Disney earnings beat expectations as streaming, parks, and sports drive growth in Q2

Disney delivers a surprise streaming rebound in Q2

Walt Disney Co. (NYSE: DIS) beat Wall Street expectations in its fiscal second-quarter earnings report, thanks in part to an unexpected increase in Disney+ subscribers. The entertainment giant reported a 1.4 million subscriber gain for its flagship streaming platform, surpassing expectations of 123.35 million and reaching a global base of 126 million.

The direct-to-consumer business, which includes Disney+, saw an 8 percent year-over-year revenue increase to $6.12 billion. Higher pricing and rising subscriptions powered this growth.


Despite previously warning of a potential subscriber drop, Disney now expects a modest increase in Disney+ users for the current quarter. The company has high confidence in its streaming strategy amid heightened competition from rivals like Netflix and Amazon Prime Video.

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Theme parks and sports fuel revenue growth

Disney’s experiences business—encompassing parks, cruises, and consumer products—also contributed significantly to its Q2 results. Revenue for this segment rose 6 percent to $8.89 billion. Domestic park revenue increased 9 per cent to $6.5 billion, driven by higher guest spending and robust demand following the launch of the Disney Treasure cruise ship. While international parks saw a 5 percent dip to $1.44 billion, the company pointed to continued strength in US tourism and cruise volume.

The sports segment, anchored by ESPN, posted a 5 per cent increase in revenue to $4.53 billion, boosted by elevated ad revenues. Disney aired three extra College Football Playoff games and one additional NFL game during the quarter, which led to improved viewership and advertising rates. Looking ahead, Disney raised its full-year operating income growth forecast for its sports business to 18 per cent, up from 13 percent.

Content, licensing, and EPS guidance on the rise

Revenue for Disney’s entertainment division grew 9 per cent to $10.68 billion, supported by strong licensing from winter box office hits like Moana 2 and Mufasa: The Lion King. Despite underperformers like Snow White and Captain America: Brave New World, the division saw meaningful gains.

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Disney reported adjusted earnings per share of $1.45 versus the expected $1.20, and raised its fiscal 2025 EPS guidance to $5.75—a 16 per cent year-over-year increase. Net income surged to $3.28 billion from a loss a year earlier.