Disney Stock Soars 9.16% on Earnings Beat, Expansion Plans

On May 7, 2025, The Walt Disney's stock surged by 9.16% in pre-market trading, driven by strong second-quarter earnings and strategic expansions.

Disney's second-quarter earnings exceeded expectations, with revenue reaching $23.62 billion, surpassing the estimated $23.05 billion. The company's adjusted earnings per share were $1.45, higher than the anticipated $1.20. Disney also raised its full-year earnings guidance to $5.75 per share, exceeding market estimates of $5.44 per share.

The strong performance was attributed to robust growth in theme parks and streaming services. Disney's "Experiences" segment, which includes resorts and cruises, saw a 9% increase in operating income to $2.49 billion. The company's domestic parks in California and Florida reported a 13% rise in operating income, while Shanghai Disney Resort and Hong Kong Disneyland faced declines due to macroeconomic pressures.

In the streaming sector, Disney+ and Hulu's price increases boosted the Direct-to-Consumer (DTC) segment's profitability, achieving its fourth consecutive quarter of profitability with earnings of $336 million. Disney+ added 1.4 million subscribers this quarter, surpassing analyst expectations of a 1.25 million subscriber loss. The company expects a slight increase in Disney+ subscribers in the third quarter.

Disney's expansion into the Middle East with a new theme park in Abu Dhabi, in collaboration with Miral, further solidifies its global presence and growth prospects. The new resort, located on Yas Island, will attract tourists from the Middle East, Africa, India, Asia, Europe, and other regions, leveraging Abu Dhabi's status as a major global aviation hub.