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Investing.com - Walt Disney (NYSE:DIS) has reported profit and revenue in its fiscal second quarter that topped estimates, while the entertainment giant annual forecast also beat projections despite lingering concerns over tariff-fueled economic uncertainty.
Shares in Disney -- which have tumbled so far this year, mirroring a broader decline in the benchmark S&P 500 -- jumped by more than 8% in early U.S. trading on Wednesday.
Adjusted earnings per share for the second quarter came in at $1.45, up from $1.21 a year earlier. Analysts had anticipated $1.20, according to Bloomberg consensus forecasts.
Total (EPA:TTEF) segment operating income was $4.44 billion, an uptick of 15%, as Disney’s entertainment division was particularly fueled by solid subscriber growth at its key Disney+ streaming video service.
The increase, along with strength at Disney’s theme parks and experiences division, helped to temper the impact of a drop in its sports business, which was grappling with higher programming and production costs linked to additional college and professional football games.
Revenue, meanwhile, climbed by 7% to $23.62 billion, compared with Wall Street expectations of $23.05 billion.
For the 2025 fiscal year, Disney guided for adjusted per-share profit of $5.75, versus consensus expectations of $5.44. Analysts at BofA said the outlook was "encouraging" considering recent broader economic volatility.
Disney said it was continuing to "monitor macroeconomic developments" for potential impacts on its operations. Speculation has recently swirled around how U.S. President Donald Trump’s punishing tariffs could effect the broader economy and possibly lead consumers to rein in spending on pricier services like video streaming subscriptions or theme park visits.
“We recognize that uncertainty remains regarding the operating environment for the balance of the fiscal year," Disney flagged.
The company added that it repurchased $1 billion in shares in the quarter, keeping it on pace to buy back $3 billion in stock over the year.