Disney stock is making waves this week after the company posted a blockbuster fiscal Q2 earnings report that crushed Wall Street expectations and delivered a sharp pivot in guidance.
The House of Mouse reported adjusted earnings per share of $1.45, blowing past the $1.20 forecast. Revenue came in at $23.62 billion, up 7% year-over-year, easily clearing the street’s target of $23.05 billion.
But the biggest shocker? Disney raised its full-year earnings guidance to $5.75 per share, nearly doubling its earlier forecast of high single-digit growth. Analysts had projected 2025 EPS at $5.44, making the new target a clear bullish signal.
Shares of Disney surged as much as 8.5% in premarket before settling around +6%, as investors cheered the strong performance, especially in a quarter overshadowed by economic uncertainty and Trump-era tariff anxieties.
Streaming Turns the Corner
One of the brightest spots in the report was Disney’s streaming division, with Disney+ adding 1.4 million subscribers, a massive beat considering Bloomberg analysts had expected a loss of 1.25 million subs.
The streaming unit, which includes Disney+ and Hulu, delivered $336 million in profit, marking its fourth consecutive profitable quarter, a milestone that reinforces CEO Bob Iger’s ongoing shift toward direct-to-consumer services.
With a 2025 streaming profit target of $875 million, Disney is finally turning its massive investment in streaming into tangible gains. And with password-sharing crackdowns and strategic pricing tweaks now in play, the streaming unit may become a pillar of long-term profitability.
Theme Parks Dominate Again
Despite fears of a slowdown, Disney’s domestic parks business roared back to life, with 13% operating income growth. Increased guest spending and the successful launch of the Disney Treasure cruise ship powered the rebound.
That’s a significant turnaround from the 5% decline reported in Q1, signaling stronger consumer sentiment, at least domestically. International parks still lagged, facing global uncertainties and tourism volatility.
Disney didn’t ignore the looming threat of NBCUniversal’s upcoming Epic Universe in Florida, but it clearly believes its brand power and infrastructure investments will keep the momentum going through 2025.
Political Uncertainty Still Looms
In its earnings release, Disney acknowledged that President Trump’s evolving trade policies could have ripple effects across the entertainment and tourism sectors. While not quantifying the impact, the company admitted that macroeconomic conditions remain a “wildcard” for the second half of the year.
Still, Disney’s willingness to raise guidance in that climate signals internal confidence.
What It Means for Disney Stock
Wall Street was already warming back up to Disney stock after years of stagnant performance and streaming losses. This earnings report, and the revised 2025 forecast, will likely accelerate that bullish momentum.
Here’s the breakdown:
- Q2 Revenue: $23.62B (+7% YoY)
- Adjusted EPS: $1.45 (vs. $1.20 expected)
- Streaming Profit: $336M (vs. $47M YoY)
- Disney+ Net Adds: +1.4M subscribers
- Domestic Parks Operating Income: +13%
- Revised FY EPS Outlook: $5.75 (vs. $5.44 consensus)
Disney stock (DIS) was trading near $99.89 premarket, up more than 8% at the time of writing.
Investors and analysts will now be watching to see whether Disney can sustain this momentum, especially in a market where streaming profitability and consumer sentiment are under a microscope.
