Disney Q2 Sales Meet Estimates, Revenue Up 2.1% YoY

Disney (NYSE:DIS) reported Q2 sales of $23.65 billion, up 2.1% YoY, in line with estimates. Non-GAAP profit of $1.61 per share was 11.5% above analysts' consensus estimates. The company's operating margin increased to 19.3%, and free cash flow margin rose to 8%. Disney's market capitalization is $212.7 billion.

Disney (NYSE: DIS) reported Q2 sales of $23.65 billion, up 2.1% year-over-year (YoY), in line with analysts' estimates. The company's non-GAAP profit of $1.61 per share was 11.5% above the consensus estimates, demonstrating robust financial performance. Disney's operating margin increased to 19.3%, and free cash flow margin rose to 8%, indicating strong operational efficiency. The company's market capitalization stands at $212.7 billion [1].

Disney's Q2 results were driven by significant growth in key segments. The Entertainment segment saw a 9% revenue increase to $10.68 billion, fueled by blockbuster releases like "Mufasa: The Lion King" and "Moana 2." The Sports segment, led by ESPN, grew by 5% with a notable 29% increase in domestic advertising revenue, although higher programming costs offset some of this growth. The Experiences segment, including theme parks and consumer products, delivered a 13% operating income increase, despite a 5% decline in international park revenue [1].

Disney's streaming service, Disney+, added 1.4 million subscribers in Q2, reaching 126 million globally. The direct-to-consumer (DTC) segment's operating income rose to $336 million, signaling improved profitability. The company also committed to share repurchases of $1 billion in Q2, underscoring its focus on returning value to shareholders [1].

However, Disney faces several risks. The Sports segment's operating income dipped due to incremental costs, while the international park revenue decline highlights exposure to geopolitical and economic instability. Additionally, streaming competition from Netflix and Amazon Prime remains a significant challenge [1].

Disney's Q2 results validate its strategic pivot towards streaming, theme parks, and direct-to-consumer engagement. The company's revised FY2025 adjusted EPS guidance of $5.75 (up from $5.30) reflects confidence in sustaining this trajectory. For long-term investors, the key question is whether Disney can maintain its 16% EPS growth rate while navigating macroeconomic and competitive pressures [1].

References:

[1] https://www.ainvest.com/news/disney-q2-2025-earnings-tale-resilience-strategic-gains-2508/