The Walt Disney Company delivered a strong performance in the second quarter of fiscal 2025, ending March 29. Total revenue rose to $23.6 billion, a 7% increase compared to $22.1 billion in the same quarter last year. This growth was driven by improved performance across multiple segments, especially entertainment and experiences.
Net Income had a significant turnaround, with a $3.3 billion improvement year-over-year. This signaled a strong financial recovery and operational efficiency across the board.
Moving on to the question, is the top entertainment provider’s sustainability game equally on point as its revenue? Let’s analyse and find out the answer.
Walt Disney’s Q2 2025 Segment Performance
Segment operating income climbed to $4.4 billion, up 15% from Q2 2024. Diluted earnings per share (EPS) reached $1.81, a sharp turnaround from the $0.01 loss reported last year. Adjusted EPS rose 20% to $1.45, surpassing analyst estimates of $1.20.
- Entertainment: Strong growth, driven by streaming and content sales. Direct-to-consumer (DTC) operating income rose sharply to $336 million from $47 million a year ago.
- Experiences (Parks, Resorts, Cruises): Revenue grew 6% to $8.9 billion, with operating income up 9% to $2.5 billion.
- Streaming: Disney+ added 1.4 million subscribers, reversing previous quarter losses, reaching 126 million total subscribers. Hulu SVOD grew by 1.3 million, totaling 54.7 million subscribers.
Strategic Developments
- Theme Parks: Disney announced its seventh theme park and resort, to be built in Abu Dhabi in partnership with Miral, marking a major international expansion.
- Streaming Partnerships: Collaboration with Whale TV to expand digital content offerings, supporting growth in Disney+, ESPN, and Hulu.
- ESPN: Continued investments, with a new direct-to-consumer offering planned for later in the year
Market Reaction
- Disney’s strong Q2 2025 results led to a 9–10% surge in its stock price, reflecting renewed investor confidence.
Robert A. Iger, Chief Executive Officer, The Walt Disney Company, noted,
“Our outstanding performance this quarter—with adjusted EPS(1) up 20% from the prior year driven by our Entertainment and Experiences businesses—underscores our continued success building for growth and executing across our strategic priorities. Following an excellent first half of the fiscal year, we have a lot more to look forward to, including our upcoming theatrical slate, the launch of ESPN’s new DTC offering, and an unprecedented number of expansion projects underway in our Experiences segment. Overall, we remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year.”
Disney Targets Net-Zero Emissions by 2030
Since 2009, The Walt Disney Company has aimed to achieve net-zero greenhouse gas (GHG) emissions from its direct operations. Now, it is pushing further by aligning its climate targets with the Paris Agreement and the Intergovernmental Panel on Climate Change (IPCC).
In 2023, the Science-Based Targets initiative (SBTi) officially validated Disney’s updated emissions goals. These include new quantitative, time-bound targets for both direct (Scope 1 & 2) and value chain (Scope 3) emissions.
Where Disney’s Emissions Come From
- Scope 1 & 2: Direct emissions mostly arise from energy use in theme parks, resorts, corporate offices, and fuel used by Disney Cruise Line.
- Scope 3: Indirect emissions span across the supply chain—from consumer product manufacturing and food services to film and TV production.
2030 Climate Commitments
Disney’s climate action plan is built on strong, measurable goals:
- Cut absolute Scope 1 and 2 emissions by 46.2% by 2030, compared to 2019 levels
- Reach net-zero direct emissions by 2030
- Use 100% zero-carbon electricity across global operations by 2030
- Invest in certified natural climate solutions
- Drive Scope 3 reductions by engaging suppliers, licensees, and partners
Disney’s 4-Step Strategy to Reduce Scope 1 & 2 Emissions
The figure displayed below shows that Disney’s total emissions (Scope 1 + Scope 2) in 2023 were 1.72 million metric tons CO₂e. This means emissions were significantly more than its 2022 data.
Thus, to meet its 2030 net-zero goal for direct operations, Disney is following a data-driven emissions reduction hierarchy:
- Designing low-emission infrastructure: Prioritize energy-efficient, sustainable design in new builds and renovations.
- Boosting efficiency: Improve energy and fuel efficiency across all facilities and fleets.
- Switching to low-carbon energy: Replace high-emission energy sources with renewables and cleaner fuels.
- Nature-based solutions: Invest in certified natural climate solutions to balance remaining emissions.
Cutting Scope 3 Emissions Across Its Value Chain
Disney is taking bold steps to reduce Scope 3 emissions. After reviewing over 100 strategies, the company picked the most impactful and cost-effective ones. These actions focus on the following:
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Low-Carbon Products: Using low-emission materials and improving production methods to cut carbon emissions. Supporting suppliers in shifting to renewable energy and cleaner technologies.
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Supplier & Licensee Action: Helping partners set science-based climate goals and collaborating across industries to drive broader emission cuts.
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Sustainable Media Production: Adopting eco-friendly practices in TV and film projects while reducing emissions across studio operations.
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Clean Tech & Collaboration: Investing in low-carbon innovations and working with suppliers and peers to scale impact across sectors.
By acting across its supply chain, Disney is working to meet its climate targets and lead sustainable change in the entertainment industry.
Push for 100% Zero-Carbon Electricity by 2030
Disney plans to power all its direct operations with 100% zero-carbon electricity by 2030. Most of its electricity use happens at its global theme parks and resorts and major campuses in cities like Los Angeles, New York, and Bristol.
Since each location has unique energy challenges, the company is using a smart, step-by-step plan to reach its clean energy goals.
Powering Up With Clean Energy
On-Site Solar Projects
It’s giving priority to sites where clean energy can be used directly, such as at its theme parks. For example, in 2023, Shanghai Disney Resort added 1.3 megawatts of solar panels, while Hong Kong Disneyland became the city’s largest solar site.
Green Power From Utilities
In places where on-site generation isn’t enough, Disney is teaming up with utility companies to buy clean energy directly. This includes using green power programs or working with regulators to develop fair renewable energy pricing for all customers.
Power Purchase Agreements (PPAs)
Disney will also sign agreements with renewable energy projects to buy electricity, either directly or virtually. These deals help bring more clean energy to the grid and offer flexibility when on-site options aren’t available.
Energy Certificates
As a backup, the company plans to buy high-quality Energy Attribute Certificates (EACs) to match any remaining electricity use with clean energy. This ensures every unit of power is carbon-free.
By combining these four strategies, Disney aims to ensure all its electricity comes from zero-carbon sources, directly or through verified offsets.
Disney Leads the Way in Low-Carbon Fuels
Disney is also exploring low-carbon fuels to reduce emissions, especially from its cruise ships and transportation fleets at parks.
- Focus on Cruise Ships: While Disney Cruise Line is smaller than others in the industry, the company is working hard to drive innovation. It’s investing in research and testing new low-carbon fuels that reduce environmental impact.
- Supporting Clean Fuel Development: Disney is backing new technologies and helping build the supply chain for cleaner fuels. It’s also partnering with suppliers and industry peers to speed up the shift to sustainable shipping.
Sets Ambitious Sustainability Standards
Disney targets zero waste to landfill at all owned parks, resorts, and cruise lines by 2030. It plans to eliminate single-use plastics on cruise ships by 2025 and reduce them elsewhere. The company will use sustainable seafood, recycled materials, and eco-friendly packaging for branded products.
Additionally, all new projects will aim for near net zero, use water efficiently, and divert 90% of construction waste in the US and Europe by 2030.
Disney’s Q2 2025 results show solid growth in revenue, profit, and streaming performance, driven by smart expansion moves and a strong outlook for the rest of the year. While its sustainability and emissions strategies are in place, rising emissions signal a need for stronger climate action and improved management.
