Disney shines bright as streaming and parks outperform expectations

Disney shines bright as streaming and parks outperform expectations

Jacob Falkencrone

Global Head of Investment Strategy

Key points:

  • Streaming strength: Disney+ subscriber growth and premium pricing validate Disney’s streaming strategy.
  • US parks resilience: Robust performance from domestic parks highlights continued consumer appetite despite economic uncertainty.
  • Cautious optimism: While confident, Disney remains vigilant on macroeconomic risks like tariffs and international headwinds. 


This content is marketing material.

Investors found a bit of pixie dust sprinkled on their portfolios this morning, as Disney’s quarterly results blew past expectations, powered by robust theme parks and a surprise surge in streaming subscribers. Shares surged nearly 7% pre-market, suggesting the entertainment giant has rediscovered its magic touch.

Earnings deliver a blockbuster beat

The entertainment giant smashed market expectations:

  • Adjusted earnings per share (EPS) of USD 1.45, comfortably ahead of analyst estimates of USD 1.20
  • Revenues rose a robust 7% year-over-year to USD 23.62 billion, surpassing forecasts of USD 23.14 billion.

Most eye-catching was Disney’s dramatic bottom-line turnaround: from a modest loss last year to a striking USD 3.28 billion net profit (USD 1.81 per share). Behind this reversal stood impressive subscriber growth in streaming and booming theme park revenues—clear signs of operational strength despite broader macroeconomic caution.

Streaming surprise and parks prowess

Disney+ emerged as the quarter’s standout performer. Contrary to earlier guidance predicting subscriber contraction, Disney gained 1.4 million subscribers to its flagship service, reaching 126 million globally—comfortably surpassing analyst expectations. Pricing power proved key, demonstrating that audiences remain willing to pay premium prices for quality content such as Moana 2 and Mufasa: The Lion King.

Disney’s experiences segment—encompassing parks, resorts, and cruises—also impressed. Revenue rose 6% to USD 8.89 billion, bolstered by strong domestic park attendance and consumer willingness to spend. The debut of the Disney Treasure cruise ship significantly boosted performance, highlighting resilient demand for premium leisure experiences. However, international parks, particularly in Shanghai and Hong Kong, felt headwinds from lower attendance and geopolitical tensions, indicating ongoing vulnerabilities abroad.

Another corner of the Disney kingdom that failed to sparkle was traditional TV, where revenues continued their decline—dropping 13% to USD 2.42 billion. This underscores Disney’s strategic urgency in fully pivoting toward streaming and direct-to-consumer models.

Guidance: stronger outlook, tempered by caution

Disney’s upbeat results came with an equally bullish outlook. The company raised its full-year adjusted EPS guidance to USD 5.75, forecasting an impressive 16% annual growth—double the earlier expectations of high single digits.

CEO Bob Iger emphasised robust movie releases, ambitious park expansions, and a highly anticipated ESPN streaming service launching later this year. These strategic bets underline Disney’s commitment to aggressive investments, even amidst economic caution, solidifying its market leadership.

Still, Iger acknowledged the broader economic uncertainties: "We’re confident but cautious, ambitious yet realistic. We’re closely monitoring global trade tensions and FX volatility, recognising their potential impact."

Headwinds and challenges

Disney faces several headwinds despite its strong performance, particularly internationally. Persistent US-China trade tensions and tariffs threaten to impact attendance at parks and profitability of its studio business. Foreign exchange volatility, especially across European and Asian markets, adds another layer of uncertainty. Additionally, increased competition from Universal’s new Epic Universe theme park opening soon in Orlando could pressure domestic park attendance and margins, while already reduced visitor numbers in Asia highlight ongoing sensitivity to global economic slowdowns. Investors should remain vigilant, as these factors could dampen Disney’s otherwise robust growth outlook.

What investors should watch next

  • Subscriber trajectory: Monitor subscriber retention and churn on Disney+, particularly as prices rise further.
  • Linear TV strategy: Expect more decisive strategic shifts and cost management in legacy TV businesses as Disney accelerates its pivot towards streaming.
  • International parks recovery: Keep an eye on attendance trends in Shanghai and Hong Kong parks for indications of global economic sentiment.
  • ESPN streaming launch: Evaluate market reception to ESPN’s new platform, as it could reshape the landscape for sports streaming.
  • Macro sensitivity: Keep vigilant of trade policies and FX impacts, notably on international revenue streams.

Looking ahead: Disney's next act

Disney’s quarter was impressive not just for its strong numbers, but for what it symbolises: the company’s ability to deliver exceptional performance even amid a stormy economic backdrop. For investors, Disney’s renewed confidence is encouraging. Yet, as every Disney enthusiast knows, the magic is truly in the details—and right now, the details look very promising indeed.

In Bob Iger’s own words, “We’re confident but cautious, ambitious yet realistic—and absolutely committed to creating value for our investors.”

Disney might just be proving it can weather economic turbulence and emerge stronger than ever—a magical prospect for investors hoping the fairy tale continues.

Quarterly Outlook

01 /

  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

  • FX outlook: Tariffs drive USD strength, until...?

    Quarterly Outlook

    FX outlook: Tariffs drive USD strength, until...?

    John J. Hardy

    Global Head of Macro Strategy

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.