Disney achieved robust profits and revenue in the second quarter, propelled by the flourishing performance of its domestic theme parks and the acquisition of over a million new subscribers for its streaming service.

The company also significantly raised its projected profits for the year, resulting in an 11% surge in shares on Wednesday.

Disney further disclosed plans for the construction of a seventh theme park in Abu Dhabi.

During the three-month period concluding on March 30, Disney generated a profit of $3.28 billion, equivalent to $1.81 per share. In contrast, the company, headquartered in Burbank, California, incurred a loss of $20 million, or a cent per share, the previous year.

Excluding exceptional gains or costs, earnings reached $1.45 per share, comfortably exceeding the $1.18 anticipated by Wall Street analysts, according to a survey conducted by Zacks Investment Research.

Revenue experienced a 7% increase, reaching $23.62 billion, and also surpassed the projected figures.

Income for Disney Entertainment, which incorporates the company’s film production facilities and streaming platform, rose by 9%, while earnings for the Experiences department, its theme parks, saw a 6% increase.

Recent successful films encompass “Moana 2” and “Mufasa: The Lion King.” Their newest release, “Thunderbolts,” presently holds the leading position at the box office. CEO Bob Iger and Chief Financial Officer Hugh Johnston conveyed in their statements that they maintain confidence in the array of movies planned for this year, featuring titles such as “Lilo & Stitch,” “The Fantastic Four: First Steps,” and “Avatar: Fire and Ash.”

Nevertheless, Disney could encounter repercussions stemming from the trade conflict initiated by President Donald Trump. Other American corporations have reported negative reactions from consumers in international markets, and on Monday, Trump escalated his tariff dispute, focusing on films produced outside the United States.

Presently, Disney's streaming operations are expanding, with their direct-to-consumer division, comprising Disney+ and Hulu, reporting a quarterly operating profit of $336 million, a substantial increase from $47 million in the corresponding period the previous year, while revenue saw an 8% rise.

Disney+ experienced a two percent growth in domestic paid subscribers across the U.S. and Canada, coupled with a one percent rise internationally, excluding Disney+ HotStar.

Disney+ saw a marginal increase of 1% in total paid subscribers during the quarter, reaching an unexpected 126 million, up from 124.6 million in the preceding quarter, contradicting The Walt Disney Co.'s prior forecast of a slight decrease in Disney+ subscribers compared to the initial three months of the year.

The combined subscriber count for Disney+ and Hulu reached 180.7 million, signifying an increase of 2.5 million since the preceding quarter.

Mike Proulx, a vice president and research director at Forrester, said that a good mix of content helped Disney have a better quarter than they expected, and their streaming business is becoming more profitable. He also suggested that Disney thinking about investing in local international content could mean they are trying to compete more directly with Netflix, which is known for its strong international shows and movies.

Disney has reaped significant benefits from its box office triumphs, as these successful productions subsequently furnish content for its expanding streaming service.

Since its debut on Disney+ on March 12th, “Moana 2” has been streamed for over 139 million hours, establishing it as the most significant premiere from Walt Disney Animation Studios on the platform subsequent to “Encanto,” according to Iger and Johnston. The initial “Moana” production retains its position as the most frequently viewed film on Disney+, accumulating in excess of 1.4 billion streaming hours.

The Experiences division, encompassing Disney's six global theme parks, cruise line, and the licensing of merchandise and video games, reported a 9% increase in operating income, reaching $2.5 billion. Domestic parks witnessed a 13% surge in operating income, while international parks and the broader Experiences segment experienced a 23% decline, primarily attributable to underperformance at their Shanghai and Hong Kong theme parks.

While Disney keeps managing all the different parts of its big business 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.

While Disney established a succession planning committee in 2023, the rigorous search commenced last year when the company tasked Morgan Stanley Executive Chairman James Gorman with spearheading the initiative.

Disney still has some leeway, as Iger agreed to a contract extension that retains him at the company until the close of 2026.

Disney is considering both internal and external applicants, with prominent internal contenders reportedly encompassing Jimmy Pitaro, chairman of ESPN; Josh D’Amaro, chairperson of Walt Disney Parks and Resorts; and Alan Bergman and Dana Walden, co-chairmen of Disney Entertainment.

Disney anticipates full-year adjusted earnings of $5.75 per share, surpassing the $5.43 per share sought by analysts surveyed by FactSet. The company's prior forecast indicated high-single digit adjusted earnings per share growth for fiscal 2025.