Disney reported impressive second-quarter earnings for fiscal 2025, exceeding Wall Street expectations and announcing ambitious expansion plans for a new theme park in Abu Dhabi. The entertainment giant saw revenues climb 8.3% to $23.9 billion compared to the same period last year, while net income rose 12.6% to $3.2 billion.
Disney’s streaming division finally reached profitability, a major milestone that CEO Bob Iger had promised investors would happen by the end of 2024. Disney+ subscribers increased by 4.2 million during the quarter, bringing the total subscriber count to 153.8 million worldwide. The combined streaming platforms—Disney+, Hulu, and ESPN+—generated $612 million in operating income, a dramatic turnaround from the $387 million loss reported in the same quarter last year.
“Our disciplined approach to content spending and strategic price adjustments has finally put our streaming business on solid financial footing,” said Iger during the earnings call. “This marks a turning point for Disney’s digital future while we continue investing in our traditional strengths.”
The parks and experiences segment remained Disney’s financial powerhouse, with revenue growing 9.7% to $8.5 billion. Higher guest spending and increased attendance at domestic and international parks drove this growth despite concerns about consumer spending pressures. The company reported that per-guest spending increased approximately 6% across its parks globally.
Perhaps the most notable announcement was Disney’s plans for a new theme park in Abu Dhabi. The company signed a memorandum of understanding with Abu Dhabi’s Department of Culture and Tourism to develop what will be Disney’s first theme park in the Middle East. The project, estimated to cost $9 billion, will include a theme park, hotels, and entertainment districts. Construction is expected to begin in early 2026 with a targeted opening date in 2030.
“The Abu Dhabi project represents our commitment to bringing Disney magic to new audiences while creating sustainable growth opportunities,” Iger explained. “The Middle East has long been an untapped market for our experiences division with tremendous potential for long-term value creation.”
The media networks division faced continued challenges from cord-cutting, with linear TV revenue declining 4.3% to $6.8 billion. However, strong advertising performance at ABC and ESPN partially offset these declines. Disney’s sports broadcasting rights, particularly for NFL and NBA games, continued to deliver strong viewership despite the high costs associated with these agreements.
Disney’s studio entertainment segment delivered mixed results. Theatrical releases during the quarter, including the animated feature “Elemental 2” and Marvel’s “Fantastic Four” reboot, performed well at the box office, generating $1.2 billion in global ticket sales. However, increased production costs and marketing expenses limited profit growth in this segment to just 3.2%.
Financial analysts have responded positively to Disney’s results. “Disney has successfully navigated the challenging transition to streaming profitability while maintaining strength in their parks business,” said Maria Sanchez, senior media analyst at Goldman Sachs. “The Abu Dhabi expansion signals confidence in their international growth strategy and ability to export their unique experiential offerings to new markets.”
The company also updated its forward guidance, projecting full-year revenue growth between 7-9% and earnings per share growth of 12-15%. Disney reaffirmed its commitment to returning value to shareholders, announcing a quarterly dividend increase of 5% to $0.42 per share and authorizing an additional $5 billion for share repurchases.
Industry experts note that Disney’s performance comes amid shifting entertainment consumption patterns and increasing competition. “Disney has managed to leverage its unmatched content library and beloved characters across multiple platforms,” explained entertainment industry consultant Rachel Thomas. “Their ability to monetize intellectual property through streaming, theatrical releases, merchandise, and physical experiences gives them unique advantages in today’s fragmented media landscape.”
The Abu Dhabi project faces potential challenges, including regional political considerations, evolving tourism patterns, and climate concerns. However, Disney
