In a statement released on Wednesday, Disney indicated that its full-year fiscal 2025 earnings, excluding certain items, are now projected to rise by 16 per cent to US$5.75 per share. This revised forecast represents approximately double the company's previous growth estimate and surpasses the $5.44 per share anticipated by analysts.
This upward revision comes at a time when a number of major corporations have withdrawn their 2025 guidance due to the economic uncertainties stemming from U.S. President Donald Trump’s tariffs on imported goods. However, Disney is currently benefiting from stronger-than-anticipated growth in its theme parks and streaming divisions, providing the confidence to elevate its financial outlook.
“We remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year,” affirmed Chief Executive Officer Bob Iger in the company's statement.
For the fiscal second quarter, excluding certain items, Disney's earnings per share increased by an impressive 20 per cent to $1.45, comfortably beating the average analyst estimate of $1.20 per share compiled by Bloomberg. Revenue for the period ending March 29 also exceeded expectations, rising by seven per cent to $23.6 billion.
Looking ahead to the current third quarter, Disney's management stated that they anticipate a modest sequential increase in the number of Disney+ subscribers.
The company's experiences division, encompassing its resorts and cruises, saw a boost in performance driven by increased visitor numbers at parks in California and Florida, strong sales of holiday packages, and a higher volume of bookings resulting from the launch of the Disney Treasure cruise ship in December.
The entertainment division also contributed positively to the overall results, benefiting from recent price increases across Disney’s streaming services, including Disney+ and Hulu. These price adjustments helped the direct-to-consumer segment achieve its fourth consecutive quarter of profitability.
The movie division's performance was bolstered by the continued strong sales of Moana 2 and Mufasa: The Lion King, both of which were released late last year and continued to generate significant revenue in the last quarter. Their success helped to offset the weaker box-office performances of Captain America: Brave New World and Snow White, which were released in February and March, respectively.
Chief Financial Officer Hugh Johnston has emphasized Disney's ongoing commitment to improving the profitability of its online video platforms, projecting that the company will generate $1 billion from streaming in the current fiscal year.
Profitability from sports programming, including ESPN, experienced a decline due to higher programming and production costs. However, this segment still managed to surpass Wall Street's estimates. ESPN is currently preparing to launch a significant new streaming service in the fall, and the company forecasts an 18 per cent growth in operating income for the full year.
Disney has also been actively engaged in share repurchases, having bought back $1.8 billion of its stock so far this fiscal year.
While Disney anticipates some impact from the upcoming opening of Comcast Corp.’s Epic Universe theme park in Orlando later this month, CFO Hugh Johnston indicated in February that summer bookings at Walt Disney World have not shown any signs of decline. This suggests continued strong demand for Disney's theme park offerings despite increased competition in the Orlando market.