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 revised its profit forecasts upwards for the current year, resulting in an 11% surge in its share price on Wednesday.

Disney further declared its intention to construct a seventh theme park in Abu Dhabi.

In the quarter concluding on March 30, Disney's profits amounted to $3.28 billion, translating to $1.81 per share; this contrasts with a loss of $20 million, or one cent per share, incurred by the Burbank, California-based corporation in the corresponding period of the previous year.

Excluding exceptional items, earnings reached $1.45 per share, substantially surpassing the $1.18 forecast by Wall Street analysts, as per a survey conducted by Zacks Investment Research.

Revenue climbed 7% to $23.62 billion, exceeding forecasts as well.

Income generated by Disney Entertainment, encompassing the company's film studios and streaming platform, saw a 9% rise, concurrently, revenue from the Experiences segment, covering its theme parks, rose by 6%.

Recently successful films at the box office feature titles such as “Moana 2” and “Mufasa: The Lion King,” while their newest production, “Thunderbolts,” is currently holding the top position in box office rankings. CEO Bob Iger and Chief Financial Officer Hugh Johnston expressed assurance in their prepared statements regarding the upcoming film lineup for this year, which is expected to include “Lilo & Stitch,” “The Fantastic Four: First Steps,” and “Avatar: Fire and Ash.”

However, Disney confronts potential consequences stemming from the trade dispute initiated by President Donald Trump. Other American companies have observed negative reactions from consumers in international markets, and on Monday, Trump launched a new attack in his tariff conflict, aiming at films produced outside the U.S.

Currently, Disney's streaming sector is experiencing continued expansion, with its direct-to-consumer division, encompassing Disney+ and Hulu, achieving quarterly operating profits of $336 million, a substantial increase from the $47 million reported in the corresponding period last year. Furthermore, revenue saw an 8% rise.

Disney+ experienced a 2% growth in its domestic paid subscriber base, encompassing the U.S. and Canada, with a 1% international increase, excluding Disney+ HotStar.

In a surprising turn of events, total paid subscribers for Disney+ saw a marginal increase of 1% in the quarter, reaching 126 million subscribers, up from 124.6 million in the preceding quarter, contrary to The Walt Disney Co.'s earlier forecast of a slight dip in subscribers for the second quarter compared to the year's initial three-month period.

Total subscriptions for Disney+ and Hulu reached 180.7 million, marking an increase of 2.5 million compared to the first quarter.

According to Mike Proulx, Forrester's vice president and research director, a harmonious mix of content contributed to Disney's better-than-anticipated quarterly performance, as the company's streaming segment continues its profitable expansion. He added that Disney's consideration of investing in local international content may indicate a strategic move to directly challenge Netflix, which is recognized for its extensive international offerings.

Disney has gained a dual advantage from its box office triumphs, as these productions are transformed into content for its expanding streaming platform.

According to Iger and Johnston, “Moana 2” has been streamed for over 139 million hours since its Disney+ debut on March 12, positioning it as the most successful Walt Disney Animation Studios' launch on the platform since "Encanto," while the original "Moana" continues to hold the title of the most watched film on Disney+ with over 1.4 billion streamed hours.

Within the Experiences division, encompassing Disney's six theme parks worldwide, its cruise line, and licensing for merchandise and video games, reported operating income saw a 9% increase, reaching $2.5 billion. Operating income at domestic parks ascended by 13%. Conversely, operating income for international parks and Experiences declined by 23%, attributable to weaker performance at its Shanghai and Hong Kong theme parks.

While Disney keeps managing its different business parts well, it is also still looking for someone to take over from Iger, who has been the main person at Disney for most of the last twenty years.

In 2023, Disney established a succession planning committee, but the rigorous search commenced last year when the company engaged Morgan Stanley Executive Chairman James Gorman to spearhead the initiative.

Disney has a degree of latitude, as Iger's contract extension secures his tenure at the company until the close of 2026.

Disney is evaluating potential candidates from both within and outside the company. It is widely speculated that the internal prospects include Jimmy Pitaro, chairman of ESPN (a Disney subsidiary), Josh D’Amaro, chairperson of Walt Disney Parks and Resorts, and Alan Bergman and Dana Walden, co-chairmen of Disney Entertainment.

Disney anticipates adjusted earnings of $5.75 per share for the full fiscal year, surpassing the $5.43 per share projected by analysts surveyed by FactSet; this represents an improvement on the company's prior guidance for high-single digit adjusted earnings per share growth in fiscal 2025.