Disney reported robust profits and revenue in the second quarter, buoyed by the strong performance of its domestic theme parks and the addition of over a million subscribers to its streaming service.

Furthermore, the company raised its projected earnings for the year, which led to an 11% increase in its stock price on Wednesday.

Disney has also unveiled intentions to establish a seventh theme park within Abu Dhabi.

For the quarter ending March 30th, Disney posted earnings of $3.28 billion, equating to $1.81 per share, a significant turnaround from the $20 million loss, or one cent per share, incurred by the Burbank, California-based company during the corresponding period the previous year.

Excluding one-off charges or gains, earnings stood at $1.45 per share, substantially surpassing the $1.18 anticipated by Wall Street, according to a Zacks Investment Research survey.

Revenue experienced a 7% increase, reaching $23.62 billion, surpassing forecasts as well.

Income generated by Disney Entertainment, which encompasses the company's film studios and streaming platforms, rose by 9%, whereas earnings from the Experiences segment, comprising its theme parks, grew by 6%.

Recent cinematic successes feature titles such as “Moana 2” and “Mufasa: The Lion King,” while their newest production, “Thunderbolts,” is presently leading the box office. In their pre-written statements, CEO Bob Iger and Chief Financial Officer Hugh Johnston expressed their assurance regarding this year's roster of films, which encompasses “Lilo & Stitch,” “The Fantastic Four: First Steps,” and “Avatar: Fire and Ash.”

Disney, however, confronts potential repercussions stemming from the trade conflict initiated by President Donald Trump, with other U.S. corporations having observed negative reactions from consumers in international markets; moreover, on Monday, Trump escalated his tariff dispute by targeting foreign-made films.

At present, Disney’s streaming division is experiencing continued expansion, with its direct-to-consumer sector, encompassing platforms such as Disney+ and Hulu, reporting quarterly operating earnings of $336 million, a significant rise from $47 million in the corresponding quarter of the previous year, accompanied by an 8% increase in revenue.

Domestically, encompassing the U.S. and Canada, the Disney+ streaming service experienced a two percent increment in paid subscribers, whilst internationally, excluding Disney+ HotStar, subscriber numbers rose by one percent.

In a surprising turn, total paid subscribers for Disney+ saw a slight increase of 1% during the quarter, reaching 126 million compared to 124.6 million in the preceding quarter, a result contrary to The Walt Disney Co.'s prior expectation of a modest decline in subscribers.

The combined subscriber base for Disney+ and Hulu reached 180.7 million, representing a 2.5 million increase compared to the preceding quarter.

According to Mike Proulx, Forrester vice president and research director, Disney's excellent quarterly performance, surpassing expectations, can be attributed to a superb blend of content, fueling the sustained profitable expansion of their streaming services. He suggests that Disney's apparent interest in funding local international content may indicate a strategic move to directly challenge Netflix, recognized for its extensive global content library.

Disney has reaped a twofold reward from box office triumphs, as these popular productions subsequently furnish material for its expanding streaming platform.

Since its debut on Disney+ on March 12, "Moana 2" has accrued over 139 million streaming hours, establishing it as the most significant Walt Disney Animation Studios' premiere on the service since "Encanto," according to Iger and Johnston. The original "Moana" film continues to hold the title of the most-watched movie on Disney+, having surpassed 1.4 billion streaming hours.

Within the Experiences division, encompassing Disney's six worldwide theme parks, cruise line, merchandise, and videogame licensing operations, there was a reported 9% increase in operating income, reaching $2.5 billion. Domestically, operating income saw a 13% rise in the parks sector. Conversely, international parks and Experiences experienced a 23% decline in operating income, attributed to weaker performance at their Shanghai and Hong Kong theme parks.

Despite its efforts to skillfully navigate its various business units, Disney is still seeking a successor to Iger, who has largely represented the company for the last twenty years.

Disney formed a succession planning committee in 2023, but the intensive search commenced last year when the company appointed Morgan Stanley Executive Chairman James Gorman to spearhead the initiative.

Disney has a certain amount of time at its disposal, as Iger's contract was extended, keeping him at the company until the conclusion of 2026.

Disney is considering both internal and external applicants, with speculation that potential internal contenders encompass prominent figures such as Jimmy Pitaro, chairperson of Disney's ESPN, Josh D’Amaro, chairperson of Walt Disney Parks and Resorts, and Disney Entertainment co-chairpersons Alan Bergman and Dana Walden.

Disney is forecasting full-year adjusted earnings of $5.75 per share, exceeding the $5.43 per share anticipated by analysts surveyed by FactSet. The company had previously indicated high-single digit adjusted earnings per share growth for the fiscal year 2025.