Disney Profits Surge in Q2 2025 Driven by Theme Parks and Cruise Line

Disney’s Experiences Segment Drives Q2 Profit Surge, Reaching $2.5 Billion

The Walt Disney Company’s second-quarter earnings report for fiscal year 2025 revealed a significant boost in profits, largely driven by the robust performance of its Experiences segment. This division, encompassing the theme parks, Disney Cruise Line, and consumer products, saw its operating income reach $2.5 billion.

Overall, the company reported a 7% increase in total revenue for the quarter, amounting to $23.6 billion. The segment operating income experienced an even stronger surge, climbing 15% to $4.4 billion.

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Experiences Segment Highlights

The Experiences segment stood out with an operating income of $2.5 billion in Q2, marking a $200 million increase compared to the same period in the previous year. Notably, the Domestic Parks and Experiences saw a 13% rise in operating income, reaching $1.8 billion.

Several factors contributed to this growth, including higher attendance at the theme parks, increased spending by guests, and the expansion of Disney Cruise Line’s capacity with the recent launch of the Disney Treasure. Improved performance from Disney Vacation Club also played a role.

However, the report also indicated a rise in expenses within the Experiences segment, attributed to fleet expansion and pre-opening costs associated with upcoming ships. Approximately $35 million in pre-opening expenses were recorded during the quarter, primarily linked to the Disney Destiny and Disney Adventure, both anticipated to enter service later in the fiscal year.

Conversely, the International Parks and Experiences experienced a 23% decline in operating income, with performance at Shanghai Disney Resort and Hong Kong Disneyland being softer, aligning with broader economic concerns in China.

The Consumer Products division demonstrated strong growth, posting a 14% increase in operating income, mainly due to higher licensing revenue.

Future Outlook

Looking ahead, Disney remains optimistic about its Experiences segment, stating that bookings for the second half of the fiscal year at Walt Disney World are “solidly above prior year.” The company maintains its expectation of 6% to 8% operating income growth for the full fiscal year in this division.

CEO’s Perspective

Robert A. Iger, Chief Executive Officer of The Walt Disney Company, commented on the results, stating, “Our outstanding performance this quarter—with adjusted EPS up 20% from the prior year driven by our Entertainment and Experiences businesses—underscores our continued success building for growth and executing across our strategic priorities. Following an excellent first half of the fiscal year, we have a lot more to look forward to, including our upcoming theatrical slate, the launch of ESPN’s new DTC offering, and an unprecedented number of expansion projects underway in our Experiences segment. Overall, we remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year.”

Company-Wide Financial Performance

The company’s net income before taxes increased significantly to $3.1 billion, up from $0.7 billion in Q2 of the previous year. Diluted earnings per share rose to $1.81, compared to a $0.01 loss in the same period last year. Adjusted EPS also saw substantial growth, climbing 20% to $1.45.

Segment Performance Overview

Linear Networks: Operating income experienced a modest 2% year-over-year growth.

Entertainment: Operating income increased by $0.5 billion to $1.3 billion.

Direct-to-Consumer: Operating income rose by $289 million to $336 million, with Disney+ and Hulu subscriptions reaching a combined 180.7 million, a 2.5 million increase from Q1.

Sports: Operating income decreased by $91 million to $687 million, impacted by higher programming costs and a write-off related to the Venu joint venture. However, ESPN domestic revenue saw a 7% increase, and sports advertising revenue jumped by 29%.

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