The Walt Disney Company (DIS) Q2 2026 earnings summary

Executive summary

• Revenues for Q2 fiscal 2026 rose 7% year-over-year to $25.2 billion, driven by growth in services, products, and contributions from Fubo and NFL transactions.

• Net income attributable to shareholders declined 31% to $2.25 billion, primarily due to the absence of a prior-year tax benefit and higher restructuring and impairment charges.

• Adjusted EPS increased 8% to $1.57, while reported diluted EPS fell 30% to $1.27 due to non-recurring items and higher noncontrolling interests.

• New CEO emphasized disciplined execution of strategic priorities: creative storytelling, streaming innovation, live sports, and growth in Experiences.

• Company is leveraging its unique position across digital and physical environments to deepen consumer engagement and drive value from intellectual property.

Financial highlights

• Q2 revenue grew 7% year-over-year to $25.2 billion; total segment operating income increased 4% to $4.6 billion, both exceeding guidance.

• Entertainment SVOD revenue grew 13% to $5.5 billion, with operating income up 88% to $582 million and margin exceeding 10%.

• Experiences revenue increased 7% to $9.5 billion, with operating income up 5% to $2.62 billion, led by growth at domestic parks and cruise lines.

• Domestic parks attendance declined 1% in Q2, but global guest demand (including cruise) grew over 2%.

• Operating cash flow for the six months was $7.6 billion, down from $10.0 billion in the prior year, due to higher tax payments and increased content spending.

Outlook and guidance

• Fiscal 2026 adjusted EPS growth guidance: 12% (excluding 53rd week), 16% (including 53rd week), and double-digit growth for fiscal 2027.

• Q3 total segment operating income projected at ~$5.3 billion.

• Content spend for fiscal 2026 expected at $24 billion, up from $23 billion in 2025.

• Capital expenditures for fiscal 2026 projected at $9 billion, primarily for theme park and resort expansion.

• At least $8 billion in share repurchases targeted for fiscal 2026.