Walt Disney Co. (NYSE:DIS) shares rose Wednesday after the company reported fiscal second-quarter 2026 results that topped Wall Street expectations, driven by growth across its entertainment, sports and experiences businesses.
Disney Q2 Earnings Beat Wall Street Estimates
Disney reported adjusted earnings of $1.57 per share for the quarter, beating the analyst consensus estimate of $1.49. Revenue increased 7% year over year to $25.17 billion, ahead of analyst estimates of $24.76 billion.
Entertainment, ESPN And Parks Drive Segment Growth
The entertainment segment, which includes traditional television networks, direct-to-consumer streaming and film operations, posted revenue of $11.72 billion, up 10% from a year earlier.
The sports segment, led by ESPN, reported revenue growth of 2% to $4.61 billion.
Disney’s experiences segment, which includes theme parks, resorts and consumer products, generated revenue of $9.49 billion, up 7% year over year.
Operating Income, Cash Flow And Buyback Update
Consolidated operating income rose 4% to $4.60 billion during the quarter. The experiences business led segment operating income with $2.62 billion, followed by entertainment at $1.34 billion and sports at $652 million.
Operating cash flow increased 2.38% year over year to $6.91 billion, while free cash flow totaled $4.94 billion for the quarter.
Domestic parks and resorts revenue climbed 6% to $6.92 billion, while international parks revenue rose 11% to $1.6 billion.
Disney also raised its fiscal 2026 share repurchase target to $8 billion from its prior forecast of $7 billion.
Streaming, ESPN And Experiences Support Growth Outlook
The company said it expects growth to accelerate in the second half of fiscal 2026, supported by higher streaming investments, ESPN’s direct-to-consumer strategy and continued expansion within Disney Experiences.
Disney said second-quarter segment operating income modestly exceeded guidance, primarily because revenue growth outpaced expectations.
The company outlined several long-term growth initiatives, including investments in major intellectual property franchises, international expansion and technology-driven monetization efforts.
Disney+ Engagement And Sports Partnerships In Focus
Disney highlighted growth drivers including stronger Disney+ engagement, local original programming outside the United States, upcoming franchise film releases, ESPN content agreements, its NFL transaction, expanded MLB relationships, CW Sports on ESPN and DraftKings account integration.
The company also pointed to future growth opportunities within Disney Experiences, including Disney Adventure, World of Frozen, a planned Japan cruise ship and a new Abu Dhabi theme park resort. Disney additionally cited its partnership with Epic Games, artificial intelligence opportunities, marketing efficiencies and margin expansion as potential long-term value drivers.
Fiscal 2026 And 2027 Guidance
For fiscal 2026, Disney expects adjusted earnings per share growth of about 12%, excluding the impact of the 53rd week. Including the additional week, the company projects adjusted EPS growth of about 16%.
Disney expects total segment operating income to reach approximately $5.3 billion in the third quarter. The company said demand across its domestic parks and resorts remains strong, though it continues to monitor macroeconomic uncertainty affecting consumers.
For fiscal 2027, Disney reiterated expectations for double-digit adjusted EPS growth, excluding the impact of the 53rd week.
DIS Price Action: Walt Disney shares were up 4.35% at $104.85 during premarket trading on Wednesday, according to Benzinga Pro data.
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