Disney posted solid profits and revenue in the second quarter as its domestic theme parks thrived and the company added well over a million subscribers to its streaming service.
The company also boosted its profit expectations for the year.
For the three months ended March 30, Disney earned $3.28 billion, or $1.81 per share. The Burbank, California, company lost $20 million, or a penny per share, a year earlier.
Removing one time charges or benefits, earnings were $1.45 per share, easily topping the $1.18 that Wall Street was expecting, according to a survey by Zacks Investment Research.
Revenue rose 7% to $23.62 billion, also topping projections.
Revenue for Disney Entertainment, it's movie studios and streaming, climbed 9%, while revenue for the Experiences division, its parks, increased 6%.
Recent box office hits include 鈥淢oana 2鈥 and 鈥淢ufasa: The Lion King.鈥 Its latest film, 鈥淭hunderbolts(asterisk),鈥 is currently s . CEO Bob Iger and Chief Financial Officer Hugh Johnston said in prepared remarks that they're confident in this year's movie slate, which includes 鈥淟ilo & Stitch,鈥 鈥淭he Fantastic Four: First Steps鈥 and 鈥淎vatar: Fire and Ash.鈥
Disney, however, faces potential ramifications from the launched by President Donald Trump. Other U.S. corporations have noted blowback by consumers in overseas markets and on Monday, opened a new salvo in his , targeting films made outside the U.S.
In a post Sunday night on his Truth Social platform, Trump said he has authorized the Department of Commerce and the Office of the U.S. Trade Representative to slap a 100% tariff 鈥渙n any and all Movies coming into our Country that are produced in Foreign Lands.鈥
Disney has come under some from Trump鈥檚 administration for other issues. In March the head of the Federal Communications Commission said that he was opening an investigation into Disney and its ABC television network to see whether they are 鈥減romoting invidious forms of DEI discrimination."
FCC Commissioner Brendan Carr announced the probe in to Iger. The company said at the time that it was reviewing the letter and was looking forward to answering the commission鈥檚 questions.
As of now, Disney's streaming business continues to grow. Its direct-to-consumer business, which includes Disney+ and Hulu, posted quarterly operating income of $336 million compared with $47 million in the prior-year period. Revenue increased 8%.
The Disney+ streaming service had a 2% increase in paid subscribers domestically, which includes the U.S. and Canada. There was a 1% rise internationally, which excludes Disney+ HotStar.
Total paid subscribers for Disney+ edged up 1% in the quarter to surprising 126 million subscribers, from 124.6 million in the first quarter. The Walt Disney Co. previously said that it expected a modest decline in Disney+ subscribers in the second quarter when compared with the first three months of the year.
Disney+ and Hulu subscriptions totaled 180.7 million, up 2.5 million from the first quarter.
Iger and Johnston said that Disney has benefited from success at the box office, which becomes content for its growing streaming service. 鈥淢oana 2" has more than 139 million hours streaming since hitting Disney+ on March 12, making it the biggest Walt Disney Animation Studios' premiere on the platform since 鈥淓ncanto,鈥 he said. The first 鈥淢oana鈥 film remains the most watched movie on Disney+ with more than 1.4 billion hours streamed.
The Moana franchise also drives traffic at Disney's theme parks, with meet and greets with characters at theme parks and on cruise ships and the Journey of Water at Epcot at Walt Disney World in Orlando, Florida.
The Experiences division, which includes Disney's six global theme parks, its cruise line, merchandise and videogame licensing, reported operating income rose 9% to $2.5 billion. Operating income climbed 13% at domestic parks. Operating income dropped 23% for international parks and Experiences, due to softness at its Shanghai and Hong Kong theme parks.
Disney also announced Wednesday that it will build its seventh theme park in Abu Dhabi. The waterfront resort will be located on Yas Island and be Disney鈥檚 seventh theme park.
The theme park will be built and run by the developer Miral, with Disney licensing its intellectual property for the project and providing development and management services, according to a regulatory filing. Disney, which won鈥檛 provide any capital, will earn royalties based on the project鈥檚 revenues and will also earn service fees.
While Disney continues to pull levers to successfully manage all of the different components of its business, it also continues to work on its search for a to Iger, the face of Disney for most of the past two decades.
Disney created a succession planning committee in 2023, but the search began in earnest last year when the company Morgan Stanley Executive Chairman James Gorman to lead the effort.
Disney does have some time, as Iger agreed to a contract that keeps him at the company through the end of 2026.
Disney is looking at internal and external candidates. The internal candidates are widely believed to include the chairman of Disney-owned ESPN, Jimmy Pitaro, Chairperson of Walt Disney Parks and Resorts Josh D鈥橝maro, Disney Entertainment Co-Chairman Alan Bergman and Disney Entertainment Co-Chairman Dana Walden.
Disney is projecting full-year adjusted earnings of $5.75 per share, which is better than the $5.43 per share that analysts polled by FactSet are looking for. The company鈥檚 previous guidance was for high-single digit adjusted earnings per share growth for .
Shares surged more than 6% before the market open on Wednesday.
