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Walt Disney Co. (DIS) delivered strong fiscal second-quarter 2025 results, surpassing analyst expectations across key financial metrics. Revenue grew 7% year-over-year to $23.62 billion, exceeding the consensus estimate of $23.14 billion, while operating income rose 15% to $4.44 billion. Adjusted earnings per share (EPS) of $1.45 outperformed the forecast of $1.20, and free cash flow surged to $4.9 billion, more than double the $2.3 billion estimate. The company raised its fiscal 2025 outlook, projecting 16% adjusted EPS growth to $5.75, signaling confidence in its ongoing performance. Analysts highlighted strong contributions from Disney's parks, streaming, and entertainment segments, with the direct-to-consumer (DTC) streaming business achieving its fourth consecutive profitable quarter, generating $336 million in operating income on $6.12 billion in revenue. Subscriber growth in Disney+ Core and Hulu, which added 2.5 million subscribers to reach 180.7 million, along with price increases and Hulu's integration into Disney+, were key drivers of profitability. The Parks and Experiences segment saw a 9% year-over-year increase in operating income, driven by domestic parks and cruise lines, with future bookings for Walt Disney World up 4% for Q3 and 7% for Q4. Disney also announced a new theme park project on Yas Island in Abu Dhabi, expanding its global footprint. The Entertainment division benefited from successful movie releases, including "Moana 2" and "Mufasa: The Lion King," contributing to a 9% year-over-year revenue increase to $10.68 billion. Analysts noted the company's robust film slate and its potential to drive growth across segments. Overall, Disney's strong performance, raised guidance, and strategic initiatives underscore its long-term growth potential, with analysts viewing the results as a positive indicator for sustained success.
Source content provided by Benzinga.
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About DIS

Disney operates in three global business segments: entertainment, sports, and experiences. Entertainment and experiences both benefit from the firm's ownership of iconic franchises and characters. Entertainment includes the ABC broadcast network, ... Read more

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