Disney Reports Strong Q1 Financial Results, Driven by “Moana 2” Success

The Walt Disney Company has announced impressive financial results for the first quarter of fiscal 2025, showcasing a robust recovery in its operations and a significant contribution from its animated feature “Moana 2.”

The company reported revenues of $24.7 billion, marking a 5% increase from the same period last year, and a net income of $2.55 billion, which translates to $1.40 per share, exceeding analysts’ expectations.

Key Financial Highlights

• Revenue Growth: Disney’s revenue reached $24.7 billion, up from $23.5 billion in the same quarter last year.
• Operating Income: Total segment operating income surged by 31% to $5.1 billion.
• Direct-to-Consumer Profitability: The Direct-to-Consumer segment, which includes Disney+, achieved an operating profit of $293 million, marking a notable turnaround in profitability.

Contribution of “Moana 2”

A standout performer in Disney’s lineup, “Moana 2” has significantly bolstered the company’s profits, surpassing the $1 billion mark at the global box office.

This achievement makes it one of Disney’s top three films of 2024 and revitalizes the animation division, which had faced challenges with earlier releases like “Strange World” and “Wish.

“CEO Bob Iger highlighted the importance of “Moana 2,” stating that its performance reflects Disney’s creative and financial strength.

He noted that this quarter demonstrated outstanding box office results from Disney studios, further solidifying the company’s position in the entertainment industry.

Stock Market Response

Following the announcement of these strong financial results, Disney’s stock experienced a modest response.

On February 5, 2025, the stock opened at $113.80 and closed at $113.30, reflecting a slight decrease of 0.614% or $0.70 from the previous closing price of $114.00.

Despite this minor dip, analysts remain optimistic about Disney’s long-term prospects, with many maintaining “buy” ratings on the stock and setting an average price target of approximately $127.27.

Future Outlook

While Disney+ saw a slight decline in subscribers—losing approximately 700,000 users—the company remains focused on its growth strategy and is optimistic about future content releases.

With projections for high-single-digit adjusted EPS growth for fiscal 2025, Disney is well-positioned to continue its recovery and capitalize on successful films like “Moana 2.”

In summary, Disney’s first-quarter results highlight a strong start to fiscal 2025, with “Moana 2” playing a crucial role in driving profits and reinforcing the company’s strategic initiatives across both theatrical releases and streaming services.