Earnings Report: Walt Disney Stock Surges with Strong Subscriber Growth

Disney (DIS) stock surged over 8% in pre-market trading after reporting strong fiscal Q2 results and a positive full-year earnings outlook. The company saw significant growth in Disney+ and Hulu subscribers, solidifying its position in the streaming market.

In Q2, Disney’s revenues increased by 7% year-over-year to $23.6 billion, with adjusted earnings per share rising to $1.45 from $1.21 in the same period last year. These results surpassed analysts’ expectations of $1.19 EPS and $23.09 billion in revenue.

A standout highlight was the growth in Disney+ subscribers, which added 1.4 million new subscribers, reaching a total of 126 million in Q2. Hulu also saw growth, adding 1.3 million subscribers to reach a total of 50.3 million. The Entertainment segment experienced a 9% increase in revenues, driven by strong streaming growth and content licensing revenue.

After a dip in Q3 2023, Disney’s subscriber growth is steadily increasing again, according to Main Street Data. Additionally, the Experiences segment grew by 6.4% in Q2, fueled by theme park attendance and higher cruise line revenue.

Looking ahead, Disney raised its adjusted EPS forecast for Fiscal 2025 to $5.75, a 16% jump from Fiscal 2024. The company also expects a “modest increase” in Disney+ subscribers in fiscal Q3.

Analysts are optimistic about DIS stock, with a Strong Buy consensus rating based on 12 Buy recommendations. While year-to-date performance shows a decrease of over 17%, the average price target of $124.08 suggests a potential upside of 34.62% from current levels.