Disney Reports Better-Than-Expected Q2 Results, Revenue Hits $23.6 Billion

The Walt Disney Company reported stronger-than-expected financial results for the first quarter of 2025, with revenue rising 7% year-over-year to $23.6 billion and adjusted EPS beating analyst estimates by nearly 20%. This growth was primarily fueled by robust performances in the Entertainment and Experiences divisions, while the Sports segment faced higher costs despite revenue gains. Disney's Direct-to-Consumer segment, anchored by Disney+ and Hulu, saw subscriber numbers and operating income improve, contributing to overall margin expansion. Despite recent stock volatility and a challenging market environment, analysts remain optimistic about Disney's future, forecasting a substantial potential upside for its share price and maintaining an 'Outperform' consensus. The company projects continued growth in streaming subscribers and further gains in adjusted earnings for the remainder of fiscal 2025. However, Disney faces ongoing challenges from shifting consumer preferences, rising operational costs, and stiff competition in both streaming and theme parks.