Walt Disney Co (The)
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.73%.
Did DIS Beat Earnings? Q2 2026 Results
Walt Disney Co delivered a solid fiscal second quarter for 2026, posting adjusted EPS of $1.57 against a consensus estimate of $1.50, a beat of roughly 4.98%, while revenue climbed 6.5% year over year to $25.17 billion, edging past the $24.85 billion analysts had expected. The clearest engine behind the upside was Disney's Entertainment segment, where streaming profitability took a meaningful step forward; Entertainment SVOD operating income surged 88% to $582 million, pushing the segment to a double-digit operating margin of 10.6% for the quarter. Experiences also contributed, generating record fiscal Q2 revenues of $9.49 billion, up 7%, even as pre-opening costs for new cruise and park projects trimmed margin gains. On the outlook, management raised its fiscal 2026 share repurchase target to at least $8 billion and guided third-quarter total segment operating income to approximately $5.30 billion, with full-year adjusted EPS growth now expected at roughly 16% including the benefit of a 53rd fiscal week, and double-digit growth targeted again in fiscal 2027.
- Entertainment SVOD revenue growth of 13% driven by rate adjustments and subscriber growth
- Entertainment SVOD achieved first double-digit operating margin at 10.6% with operating income up 88%
- Zootopia 2 generated $1.9 billion in global box office and surpassed 1 billion hours streamed
- Experiences delivered record fiscal Q2 revenues and operating income
- Per capita spending at domestic parks up 5% driven by admissions, food and beverage, and merchandise
- Disney Entertainment subscription and affiliate revenues grew 14% with Fubo contributing 5%
- Stronger-than-expected revenue growth was primary driver of outperformance vs. guidance
“At an important moment of change for Disney, we remain focused on executing our long-term growth strategy. Our creative and operational momentum drove strong quarterly results, and we continue to expect growth to accelerate in the second half of the fiscal year.”
Disney CEO, on the earnings call
Forward Guidance & Outlook
Disney expects fiscal 2026 adjusted EPS growth of approximately 12% excluding the 53rd week, or approximately 16% including the 53rd week. The company targets at least $8 billion in share repurchases in fiscal 2026. Q3 total segment operating income is expected to be approximately $5.3 billion. Sports segment operating income is expected to decline approximately 14% year-over-year in Q3 due to higher programming expenses, but grow by a mid-single digit percentage for full fiscal 2026 (excluding the 53rd week). The NFL transaction is expected to be roughly $0.03 dilutive to fiscal 2026 adjusted EPS. Entertainment SVOD is on track to deliver at least 10% operating margin for the full fiscal year 2026. Current demand at domestic parks and resorts is described as healthy, with Q3 domestic attendance expected to show year-over-year improvement compared to Q2. The company continues to expect double-digit adjusted EPS growth in fiscal 2027, excluding the 53rd week impact.
DIS YoY Financials
DIS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.