Disney Stock Is Surging Wednesday: Here's Why

Shares of Walt Disney Co. DIS are trading higher Wednesday following better-than-expected second-quarter financial results and the announcement of a new international theme park project in Abu Dhabi.

What To Know: Q2 revenue came in at $23.62 billion, up 7% year-over-year and ahead of analyst estimates of $23.14 billion. Adjusted earnings per share reached $1.45, beating the expected $1.20. Operating income across segments rose 15% to $4.44 billion, with significant contributions from the Entertainment and Experiences divisions.

The Details: Disney’s streaming platforms also saw continued growth. The company ended the quarter with 180.7 million combined Disney+ and Hulu subscribers, adding 2.5 million since the previous quarter. Disney+ alone had 126 million paid users, a rise of 1.4 million.

Segment breakdown shows Entertainment revenue rose 9% to $10.68 billion, Sports revenue rose 5% to $4.53 billion, and Experiences revenue climbed 6% to $8.89 billion.

Upbeat Outlook: Despite modest losses tied to exiting the Venu joint venture and challenges in Linear Networks, Disney reaffirmed strong guidance. The company expects full-year adjusted EPS of $5.75, up 16% from fiscal 2024, with double-digit growth in its Entertainment division, 13% growth in Sports and 6–8% growth in Experiences. It also plans $3 billion in share buybacks for the year.

CEO Bob Iger called the quarter's results "outstanding," citing momentum in streaming, parks and content pipelines, while noting upcoming projects such as ESPN's direct-to-consumer platform and Disney Cruise Line expansions. He acknowledged that tariffs and macroeconomic headwinds could affect long-term operations but maintained an optimistic tone on the company’s outlook for the remainder of the fiscal year.

Abu Dhabi Theme Park Plans: The company also announced that it will build its seventh theme park resort on Yas Island in Abu Dhabi, in partnership with Miral, a major developer of entertainment destinations in the region. While an opening date has not been announced, Disney described the upcoming resort as its most advanced and interactive park yet, aimed at tapping into the Middle East’s growing tourism sector.

DIS Price Action: Disney shares were up 10.3% at $101.69 at the time of writing, according to Benzinga Pro.

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