Disney Q2 FY2026 Revenue Hits $25.2B, 7% YoY Growth; Streaming Operating Income Surges 88%
Disney reported FY2026 Q2 revenue of $25.2 billion, up 7% year-over-year. Adjusted EPS grew 8% to $1.57. Disney+ and Hulu streaming operating income skyrocketed 88% to $582 million.
- Disney posted Q2 FY2026 revenue of $25.2B (+7% YoY) with adjusted EPS of $1.57 (+8%), driven by streaming profitability that surged 88%
- The stock closed at $100.48, down 0.82% on the day, as management projects continued double-digit growth ahead
Disney reported FY2026 Q2 (ended March 2026) revenue of $25.2 billion in its SEC 8-K filing, reflecting 7% year-over-year growth versus the prior-year period.
📊 Stock Price at Article Time (May 6, 2026, 21:04 KST)
$100.48 ▼ -0.82%
~145,495 KRW (1448 rate)
Q2 Performance at a Glance
Disney exceeded its own guidance on both revenue and operating income this quarter. Streaming and theme parks drove growth. However, GAAP EPS declined 30% to $1.27, reflecting special items.
- Revenue: $25.168 billion, +7% YoY
- Adjusted EPS (excluding special items): $1.57 vs. $1.45 prior year, +8%
- GAAP EPS: $1.27 vs. $1.81 prior year, -30%
- Total segment operating income: $4.603 billion, +4% YoY
- Pre-tax income: $3.367 billion, +9% YoY
- Free cash flow: $4.941 billion, +1% YoY
Forward Guidance
Disney projects FY2026 Q3 total segment operating income of approximately $5.3 billion. For the full year, the company expects adjusted EPS growth of ~12% excluding the 53rd week impact, or ~16% including it. Disney plans to repurchase at least $8 billion in share buybacks during FY2026. The company also projects double-digit adjusted EPS growth to continue into FY2027. Management noted it is monitoring macroeconomic uncertainty facing consumers, though domestic parks and resorts demand remains healthy.
Market Reaction
Disney shares rose in after-hours trading following the earnings announcement. As of May 6, 2026 at 21:04 KST, the stock stood at $100.48, down 0.82% from the prior close. Barron's and The Wall Street Journal reported that new CEO Bob Iger presented a clear growth roadmap, reassuring investors of the company's strategic vision. Investors Business Daily highlighted the surge in streaming profitability as the key driver of the earnings beat.
Segment Performance
- Entertainment (streaming, film, television): Revenue $11.715 billion, +10% YoY / Operating income $1.336 billion, +6% — Disney+ and Hulu streaming operating income reached $582 million, surging 88% YoY
- Sports (ESPN and others): Revenue $4.609 billion, +2% YoY / Operating income $652 million, -5%
- Experiences (theme parks, cruises, consumer products): Revenue $9.487 billion, +7% YoY / Operating income $2.615 billion, +5%
This article was auto-generated from the official SEC 8-K filing and third-party news reports, with the primary objective of rapidly disseminating key data following the announcement. We recommend reviewing the company's official filing before making any trading decisions. Stock price reflects the time of article publication and may differ from current levels.
DISFrequently Asked Questions
What was Disney's biggest achievement this quarter?
Streaming proved to be the standout performer. Combined Disney+ and Hulu streaming operating income reached $582 million, a stunning 88% increase year-over-year. The Experiences segment—covering theme parks, cruises, and consumer products—also delivered strong performance, generating $9.487 billion in revenue with 7% YoY growth.
GAAP EPS fell 30%, so is Disney's performance actually weak?
Not necessarily. GAAP (Generally Accepted Accounting Principles) includes all one-time charges, asset write-downs, and special items. When you exclude these non-recurring items—using 'adjusted EPS'—the metric actually rose 8% to $1.57 versus the prior year. Investors typically examine both figures, but adjusted EPS is often the better measure of underlying operating performance.
What are Disney's forward-looking plans?
Disney projects full-year FY2026 adjusted EPS growth of 12–16% (depending on the 53rd-week impact) and aims for Q3 operating income of approximately $5.3 billion. The company plans to return at least $8 billion to shareholders through share buybacks. Management also guided for continued double-digit adjusted EPS growth in FY2027.
What is share buyback and why is it good for shareholders?
A share buyback occurs when a company repurchases its own stock in the open market. This reduces the total number of shares outstanding, meaning each remaining share represents a proportionally larger ownership stake in the company's earnings and assets. By repurchasing at least $8 billion worth of stock, Disney is effectively returning capital to existing shareholders and enhancing per-share value over time.
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