The Walt Disney Company (DIS) posted a strong second fiscal quarter for 2025, delivering across the board with sharp year-over-year improvements in revenue, profitability, and cash generation. Total revenue rose 7% to $23.6 billion, while income before income taxes surged to $3.1 billion, a dramatic leap from $0.7 billion a year ago. Net income attributable to Disney hit $3.3 billion, swinging from a small loss in Q2 FY24, and diluted earnings per share climbed to $1.81. On an adjusted basis, EPS grew 20% to $1.45, reflecting broad-based strength in the company’s core businesses.

Segment operating income advanced 15% to $4.4 billion, fueled in large part by the Entertainment and Experiences segments. The company also saw a significant improvement in cash generation, with operating cash flow up 84% to $6.8 billion and free cash flow more than doubling to $4.9 billion.

In the Entertainment division, revenue increased 9% to $10.7 billion and operating income jumped 61% to $1.3 billion, driven by robust gains in direct-to-consumer operations, which posted a $336 million profit, up from a modest loss a year ago. Linear Networks and Content Licensing also contributed positively. Disney+ and Hulu combined added 2.5 million subscribers, bringing the total to 180.7 million, with Disney+ alone reaching 126.0 million. Notably, average monthly revenue per Disney+ subscriber grew 3% to $7.77.

The Sports segment reported $4.5 billion in revenue, up 5%, though operating income dipped to $687 million, largely due to increased programming costs, including additional high-profile college and NFL games, and a write-off tied to the Venu joint venture. However, underlying demand remained strong, as domestic ESPN revenue grew 7% and advertising revenue jumped 29%, benefiting from the expanded College Football Playoff format.

Disney’s Experiences segment remained a pillar of stability and growth, with revenue rising 6% to $8.9 billion and operating income increasing 9% to $2.5 billion. Domestically, parks and experiences saw 13% growth in operating income to $1.8 billion, supported by higher attendance, guest spending, and the successful launch of the Disney Treasure cruise ship. Consumer Products also advanced, with operating income up 14% to $0.4 billion, aided by licensing strength and the Marvel Rivals game. International parks, however, faced challenges due to declines in attendance and rising costs in Shanghai and Hong Kong.

Disney incurred $109 million in restructuring and impairment charges, a stark reduction from $2.1 billion a year ago. Despite a modest uptick in net interest expense to $346 million, the company maintained a solid financial position, returning $1.0 billion to shareholders via repurchases in the quarter, keeping pace toward its $3 billion full-year target.

Looking ahead, Disney expects continued subscriber growth for Disney+ in Q3 and reaffirmed a strong full-year outlook. The company raised its guidance for adjusted EPS to $5.75, representing 16% growth, and expects $17 billion in operating cash flow, up $2 billion from prior guidance. Segment operating income is projected to see double-digit growth in Entertainment, 18% in Sports, and 6–8% in Experiences.

CEO Bob Iger highlighted the quarter’s performance as evidence of successful execution across strategic priorities and expressed confidence in the company’s trajectory. With a robust content slate, expansion in the cruise and theme park businesses, and the upcoming ESPN direct-to-consumer launch, Disney appears well-positioned for continued momentum—though management remains attentive to global economic headwinds.