The Walt Disney Company (DIS) delivered a market-moving combination of upbeat earnings and bold global expansion on Wednesday.
The company's report sent its stock soaring more than 10%—its strongest single-day performance in years. The entertainment giant reported adjusted earnings of $1.45 per share on revenue of $23.6 billion for its fiscal second quarter, far surpassing Wall Street expectations of $1.19 EPS and $23.1 billion in revenue.
This beat wasn’t just about strong content. Disney’s domestic theme parks, long seen as vulnerable to inflation and economic slowdown, generated $8.9 billion in revenue—up 6% year-over-year and ahead of the $8.7 billion analysts had anticipated. Operating income for the Experiences segment rose 9% to $2.5 billion, bolstered by new attractions and increased guest spending at Walt Disney World.
With the company lifting its full-year earnings forecast to $5.75 per share—marking 16% growth over 2024—Disney appears to be reversing its multi-year underperformance. The stock, which had been down 19% year-to-date prior to the earnings release, regained much of that ground, closing near $102.
Middle East Expansion: A New Chapter in Global Strategy
Alongside its earnings, Disney announced a surprise move: it will bring its first-ever theme park to the Middle East. The new resort is set to open on Yas Island in Abu Dhabi, marking Disney’s seventh branded park and its first major international expansion since Shanghai Disneyland opened in 2016.
The project, in partnership with UAE-based developer Miral, will be structured as a licensing agreement. Disney will not invest capital or retain ownership, but will design the park and receive royalties tied to its performance—mirroring the company’s Tokyo Disney Resort model. Miral will fund, construct, and operate the park, which Disney calls its “most advanced and interactive destination” yet.
Disney CEO Bob Iger emphasized Abu Dhabi’s strategic location and growing tourism appeal, noting that 500 million people live within a four-hour flight of the emirate. “It was very, very clear to us that of all of the places we could choose from, there didn't seem to be any place better than this,” Iger said during the earnings call.
The move aligns with Disney’s broader $60 billion investment strategy in Experiences through 2033, half of which is earmarked for existing parks in Florida and California. The Abu Dhabi project is expected to open in or after 2028 and could boost Disney’s operating income by 3% to 5% annually, according to analyst estimates.
Streaming Gains, Creative Hits, and a Cautious Optimism
Disney’s streaming segment, long a drag on profitability, turned a corner this quarter. The Direct-to-Consumer (DTC) unit, which includes Disney+, posted operating income of $336 million—up sharply from $47 million a year ago. Disney+ added 2.5 million subscribers globally, surpassing analyst expectations, and lifted its average revenue per user by 3% to $7.77. Upcoming integration with Hulu and ESPN is expected to further enhance engagement and cross-platform monetization.
The Entertainment segment also impressed, with operating income jumping 61% to $1.3 billion, driven by the success of titles like Mufasa: The Lion King and continued strength in home entertainment for Inside Out 2 and Deadpool and Wolverine. Content licensing revenue surged 54% to $2.15 billion, signaling healthy demand despite a less robust release slate expected in the second half of 2025.
Still, risks remain. Slower growth in international parks, macroeconomic headwinds, and continued investment in ESPN’s streaming pivot could pressure margins. But for now, Disney’s performance is rekindling investor confidence.
Conclusion
With a standout quarter, a raised outlook, and a landmark international expansion on the horizon, Disney is positioning itself for a new phase of growth. After years of investor skepticism and underwhelming stock performance, the House of Mouse may finally be ready to reclaim its magic.
Considering a $1,000 investment in these companies?
Our team at Stock Investor carefully curated a list of top stocks with the potential for significant returns, suitable for beginners and seasoned investors alike who are eager to learn a trade and unearth the best stocks to buy. Though not featured in this article, these selected stocks could be game-changers in the future.For those seeking dynamic trading experiences, consider joining our Swing Trade Alerts, Option Income Alert, or our Trading Room. Take advantage of our special offer today, starting at just $1 in the first month.
Unlock the secrets of Smart Money
Explore how billionaires and institutions are influencing the market. Follow their every move with DarkOption Flow and stay updated on essential market insights. Begin your journey to informed investing today!
Education
And if you're a fan of Invest opedia, you'll appreciate what we offer at SharperTrades even more. Explore our comprehensive option trading course and technical trading course, where you can learn trading, analyze stocks, delve into chart patterns for stocks, and gain invaluable insights for making the best company investments.
Unlock Your Stock Market Edge with SharperTrades. Dive into powerful trading tools, learn a trade, and receive expert guidance. Stay up-to-date with regular market updates. Learn trading, basics of investing, and how to pick the best stocks to buy. Whether you're a beginner or seasoned investor and trader, we've got you covered. Get started for free, today!