Disney Q2 2025 Earnings Show Growth in Streaming and Parks

The Walt Disney Co. blew past Wall Street earnings expectations in its latest quarter, the company’s fiscal Q2.

The company delivered revenue of $23.6 billion, up 7% from a year prior, and operating income of $4.4 billion, an improvement of 15% from a year earlier.

Every division: Entertainment, sports and experiences, beat expectations, with streaming driving particular growth in the entertainment division.

Disney’s entertainment division had revenue of $10.7 billion, up 9% vs the prior year, with operating income of $1.3 billion, up 61% from last year. Direct-to-consumer operating revenue soared to $336 million, compared to $47 million in the same quarter a year ago.

In fact, after losing 700,000 Disney+ subscribers in the prior quarter, the company added 1.4 million subscribers in its latest quarter, bringing its Disney+ subscriber total to 126 million. ARPU also improved to $7.77. Hulu’s SVOD offering added 1.3 million subscribers, likely helped by the integration into Disney+

In the experiences division, revenues rose by 6% to $8.9 billion, while operating income rose by 9% to $2.5 billion. The growth was attributable to the U.S. parks, as well as Disney Vacation Club and Disney Cruise Line, with the international parks down slightly year over year.

At sports, revenue rose by 5% to $4.5 billion, with operating income falling 12% to $687 million. The decrease was due to the presence of three extra college football playoff games and one extra NFL game in the quarter, which increased costs, offset by a boost in advertising.

And while some other companies are pulling guidance, Disney continues to give investors a window into its expectations, forecasting modest growth in Disney+ subscribers in Q3, and double digit growth in entertainment and sports this year, though it acknowledged the macroeconomy and uncertainty of the current moment.

Disney’s most ambitious and important theatrical films are also set to release in the second half of the year, including Marvel’s The Fantastic 4, and the next Avatar film.

“Our outstanding performance this quarter — with adjusted EPS up 20% from the prior year driven by our Entertainment and Experiences businesses — underscores our continued success building for growth and executing across our strategic priorities,” said Disney CEO Bob Iger in a statement. “Following an excellent first half of the fiscal year, we have a lot more to look forward to, including our upcoming theatrical slate, the launch of ESPN’s new DTC offering, and an unprecedented number of expansion projects underway in our Experiences segment. Overall, we remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year.”