The Walt Disney Company stock closed last night at $92.17 a share before reporting their earnings for the second quarter (Q2) of fiscal year 2025 which ended on March 29, 2025. According to the earnings report, revenues increased 7% for Q2 to $23.6 billion from $22.1 billion in Q2 fiscal 2024, income before income taxes increased $2.4 billion for Q2 to $3.1 billion from $0.7 billion in Q2 fiscal 2024, total segment operating income increased 15% for Q2 to $4.4 billion from $3.8 billion in Q2 fiscal 2024, diluted earnings per share (EPS) for Q2 improved to $1.81 from a loss per share of $0.01 in Q2 fiscal 2024, and adjusted EPS increased 20% for Q2 to $1.45 from $1.21 in Q2 fiscal 2024.

“Our outstanding performance this quarter—with adjusted EPS⁽¹⁾ 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,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “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.”

At Experiences, Domestic parks and experiences’ operating results for the second quarter at the domestic parks and experiences increased compared to the prior-year quarter. Experiences saw revenue in Q2 up 6% and operating income up 9%. Experience’s operating income was $2.5 billion, an increase of $0.2 billion versus Q2 fiscal 2024. Domestic Parks & Experiences operating income grew 13% to $1.8 billion while Consumer Products operating income grew 14% to $0.4 billion.

Strong Q2 Experiences results reflect the investments the company is making to drive long-term segment growth through a robust slate of strategic investments and expansion projects. Experiences operating income grew 9% compared to the prior-year quarter, driven by higher Domestic Parks and Experiences results.

Operating income at Domestic Parks & Experiences grew 13% compared to the prior-year quarter driven by growth at Disney’s domestic parks, and, to a lesser extent, growth at Disney Vacation Club and Disney Cruise Line. Results reflect an increase in passenger cruise days due to the launch of the Disney Treasure, higher theme park attendance, and an increase in guest spending, partially offset by higher costs reflecting the expansion of our Disney Cruise Line fleet. Results included approximately $35 million of pre-opening expenses driven primarily by the Disney Destiny and Disney Adventure, which will launch in late 2025. Disney expects full-year fiscal 2025 pre-opening expenses for Disney Cruise Line of approximately $200 million, with $40 million in Q3 and $50 million in Q4.

International Parks & Experiences operating income declined 23% in Q2 compared to the prior-year quarter driven by lower results at Shanghai Disney Resort and Hong Kong Disneyland Resort reflecting the softness we are continuing to see in China.

Consumer Products operating income increased 14% in Q2 versus the prior-year quarter, driven by higher licensing revenue. 

The decrease in operating income at the company’s international parks and experiences was attributable to Shanghai Disney Resort and Hong Kong Disneyland Resort due to lower theme park attendance and increased costs.

Capital expenditures for The Walt Disney Company for investments in parks, resorts and other property increased to $4.3 billion from $2.6 billion due to higher spend on cruise ship fleet expansion at the Experiences segment.

Looking to the remainder of the fiscal year, The Walt Disney Company is closely monitoring the macroeconomic environment, however based on what they are currently seeing – including second half bookings at Walt Disney World, which remain solidly above prior year – Disney still expects operating income growth for fiscal 2025 of 6% to 8% compared to the prior year.

There were no additional details regarding Disney Cruise Line in the press release. We will update this post if we hear anything during the earnings call and Q&A.

For more information and an overall report click over to the Q2-2025 Earnings Report.