Walt Disney Co (The)
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.87%.
Did DIS Beat Earnings? Q2 2025 Results
Walt Disney delivered a notably strong fiscal second quarter, posting adjusted EPS of $1.45 against a consensus estimate of $1.21, a beat of nearly 19.80%, while revenue climbed 7.0% year over year to $23.62 billion, ahead of the $23.13 billion Wall Street had anticipated. The standout driver was a resurgent Entertainment segment, where Direct-to-Consumer swung decisively into profitability — operating income jumping to $336 million from just $47 million a year ago — as higher subscription pricing and advertising gains pushed Disney+ to 126 million subscribers and combined Disney+ and Hulu totals to 180.7 million. Experiences held its own with 9% operating income growth, supported by strong domestic park attendance and the launch of the Disney Treasure cruise ship, momentum that dovetails with the company's newly announced Abu Dhabi theme park plans. With confidence building across segments, Disney raised its full-year fiscal 2025 adjusted EPS guidance to $5.75, implying 16% growth, even as management acknowledged it continues to monitor macroeconomic uncertainty heading into the back half of the fiscal year.
- Adjusted EPS grew 20% YoY driven by Entertainment and Experiences segments
- Direct-to-Consumer operating income increased $289 million to $336 million, driven by higher subscription pricing and advertising growth
- Disney+ subscribers grew 1.4 million sequentially to 126.0 million; combined Disney+ and Hulu reached 180.7 million subscriptions
- Domestic Parks & Experiences operating income grew 13% on higher attendance, guest spending, and Disney Treasure cruise ship launch
- Content Sales/Licensing benefited from Moana 2 home entertainment performance and higher TV/VOD episodic content sales
- Domestic ESPN advertising revenue grew 29%, partly from expanded College Football Playoff format
- Consumer Products operating income grew 14%, aided by Marvel Rivals licensed game revenue
- Non-cash tax benefit of $1,016 million from resolution of a prior-year tax matter boosted GAAP results
- Lower tax payments due to California wildfire-related deferrals increased operating cash flow by $4.1 billion YoY (six months)
“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.”
Disney CEO, on the earnings call
Forward Guidance & Outlook
For fiscal Q3 2025, Disney expects a modest increase in Disney+ subscribers versus Q2. For full fiscal year 2025, the company raised guidance: adjusted EPS of $5.75 (16% growth over fiscal 2024); cash provided by operations of $17 billion (up $2 billion from prior guidance driven by tax payment deferrals); Entertainment segment double-digit operating income growth; Sports segment 18% operating income growth; Experiences segment 6% to 8% operating income growth. Disney Cruise Line pre-opening expense is expected to be approximately $200 million for the year, with approximately $40 million in Q3 and $50 million in Q4. Equity loss from the India joint venture is expected to be approximately $300 million driven by purchase accounting amortization. The company continues to monitor macroeconomic developments for potential impacts and acknowledges uncertainty regarding the operating environment for the balance of the fiscal year.
DIS YoY Financials
DIS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.