LOS ANGELES, California: Walt Disney Co. posted stronger-than-expected quarterly earnings, buoyed by solid gains in its Disney+ streaming service and resilient performance at its U.S. theme parks despite economic pressures.

The entertainment giant reported adjusted earnings per share of US$1.45 for the January-to-March quarter, surpassing analyst estimates of $1.20. Revenue rose seven percent to $23.6 billion, exceeding forecasts of $23.14 billion.

“Despite questions around any macroeconomic uncertainty or the impact of competition, I’m encouraged by the strength and resilience of our business,” CEO Bob Iger said.

Disney’s parks-led Experiences division, which includes theme parks and cruise ships, saw operating income climb 9 percent to $2.5 billion. CFO Hugh Johnston noted strong demand for cruise bookings and steady park attendance, except in Shanghai and Hong Kong, where weaker results were attributed to the Chinese economy.

The company also announced plans to open a new theme park in Abu Dhabi as part of its ongoing international expansion.

In streaming, Disney+ added 1.4 million subscribers during the quarter, reversing a previous warning of a potential decline. Hulu gained 1.1 million customers, pushing streaming operating income to $336 million, up from $47 million a year ago.

Disney said it is focused on transforming its streaming business into a “true growth business,” with plans to integrate live sports via ESPN, improve personalization technology, and invest in international content.

The entertainment unit, which includes Disney’s film and television segments, posted operating income of $1.3 billion, a 61 percent jump from the prior year. Iger highlighted the strong box office performance of Thunderbolts and upcoming releases such as Pixar’s Elio, Zootopia 2, and Avatar: The Way of Water.

Despite the upbeat earnings report, Disney shares have fallen 17 percent this year, underperforming the S&P 500’s 4.7 percent decline. The stock rose nearly 10 percent in early trading following the announcement of the earnings.

Disney maintained its fiscal 2025 outlook of $5.75 adjusted earnings per share, a 16 percent increase from the prior year, and reiterated guidance for six percent to eight percent operating income growth in its parks division.

“We are feeling confident,” said AJ Bell’s Danni Hewson. “At a time when many companies are pulling back due to tariff concerns and consumer spending fears, Disney is holding firm.”