 20% to $1.45, surpassing analyst expectations of $1.20.
CEO Bob Iger expressed optimism about the company’s trajectory, stating, “Our outstanding performance this quarter—with adjusted EPS up 20% from the prior year driven by our Entertainment and Experiences businesses—underscores our continued success building for growth and executing across our strategic priorities.” He highlighted upcoming initiatives, including the launch of ESPN’s new direct-to-consumer offering and expansion projects within the Experiences segment.
The Entertainment segment experienced a 9% revenue increase, totaling $10.7 billion. Operating income for this division reached $1.3 billion, marking a $500 million rise compared to the previous year. The Direct-to-Consumer (DTC) division, encompassing Disney+ and Hulu, reported an operating income of $336 million, a significant improvement from the $47 million recorded a year earlier. Disney+ added 1.4 million subscribers, bringing its total to 126 million, while combined subscriptions for Disney+ and Hulu reached 180.7 million, reflecting a net addition of 2.5 million subscribers.
In the Sports segment, revenue increased by 5% to $4.5 billion, driven by a 7% growth in domestic ESPN revenue. However, operating income declined by $91 million to $687 million, primarily due to higher programming and production costs associated with additional College Football Playoff and NFL games. The segment also faced a write-off related to the exit from the Venu joint venture.
The Experiences segment, which includes theme parks and consumer products, reported a 6% revenue increase to $8.9 billion. Operating income rose by $200 million to $2.5 billion. Domestic Parks & Experiences saw a 13% growth in operating income, reaching $1.8 billion, while Consumer Products experienced a 14% increase to $400 million.
In a strategic move to enhance its global footprint, Disney announced plans to develop its seventh theme park resort in Abu Dhabi, in partnership with Miral. This venture aims to blend Disney’s storytelling with Emirati culture, offering immersive experiences through contemporary architecture and advanced technology.
Looking ahead, Disney has raised its full-year adjusted EPS forecast to $5.75, representing a 16% increase over fiscal 2024. The company also anticipates cash provided by operations to reach $17 billion, a $2 billion uptick from prior guidance, partly due to deferred tax payments.
Despite the positive financial outlook, Disney remains vigilant about potential macroeconomic challenges that could impact its operations in the latter half of the fiscal year. Nevertheless, the company’s strong performance in Q2 2025 reflects its resilience and strategic focus across its diverse business segments.
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