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Walt Disney boosted its outlook for the financial year after price increases for its streaming services and strong attendance at its US theme parks pushed earnings above Wall Street’s expectations in its latest quarter.
The performance of its streaming and US parks businesses helped offset lacklustre results for Disney’s controversial Snow White remake, but also suggest consumer spending remained relatively resilient in the first three months of 2025.
Disney on Wednesday forecast strong performance for the rest of its financial year across its entertainment, sport and theme park business, but warned that “uncertainty remains in the operating environment” as questions swirl in the market about the impact of Donald Trump’s tariff policies.
Still, Disney boosted several of its guidance metrics, with chief executive Bob Iger saying: “Overall, we remain optimistic about the direction of the company and outlook for the remainder of the fiscal year.”
The entertainment giant said on Wednesday it expected to report adjusted earnings of $5.75 a share for its financial year, which ends in September. That represents an increase of 16 per cent from 2024, exceeding the $5.43 a share Wall Street expects and the company’s own prediction three months ago for “high single-digit” growth.
Disney anticipates cash provided by operations to hit $17bn this financial year, $2bn more than its prediction in February and higher than the $14.7bn Wall Street has forecast. The group also boosted its outlook for operating income growth in its sports segment to 18 per cent, from 13 per cent three months ago.
Disney swung to net income of $3.28bn in its second quarter from a loss of $20mn a year earlier, beating Wall Street expectations for $1.88bn, as revenues rose 7 per cent to $23.6bn. Adjusted earnings of $1.45 a share were up 20 per cent from 12 months ago and topped analysts’ forecasts for $1.20 a share.
Despite recent concerns about belt-tightening by US consumers, Disney’s theme parks in Florida and California performed well, with revenue rising 9 per cent from a year earlier. Guest spending at its US parks rose, while its cruise business grew following the launch of the Disney Treasure ship at the start of 2025.
In its international markets, attendance fell at Shanghai Disney Resort and Hong Kong Disneyland.
Price increases at Disney+ and Hulu pushed the company’s streaming revenue up 8 per cent from a year earlier, though the company said it expected only “modest increases” in subscribers in the current quarter. Combined, the two services have about 180mn subscribers.
Management maintained its guidance for operating income to grow this financial year in Disney’s experiences unit, which includes its theme parks, and entertainment division.
Disney shares are down by more than 17 per cent so far this year.
