Disney boosts earnings outlook amid strong quarter performance

In the United States, on May 7, 2025, Disney reported robust fiscal second-quarter results, driven by an increase in streaming subscribers. The entertainment giant announced adjusted earnings of $1.45 per share, surpassing analysts' expectations of $1.20 per share, while revenue reached $23.62 billion against a consensus estimate of $23.14 billion. Following these results, Disney also raised its full-year earnings guidance to $5.75 per share, sparking significant enthusiasm among investors and analysts alike. Shares rose more than 10%, leading to the strongest performance in the Dow Jones Industrial Average for the day. This notable quarterly performance comes amidst ongoing concerns about macroeconomic conditions impacting key segments of the business, particularly theme parks and streaming. Analysts had noted the vulnerability of these segments but were pleasantly surprised to see revenue growth across all areas. For instance, the parks business showed resilience, while the direct-to-consumer segment continued to attract subscribers despite competition and market pressures. Various analysts, such as those from Barclays, Bank of America, and Goldman Sachs, expressed optimism regarding Disney's potential for further growth, citing strong indicators from recent film releases and renewed interest in its theme parks. Barclays maintained an overweight rating with a target price reflecting a significant upside potential. Similarly, Bank of America has a buy rating with an optimistic outlook for profitability. Goldman Sachs underscored expectations for continued growth in Disney's experiences segment, bolstered by favorable attendance figures in domestic theme parks. Furthermore, the company's strategy to enhance profitability in direct-to-consumer offerings through bundled services and addressing challenges such as password sharing is noteworthy. Disney's overall performance has been a bright spot in a challenging environment for media companies. Analysts believe that the company is in a strong position relative to peers due to its diversified offerings and innovative strategies. The successful quarterly results and revised earnings guidance enhance confidence in Disney's long-term growth trajectory, making it one of the most attractive options for investors in the media space right now.