Disney’s Q2 results aligned with Wall Street’s revenue expectations, but the market reacted negatively as investors weighed margin pressures and shifting business dynamics. Management highlighted the impact of cost inflation and ongoing investment in content and technology. CEO Bob Iger attributed the quarter’s performance to the success of new film franchises and continued momentum in the Parks and Experiences segment, but also acknowledged that operating margins faced headwinds from higher expenses and evolving consumer behavior.

Is now the time to buy DIS? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Disney’s Q2 Earnings Call

• Benjamin Daniel Swinburne (Morgan Stanley): Asked about the strategic and financial implications of the NFL partnership for ESPN. CEO Bob Iger emphasized increased NFL game windows and new app features, while CFO Hugh Johnston confirmed the deal is expected to be accretive in its first year.
• Robert S. Fishman (MoffettNathanson): Queried how merging Hulu into Disney+ would affect DTC growth and ad revenue. Iger said the move will create a better consumer experience, reduce churn, and enhance bundling and advertising opportunities; Johnston did not update DTC margin guidance.
• Michael C. Morris (Guggenheim): Inquired about operating income growth in the Experiences segment and expectations for ESPN’s app engagement. Johnston highlighted strong cruise and domestic park booking trends, while Iger stressed reaching sports fans across platforms.
• Jessica Jean Reif Ehrlich Cohen (Bank of America): Sought clarity on the impact of the new cruise ship in Singapore and content trends. Iger called the ship a “floating ambassador” for the Disney brand in Asia; Johnston noted strong initial bookings and acknowledged tough film release comparisons ahead.
• Peter Lawler Supino (Wolfe Research): Asked about DTC engagement trends and the prospect of further content investment. Iger described rising engagement due to integration and technology improvements, while Johnston suggested future spend would target select international markets.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will monitor (1) the rollout and subscriber response to the unified Disney+ and Hulu app, (2) the launch impact and engagement trends from ESPN’s direct-to-consumer offering and expanded NFL content, and (3) the performance of new cruise ships and park expansions in global markets. The evolution of advertising revenue and international streaming adoption will also be key indicators of strategic execution.

Disney currently trades at $113.83, down from $118.41 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

Our Favorite Stocks Right Now

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.