Walt Disney Co. (DIS.N) delivered a blockbuster earnings report for the first quarter of 2025, beating analyst expectations on the strength of its Disney+ streaming platform and U.S. theme park revenues, as consumers continue to spend despite global economic uncertainty and tariff-related headwinds.
Shares jumped nearly 10% in early trading after Disney posted adjusted EPS of $1.45, well ahead of the $1.20 consensus (LSEG), and revenue of $23.6 billion, surpassing expectations of $23.14 billion. Operating income hit $4.4 billion, up significantly year-over-year.
“Despite questions around macroeconomic uncertainty or the impact of competition, I’m encouraged by the strength and resilience of our business,” CEO Bob Iger told investors.
Streaming Fuels Momentum
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Disney+ added 1.4 million subscribers this quarter
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Hulu added 1.1 million subscribers
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Streaming operating income jumped to $336 million, up from $47 million a year ago
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Disney reiterated its goal of turning streaming into a “true growth business”, adding live ESPN sports, better personalization, and more international content
Parks and Experiences: A Steady Growth Engine
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Operating income for Experiences rose 9% to $2.5 billion
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Bookings up for Q3 and Q4 in U.S. parks
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New cruise ship, Disney Treasure, received “sky high” ratings, and a Singapore-based vessel is in the pipeline
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Abu Dhabi theme park announced, signaling global expansion
CFO Hugh Johnston affirmed that U.S. park attendance remains strong, though Shanghai Disney Resort and Hong Kong Disneyland saw drops, attributed to China’s economic slowdown.
Financial Outlook:
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FY 2025 EPS guidance: $5.75 (a 16% increase YoY)
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Experiences division: 6–8% operating income growth expected
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Entertainment division: Double-digit income growth forecast
Additional Highlights:
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Upcoming film slate includes Pixar’s “Elio,” “Zootopia 2,” and “Avatar: Fire and Ash”
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Marvel’s “Thunderbolts”* noted as a recent box office success
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Ad sales remain strong, especially in restaurant and healthcare sectors
Despite the strong quarter, Disney shares are still down 17% YTD, underperforming the S&P 500’s 4.7% drop. However, the company’s robust subscriber growth, cruise expansion, and upcoming content slate suggest growing investor optimism for a sustained turnaround.