Walt Disney Co. returned to profitability in its fiscal second quarter, posting net income of US$2.89 billion after a loss a year earlier. Management said revenue exceeded Wall Street’s US$23.14 billion consensus and lifted full-year earnings guidance, crediting strong demand at domestic theme parks and improved results across the company’s streaming platforms. Disney+ added 1.4 million subscribers to reach 126 million, while Hulu gained 1.1 million for a total of 54.7 million. The two services generated a combined operating profit of US$336 million, sharply higher than the US$47 million recorded in the same period of 2024. In the sports division, revenue grew 5% to US$4.5 billion, although operating profit slipped 12% to US$687 million because of a write-off tied to exiting the Venu Sports venture. During its earnings call, the company announced plans for its seventh global resort, a ‘tech-forward’ Disney theme park on Yas Island in Abu Dhabi. The project will be designed by Disney Imagineers but financed and operated by local partner Miral, shielding Disney from construction costs. Chief Executive Officer Bob Iger said the park is unlikely to open before the next decade and will feature interactive attractions and gaming elements. Disney warned that the 145% U.S. tariff on Chinese imports taking effect this year, along with retaliatory measures abroad, could meaningfully raise costs over time, though the near-term impact is expected to be modest. The company also disclosed it will record a roughly US$3.3 billion non-cash tax benefit in the third quarter related to the restructuring of Hulu’s partnership and reiterated that the final equity value for buying out Comcast’s remaining stake should be set by the end of June. Investors welcomed the series of upbeat signals. Disney shares climbed about 6% in early trading, briefly topping their 200-day moving average and logging one of the stock’s best sessions since 2020.