Disney Beats Estimates, Shares Rise 7% on Streaming, Parks
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- Disney reported $25.17 billion in fiscal Q2 revenue (ended March 28), beating the $24.78 billion Wall Street estimate; adjusted EPS of $1.57 topped the $1.49 expected, though net income fell to $2.47 billion from $3.4 billion a year earlier.
- Disney's experiences segment posted nearly $9.5 billion, up 7% year-over-year, with global attendance up 2% but domestic visitation down 1% as international guest traffic softened.
- Shares of Disney rose roughly 7% after the results, which marked the first earnings report under new CEO Josh D'Amaro, who succeeded Bob Iger in March after Iger's roughly 20-year tenure.
- Disney's entertainment segment revenue climbed 10% to $11.72 billion, with subscription and affiliate fees jumping 14% to $7.8 billion on streaming price hikes; ESPN's direct-to-consumer app generated digital revenue that 'more than offset' declines in the traditional TV ecosystem.
- CFO Hugh Johnston said Disney has seen no evidence of consumer pullback from rising fuel prices tied to the Middle East conflict, and called second-half bookings 'quite strong.'
- Disney raised its full-year fiscal 2026 adjusted earnings growth guidance to about 12%, lifted its share repurchase target to at least $8 billion from $7 billion, and projected double-digit adjusted earnings growth for fiscal 2027.
Why it matters: Disney's raised guidance—12% adjusted earnings growth and an $8 billion buyback target—shows management is confident enough in streaming and parks to absorb Middle East-driven fuel costs. The 7% stock jump and new CEO D'Amaro's first quarter set a high bar: he must prove the streaming-and-IP playbook can sustain double-digit growth as linear TV continues declining.
