Disney Strong Q2: Parks Surge, Streaming Adds 1.4M Subscribers/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Disney reported a strong second quarter, driven by thriving theme parks and a surprise 1.4 million increase in streaming subscribers. Profit topped expectations, and the company raised its full-year earnings forecast. Meanwhile, Disney navigates external pressures from Trump-era tariffs and ongoing FCC scrutiny.
Disney Q2 Growth Quick Looks
- Q2 profit hit $3.28B, reversing a year-ago loss.
- Streaming subscribers rose 1.4 million, exceeding forecasts.
- Disney+ and Hulu reached 180.7 million total subscribers.
- Box office hits like Moana 2 and Mufasa boost revenue.
- U.S. parks grew operating income by 13%; international parks dropped 23%.
- New Disney theme park announced for Abu Dhabi.
- FCC investigating Disney over alleged DEI bias.
- Trump targets foreign-made films with 100% tariffs, adding uncertainty.
- Iger’s succession search continues as he stays through 2026.
- Full-year EPS guidance raised to $5.75, beating Wall Street expectations.
Deep Look: Disney Parks and Streaming Power Q2 Surge, Company Lifts Forecasts Despite External Pressures
The Walt Disney Company delivered a robust second-quarter performance, fueled by booming attendance at its domestic theme parks and a stronger-than-expected rise in streaming subscribers. Disney earned $3.28 billion in the quarter ending March 30, or $1.81 per share—rebounding from a $20 million loss in the same period last year.
Excluding one-time items, adjusted earnings were $1.45 per share, easily surpassing the $1.18 average analyst estimate, according to Zacks Investment Research. Total revenue climbed 7% to $23.62 billion, also beating expectations.
CEO Bob Iger and CFO Hugh Johnston touted the company’s operational momentum, announcing an upgrade in Disney’s full-year adjusted earnings forecast to $5.75 per share, well ahead of Wall Street’s $5.43 consensus.
Theme Parks and Experiences Shine
Disney’s Experiences division, which includes theme parks, cruises, and merchandise, saw a 6% revenue increase and a 9% rise in operating income to $2.5 billion. U.S. parks were the standout, with operating income surging 13%, offsetting a 23% decline at international parks—attributed to weaker performance in Shanghai and Hong Kong.
To build on this success, Disney announced its first new international theme park since Shanghai Disneyland in 2016: a seventh global park will be developed on Yas Island in Abu Dhabi. The resort will be funded and built by local developer Miral, with Disney licensing its brand and providing development support. Disney won’t contribute capital but will earn royalties and service fees.
Streaming Growth Exceeds Expectations
Disney’s direct-to-consumer division, home to Disney+ and Hulu, posted operating income of $336 million—up significantly from $47 million a year earlier. Revenue in the segment grew 8%.
Against expectations of a subscriber dip, Disney+ gained 1.4 million subscribers in Q2, reaching 126 million globally. Domestically (U.S. and Canada), subscriptions increased 2%, with a 1% rise internationally (excluding HotStar). Disney+ and Hulu combined now have 180.7 million subscribers, up 2.5 million from Q1.
Popular content continues to fuel engagement. Moana 2, which debuted on Disney+ in March, logged more than 139 million streaming hours, making it the most successful Disney Animation Studios debut since Encanto. The original Moana remains Disney+’s most-watched title with over 1.4 billion hours streamed.
This streaming success translates directly to the parks, where Moana-themed attractions and experiences drive visitor traffic and merchandise sales.
Hollywood Hits and Future Releases
Disney Entertainment, which includes its movie studio and streaming production, posted a 9% revenue jump in the quarter. Recent box office hits include Moana 2, Mufasa: The Lion King, and Thunderbolts, which is currently leading at the box office.
Iger and Johnston expressed optimism about the upcoming film slate, which includes Lilo & Stitch, The Fantastic Four: First Steps, and Avatar: Fire and Ash—all expected to perform strongly in both theaters and on Disney+.
External Pressures Mount from Trump Administration
Despite the strong quarter, Disney faces potential headwinds from political developments. President Donald Trump recently proposed a 100% tariff on all foreign-made films, a move that could disrupt Disney’s global content pipeline. The tariffs are part of a broader trade war strategy and may affect box office revenue and content costs if enforced.
The administration is also targeting Disney with regulatory scrutiny. In March, FCC Commissioner Brendan Carr launched an investigation into alleged “invidious DEI discrimination” at Disney and its ABC network. Disney acknowledged the inquiry and said it is cooperating.
Leadership Transition Underway
As the company continues to perform well, attention is turning to Disney’s long-term leadership. Bob Iger, the influential CEO who returned to stabilize Disney in 2022, extended his contract through 2026. A formal succession plan is in motion, led by Morgan Stanley Executive Chairman James Gorman.
Internal candidates believed to be in contention include ESPN Chairman Jimmy Pitaro, Parks Chair Josh D’Amaro, and Disney Entertainment Co-Chairs Dana Walden and Alan Bergman. Iger’s successor will inherit a transformed company balancing legacy brands with streaming-first strategies.
Market Reaction and Outlook
Investors responded enthusiastically to the Q2 results and optimistic guidance. Disney shares surged more than 6% in premarket trading Wednesday. The company now expects full-year adjusted earnings per share of $5.75, significantly above its prior guidance and market consensus.
As Disney juggles global politics, leadership changes, and evolving media landscapes, its diversified empire—anchored in parks, franchises, and streaming—continues to drive growth and long-term confidence.
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