Disney Delivers a Thrilling Earnings Ride—Here’s What Bulls Are Celebrating

Investors, buckle up! Disney’s Q2 2025 earnings report was a spectacular showstopper, with streaming subscriber growth defying Wall Street’s gloomy forecasts and theme parks proving their resilience. This isn’t just a victory—it’s a signal that Disney’s content machine and park magic are back in full force. Let’s unpack the numbers and why this could be a blockbuster quarter for bulls.

The Streaming Surprise: Disney+ Adds 1.4M Subscribers—A Shocking Win for Content

Analysts expected Disney+ to lose 1.1 million subscribers in Q2, but the reality was diametrically different. Disney+ added 1.4 million subscribers, pushing total subscribers to 126 million—a +1.1% sequential jump. This was no fluke: hits like Moana 2, Mufasa: The Lion King, and the Daredevil: Born Again series drove 7.5 million views in five days, proving Disney’s knack for high-quality content still dazzles audiences.

The real magic? Pricing power. Disney+’s average revenue per user (ARPU) rose 3% to $7.77, thanks to price hikes and a shift toward higher-margin international markets. Hulu also surged, adding 1.1 million subscribers, pushing total combined subscriptions to 180.7 million. This direct-to-consumer segment’s revenue jumped 8% to $6.12 billion, with operating income soaring to $336 million—a 289% year-over-year leap.

Parks: Domestic Thrills, International Challenges

Disney’s theme parks delivered a dramatic split-screen performance. Domestic parks (U.S. and Canada) roared back with 13% higher operating income to $1.8 billion, fueled by 9% revenue growth to $6.5 billion. The launch of the Disney Treasure cruise ship and strong guest spending—despite fears of a consumer slowdown—proved Americans are still willing to spend big on Disney magic.

But international parks stumbled. Shanghai and Hong Kong Disney Resorts faced a 23% drop in operating income to $1.44 billion, with per capita spending hit by China’s economic headwinds. CFO Hugh Johnston admitted: “Attendance in China remains strong, but wallets are tighter.”

The CEO’s Playbook: Betting on Growth and Expansion

CEO Bob Iger isn’t resting on his laurels. He’s doubling down on content dominance and park expansions. For 2025, Disney expects:
- Entertainment segment operating income to grow double-digit (thanks to streaming and film hits).
- Sports segment growth of 18% (driven by ESPN’s ad revenue surge and DTC launches).
- Parks operating income to rise 6%-8%, with Iger confident they’ll hit the high end of guidance.

The company also raised its full-year adjusted EPS forecast to $5.75, a 16% jump from 2024. With $5.6 billion in free cash flow already in the first half, Disney’s balance sheet is rock solid.

The Bottom Line: Disney’s Earnings Are a Must-Own Story for Bulls

Disney’s results shattered expectations, and investors are rewarding it with an 11% stock surge post-earnings. Here’s why this isn’t a one-off:
- Streaming’s comeback: Disney+ proved it can compete with Netflix and Amazon by prioritizing blockbuster content over subscriber growth at any cost.
- Parks’ staying power: Domestic parks are recession-resistant, while international headwinds are manageable with time.
- Cash flow king: Disney’s free cash flow is up 71% year-over-year, giving it the fuel to buy back stock, invest in new attractions, or acquire content gems.

Final Takeaway: Disney’s Earnings Are a Green Light to Buy—But Watch China

Disney’s Q2 was a home run, but bulls must stay vigilant. While domestic parks and streaming are firing on all cylinders, China’s recovery will be key to unlocking international parks’ full potential. Still, with $23.6 billion in revenue, a 20% jump in adjusted EPS, and a $7.77 ARPU beat, this isn’t just a good quarter—it’s a statement of Disney’s dominance.

If you’re on the sidelines, now’s the time to get aboard the Magic Kingdom train. The ride’s just getting started!

Investor Action: Buy Disney stock (DIS) on dips below $160. Target: $180 by year-end. Risk: China’s economic slowdown could drag on international parks.