Disney’s profits rise due to strong streaming and US park earnings.

LOS ANGELES – Walt Disney’s quarterly earnings have surprisingly exceeded expectations, shining amidst a backdrop of global economic uncertainties and tariff concerns. The boost largely comes from an unexpected surge in its Disney+ streaming platform, alongside robust performance from its theme parks, suggesting that consumers remain resilient even in tough times.

“I feel encouraged by the consistent strength of our business, despite the ongoing macroeconomic questions and competitive pressures,” said Disney CEO Bob Iger.

Shortly before unveiling plans for a new theme park in Abu Dhabi, Disney reported adjusted earnings per share of $1.45 for the January to March period, well above the analysts’ consensus of $1.20. Consequently, shares jumped nearly 10% in early trading.

Danni Hewson from AJ Bell pointed out how, while many U.S. businesses are understandably worried about tariffs affecting consumer spending, Disney appears to be maintaining a confident stance.

Unlike numerous peers, Disney has shared an optimistic forecast for the remainder of the year. The entertainment behemoth is banking on its streaming services for profit growth as traditional television viewership wanes, all while expanding its theme parks and cruise lines amidst economic fluctuations.

Revenue increased by 7% to reach $23.6 billion, surpassing the expected $23.14 billion. Operating income stood at $4.4 billion.

Looking ahead, Disney forecasts adjusted earnings per share of $5.75 for fiscal 2025, marking a 16% rise from the previous year. The company reiterated its expectations for 6% to 8% growth in operating income from its park-centered Experiences division and double-digit growth within its entertainment unit.

Chief Financial Officer Hugh Johnston mentioned that the outlook remains robust, especially for the Experiences segment, noting an uptick in bookings for the third and fourth fiscal quarters. Attendance at theme parks remains strong, except for Shanghai Disney Resort and Hong Kong Disneyland, where lower turnout is attributed to the situation in China.

Referring to the new Disney Treasure cruise ship, Iger indicated it has received outstanding ratings, and the upcoming vessel in Singapore is generating interest. He anticipates that the cruise line will drive growth in the Experiences segment over the next several years.

In the last quarter, Disney+ gained 1.4 million new subscribers, following a period when the company had warned of possible declines post a price increase.

Additionally, Hulu grew by 1.1 million subscribers during the same period, with operating income for the streaming segment doubling significantly to $336 million, compared to just $47 million a year prior.

Iger expressed a positive outlook on transforming the streaming business into a sustainable growth entity by adding flagship sports content from ESPN, enhancing technology for personalization, and investing in international content.

The entertainment division reported $1.3 billion in operating income, marking a 61% increase from the previous year.

Johnston confirmed continued strong demand from advertisers, particularly in the restaurant and healthcare sectors.

Iger also highlighted the impressive performance of the latest Marvel release, “Thunderbolts,” and mentioned an exciting film lineup featuring new projects like “Elio,” “Zootopia 2,” and “Avatar: Fire and Ash.”

Within the Experiences unit, operating income increased by 9% to $2.5 billion, alongside rising cruise bookings with the launch of Disney Treasure.

Despite these positive results, Disney shares have dropped 17% this year, contrasting with a 4.7% decline in the S&P 500. Since April, the stock has decreased by 6.6%.