DIS · The Walt Disney Company

Disney's Q2 fiscal 2026 results showed revenue growth of 7% to $25.2 billion, primarily driven by stronger-than-expected performance across all major segments: Entertainment up 10% to $11.7 billion, Experiences up 7% to $9.5 billion, and Sports up 2% to $4.6 billion. Total segment operating income increased 4% to $4.6 billion, with Experiences leading at 5% growth to $2.6 billion, Entertainment up 6% to $1.3 billion, offset by a 5% decline in Sports to $652 million. Management highlighted creative momentum, including Zootopia 2's strong box office and streaming performance, alongside product innovations like Verts on Disney+ boosting engagement. Entertainment SVOD revenue accelerated 13% due to rate adjustments, volume growth, and international wholesale deals. While GAAP diluted EPS declined 30% to $1.27 due to certain items, adjusted EPS rose 8% to $1.57. Guidance remains optimistic with fiscal 2026 adjusted EPS growth of ~12% (excluding 53rd week) or ~16% (including), at least $8 billion in share repurchases, and Q3 segment operating income of ~$5.3 billion. Domestic parks demand is healthy despite macro uncertainty, with expected Q3 attendance improvement. Long-term strategy emphasizes IP investment, streaming enhancements, ESPN DTC evolution, and Experiences expansion like Disney Adventure ship.