The Walt Disney Company reported robust fiscal second-quarter earnings on Wednesday, surpassing Wall Street forecasts on both revenue and earnings, driven by unexpected subscriber growth in its Disney+ streaming service.

The entertainment giant also raised its full-year guidance, sending shares up approximately 6% in premarket trading.

Disney posted adjusted earnings per share of $1.45, beating analysts’ expectations of $1.20, according to LSEG.

Revenue for the quarter ending March 29 climbed 7% year-over-year to $23.62 billion, exceeding projections of $23.14 billion.

The company now projects full-year adjusted EPS of $5.75, a 16% increase from fiscal 2024, up from its prior high-single-digit growth forecast.

The standout performer was Disney’s direct-to-consumer segment, which includes Disney+, Hulu, and ESPN+. DTC revenue rose 8% to $6.12 billion, fueled by higher subscription prices and a 1.4 million subscriber gain for Disney+.

The flagship streaming service reached 126 million global subscribers, defying Disney’s earlier prediction of a decline and topping StreetAccount’s estimate of 123.35 million.

Disney anticipates modest subscriber growth in the current quarter.

The entertainment segment, encompassing TV networks, streaming, and films, saw a 9% revenue increase to $10.68 billion, boosted by strong performances from 2024 releases like Mufasa: The Lion King and Moana 2.

However, underperforming titles such as Snow White and Captain America: Brave New World tempered results, while linear TV revenue fell 13% to $2.42 billion. Disney’s sports segment, led by ESPN, grew revenue by 5% to $4.53 billion, driven by higher advertising rates from additional College Football Playoff and NFL games.

Disney’s strong performance underscores its strategic focus on streaming and sports, even as challenges persist in its linear TV business