The Walt Disney Company (DIS) Stock: Reports 20% YoY Gain in Adjusted EPS and Six Months Earnings for Fiscal 2025

TLDR

Disney stock closed at $92.17, up 0.07% ahead of earnings call Q2 revenue rose 7% to $23.6 billion, income before taxes surged to $3.1 billion EPS improved sharply to $1.81, adjusted EPS climbed 20% to $1.45 Disney+ subscribers hit 126 million, total streaming subs reached 180.7 million FY 2025 adjusted EPS forecast raised to $5.75, earnings date is May 7, 2025

The Walt Disney Company (NYSE: DIS) stock inched up 0.07% to close at $92.17 on May 6, ahead of its scheduled earnings call. The entertainment giant reported a strong fiscal second quarter for 2025, with significant gains in both revenue and earnings, powered by its Entertainment and Experiences businesses.

The Walt Disney Company (DIS) 

Q2 Earnings Powered by Entertainment and Experiences

Disney reported a 7% increase in revenue for the quarter, reaching $23.6 billion compared to $22.1 billion a year ago. Income before income taxes soared to $3.1 billion from $0.7 billion. Diluted EPS rose to $1.81, a sharp rebound from a $0.01 loss per share in the prior year. Adjusted EPS grew 20% to $1.45, beating last year’s $1.21.

The Walt Disney Company, $DIS, Q2-25. Results:
🟢 +6.3% Pre-Market

📊 Adj. EPS: $1.45 🟢
💰 Revenue: $23.6B 🟢
🔎 Strong performance in Entertainment and Experiences drove a 20% YoY gain in adjusted EPS, while Disney+ and Hulu subscriptions rose by 2.5M sequentially. pic.twitter.com/dIz2YUt2Nb

— EarningsTime (@Earnings_Time) May 7, 2025

Segment operating income advanced 15% to $4.4 billion. The Entertainment division led the charge with a $1.3 billion operating income, up by $0.5 billion. Disney’s Direct-to-Consumer arm also impressed, growing operating income by $289 million to reach $336 million.

Streaming Growth and Sports Trade-offs

Disney+ and Hulu subscriptions grew to 180.7 million, marking a 2.5 million gain from Q1. Disney+ itself added 1.4 million subscribers, reaching 126 million.

However, not all segments delivered upside. Sports operating income fell by $91 million to $687 million, as higher programming costs—linked to extra College Football Playoff and NFL games—outweighed revenue growth. Sports revenue rose 5%, helped by a 29% jump in domestic ad revenue, but results were impacted by a write-off from exiting the Venu joint venture.

Experiences Segment Delivers Steady Gains

The Experiences division remained a solid performer. Segment operating income grew by $0.2 billion to hit $2.5 billion. Domestic Parks & Experiences rose 13% to $1.8 billion, while Consumer Products posted a 14% increase to $0.4 billion.

Disney also repurchased $1 billion in shares during the quarter and is on track to meet its $3 billion buyback goal for the year.

Raised Outlook for Fiscal 2025

For the full year, Disney now expects adjusted EPS of $5.75, representing a 16% increase over fiscal 2024. Management also lifted its cash operations guidance to $17 billion, citing better-than-expected tax deferrals.

CEO Robert Iger noted strong momentum, pointing to upcoming film releases, ESPN’s new direct-to-consumer service, and major expansion projects in the Experiences segment as growth drivers for the remainder of 2025.

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