The Walt Disney Company reported second-quarter earnings for fiscal year 2025, bringing in $23.6 billion in total revenue across all divisions. That figure represents a 7% increase over the same quarter in 2024, when the company posted $22.1 billion. While it was a slight dip from the $24.69 billion reported in the first quarter of 2025, the performance reflects steady momentum in key areas.
Entertainment and Experiences were once again at the heart of Disney’s growth story. Streaming services and domestic parks continued to deliver solid results, while international operations faced new challenges.
Streaming and Parks Drive Results
Disney’s streaming platforms, including Disney+ and Hulu, collectively reached 180.7 million subscribers during the quarter. That’s an increase of 2.5 million from the first quarter of the year. Disney+ alone added 1.4 million subscribers, bringing its total to 126 million, reversing the losses seen earlier in the fiscal year after price increases.
In the Experiences segment, Disney noted a rise in cruise bookings, park attendance, hotel occupancy rates, and guest spending at its U.S. properties. These gains more than offset some of the rising operational expenses associated with expanding the cruise line and upgrading park experiences.
On the other hand, international parks struggled, with weaker attendance at Shanghai Disney Resort and Hong Kong Disneyland contributing to a loss in that division. Higher costs in those markets also weighed on results.
Streaming Business Hits Profit Milestone
One of the standout achievements in Disney’s latest report was the performance of its direct-to-consumer (DTC) streaming business, which includes Disney+ and Hulu. Despite ongoing price hikes and new measures to address password sharing, the segment posted a $336 million profit. That’s a significant leap from $47 million a year earlier and well ahead of industry expectations.
This marked the fourth consecutive quarter of profitability for Disney’s streaming operations. Consistent profits in this area are essential as viewers continue to migrate from traditional cable packages to subscription-based streaming services. Disney is targeting roughly $875 million in streaming profits for fiscal 2025, making these results an important step toward that goal.
Domestic Parks Outperform Despite Competition
Economic uncertainty and growing theme park competition, especially with NBCUniversal’s highly anticipated Epic Universe on the horizon, continue to put pressure on Disney’s parks business. However, domestic parks held strong in the second quarter.
Operating income at U.S. parks rose by 13%, powered by increased park attendance, boosted guest spending, and the launch of the Disney Treasure cruise ship. This rebound was a notable improvement compared to a 5% decline in operating income during the first quarter of 2025.
Higher guest spending and full hotel occupancy rates in the U.S. helped alleviate concerns about a potential slowdown in consumer travel demand. However, those gains were partially offset by the rising costs tied to Disney Cruise Line’s expansion, with two more ships scheduled to debut later this year.
International Parks See Sharp Decline
While the domestic market proved resilient, international operations faced headwinds. Operating income at Disney’s overseas parks fell by 23%, driven by lower attendance figures and increased expenses in both Shanghai and Hong Kong. Broader economic challenges in those regions also played a role in the downturn, limiting discretionary spending and tourism.
Despite these setbacks, Disney raised its full-year earnings forecast to $5.75 per share, a 16% improvement over fiscal 2024 and nearly double the company’s earlier guidance for modest single-digit growth.
With new competition like Epic Universe coming, do you think Disney’s U.S. parks can hold on to their lead? Why or why not?