Disney’s stock surged by nearly 10% after the company reported better-than-expected earnings and unveiled plans to build a theme park in Abu Dhabi, United Arab Emirates.
Earnings Beat: Disney reported adjusted quarterly earnings of $1.45 per share, surpassing Wall Street’s forecast of $1.19. Revenue for the quarter rose 7% year-over-year to $23.6 billion, outpacing analysts’ expectations of $23.1 billion, according to a FactSet poll.
Stock Performance: In afternoon trading, Disney’s shares jumped 9.7%, reaching $101.15, making it the top performer in the Dow Jones Industrial Average, which saw a modest gain of 0.2%, according to Dow Jones Market Data.
Theme Parks Growth: Disney’s theme park segment, labeled “experiences,” saw a 6% increase in revenue, reaching $8.9 billion, beating analyst estimates of $8.7 billion. This strong performance helped reassure investors concerned about the potential impact of tariffs and inflation on consumer spending for luxury items like vacations.
Abu Dhabi Theme Park: Shortly after posting its earnings, Disney announced plans to build its seventh theme park, located on Yas Island in Abu Dhabi. This will be Disney’s first park in the Middle East. Josh D’Amaro, chairman of Disney’s experiences division, called the resort “a new frontier in theme park development,” promising it will be “the most advanced and interactive destination in our portfolio.”
The park will be built and operated by Miral, a UAE-based limited liability corporation, with Disney licensing its intellectual property (IP) to the company and earning royalties based on the park’s revenue. Disney did not disclose a launch date or the size of the park.
Miral has previously developed other family-friendly destinations on Yas Island, collaborating with American and European brands.
Profit Growth in Streaming: Disney’s streaming division, which includes Disney+, added 2.5 million subscribers during the quarter ending March 31. Operating profit for this division soared to $336 million, up from just $47 million in the same period last year.
Outlook: Disney expects adjusted earnings of $5.75 per share for the current fiscal year, which ends in September, slightly above analysts’ forecasts of $5.43. The company did caution that macroeconomic factors could influence its outlook.
Despite the earnings beat, Disney’s stock has declined 8.9% in 2025, underperforming the S&P 500, which has dropped 4.9% over the same period. However, Disney’s rivals, Netflix and Comcast, have had mixed performances, with Netflix up 29% and Comcast down 8.6%.
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