Last Updated on May 7, 2025
Entertainment Strength, Streaming Gains, and Fiscal 2025 Upgrades Push Disney Forward
TL;DR
- DIS stock closed at $92.17, up 0.07% ahead of its Q2 earnings release
- Revenue climbed 7% YoY to $23.6 billion in Q2 2025
- EPS hit $1.81, with adjusted EPS up 20% YoY to $1.45
- Streaming subs reached 180.7M, with Disney+ at 126M
- FY 2025 adjusted EPS guidance raised to $5.75
Q2 2025 Earnings Overview
The Walt Disney Company (NYSE: DIS) delivered strong second-quarter results for fiscal 2025, reporting 7% revenue growth and a 20% jump in adjusted earnings per share (EPS). Revenue rose to $23.6 billion, up from $22.1 billion in Q2 2024, while income before taxes surged from $0.7 billion to $3.1 billion.
Net diluted EPS rose to $1.81, a sharp improvement from the $0.01 loss per share in the prior year. Adjusted EPS came in at $1.45, beating last year’s $1.21 and reflecting solid gains across the company’s core business lines.
Segment Growth: Entertainment, Experiences Lead
Disney’s segment operating income rose 15% to $4.4 billion. The Entertainment division led the charge, posting $1.3 billion in operating income — a $500 million increase year over year. Meanwhile, the Direct-to-Consumer (DTC) segment reported a $336 million operating profit, thanks to a $289 million boost driven by streaming efficiency and subscriber gains.
The Experiences division also performed well:
- Operating income rose $200 million, reaching $2.5 billion
- Domestic Parks & Experiences grew 13% to $1.8 billion
- Consumer Products advanced 14%, totaling $400 million
Streaming Growth With Sports Drag
Disney’s streaming portfolio added 2.5 million net subscribers, bringing total DTC subscribers to 180.7 million. Disney+ alone gained 1.4 million, reaching 126 million subs globally.
However, the Sports segment saw a decline, with operating income falling by $91 million to $687 million. This was primarily due to higher programming costs from additional NFL and College Football Playoff games, partially offset by a 29% increase in domestic ad revenue. A write-off tied to Disney’s exit from the Venu joint venture also weighed on this segment.
Share Buybacks and Financial Outlook
Disney repurchased $1 billion in shares during the quarter and reaffirmed its goal to hit $3 billion in buybacks by year-end. The company also raised its full-year adjusted EPS guidance to $5.75, up 16% from FY 2024.
Cash operations guidance was upgraded to $17 billion, reflecting favorable tax treatment and improved operating margins across divisions.
Final Thoughts
Disney’s Q2 performance underscores its ability to execute across multiple verticals — from parks and film to streaming and consumer products. The continued rise in EPS, subscriber growth, and raised guidance all signal that the company is regaining its stride post-pandemic.
With momentum from upcoming blockbusters, a standalone ESPN+ service in the pipeline, and further expansion in its Experiences segment, Disney appears positioned for sustained growth into late 2025 and beyond.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investors should conduct independent research and consult with a licensed financial advisor before making investment decisions.
