Disney Stock Soars 8.66% on Strong Earnings

The Walt Disney's stock surged 8.66% in pre-market trading on May 7, 2025, driven by strong second-quarter earnings that exceeded analyst expectations.

Disney reported second-quarter revenue of $23.62 billion, surpassing the estimated $23.05 billion. The company's adjusted earnings per share (EPS) for the quarter were $1.45, beating the forecast of $1.20. Disney also raised its full-year adjusted EPS guidance to $5.75, up from the previous estimate of $5.44. Additionally, the company increased its forecast for full-year operating cash flow to $17 billion, up from the previous estimate of approximately $15 billion.

Disney's CEO, Bob Iger, expressed optimism about the company's future, highlighting upcoming movie releases, new ESPN direct-to-consumer products, and significant expansion projects in the experience business. Despite economic uncertainties, Disney remains confident in its growth trajectory and plans to continue investing in new content and experiences.

Disney+ subscribers grew to 126 million, exceeding market expectations. The company anticipates a slight increase in subscribers for the third quarter, following a small decline in the first quarter. Analysts had previously predicted a slight decrease in subscribers for the second quarter.