Walt Disney Co. delivered impressive quarterly results, beating Wall Street expectations as resilient consumer demand lifted its theme parks and streaming business. Despite global economic uncertainties and concerns about tariffs, Disney reported adjusted earnings per share of $1.45 for the January-to-March period—well above the $1.20 expected by analysts polled by LSEG. Shares climbed nearly 10% in early trading following the announcement.
CEO Bob Iger expressed confidence in Disney’s performance amid a competitive media landscape, citing the company’s strong fundamentals. “I’m encouraged by the strength and resilience of our business,” Iger said.
Total revenue rose 7% year-over-year to $23.6 billion, exceeding analysts’ expectations of $23.14 billion. Operating income reached $4.4 billion. Disney also forecasted adjusted earnings of $5.75 per share for fiscal 2025, a 16% increase from the previous year.
The company’s Experiences division, which includes theme parks and cruise lines, saw operating income rise 9% to $2.5 billion. CFO Hugh Johnston noted steady attendance and increasing bookings for the third and fourth quarters, with the exception of slower traffic at the Shanghai and Hong Kong resorts due to the broader Chinese economic slowdown.
Disney+ added 1.4 million subscribers during the quarter, defying its earlier warning of a potential dip following a price hike. Hulu added another 1.1 million users. The streaming division reported operating income of $336 million, up from $47 million a year earlier. Johnston highlighted strong advertiser demand, particularly from the restaurant and healthcare sectors.
Iger emphasized the company’s strategic focus on turning streaming into a long-term growth engine through technological improvements, international content investments, and the integration of live sports via ESPN. The entertainment segment reported a 61% year-over-year jump in operating income to $1.3 billion.
Disney also announced plans to expand its Experiences division with a new theme park in Abu Dhabi and highlighted strong consumer response to its newest cruise ship, Disney Treasure. A second vessel is set to launch in Singapore. Iger believes the cruise line will become a major growth driver over the next few years.
The entertainment giant remains optimistic, with upcoming theatrical releases including Thunderbolts from Marvel, Zootopia 2, Pixar’s Elio, and Avatar: Fire and Ash expected to fuel momentum.
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News Source: Reuters.com
