Disney Beats Q2 Estimates as Streaming Profits and Parks Lift Results

Disney's core businesses are showing renewed strength. The company reported fiscal second-quarter results that exceeded Wall Street expectations on revenue and adjusted earnings, sending shares up roughly 5% in premarket trading Wednesday. This marked the first earnings release since Josh D'Amaro became chief executive in March, replacing Bob Iger.

Revenue reached $25.17 billion for the quarter ended March 28, up 7% from a year earlier and ahead of the $24.78 billion consensus forecast compiled by LSEG. Adjusted earnings per share totaled $1.57, compared with analyst projections near $1.50. Net income fell to $2.47 billion, or $1.27 per share, from $3.4 billion, or $1.81 per share, in the prior-year period, according to the company's filing. The experiences segment, which includes theme parks and cruises, generated $9.5 billion in revenue, a 7% increase year-over-year. Global attendance rose 2%, though domestic park visitation slipped 1% amid softer international visitor numbers that carried over from the previous quarter. Per-guest spending rose, and the company described domestic demand as healthy despite macroeconomic pressures.

CFO Hugh Johnston told CNBC that the company continues to see a strong consumer. "We have not seen any evidence" of pullback related to fuel prices or other concerns, he said, adding that bookings for the second half of the year are quite strong. The company cited uncertainty tied to geopolitical events, including U.S.-Israel actions affecting oil prices, yet reported no material impact on parks performance.

Entertainment revenue, covering streaming, traditional TV and films, climbed 10% to $11.72 billion. Subscription and affiliate fees rose 14% to $7.8 billion, helped by price increases, while advertising revenue gained 5% on higher streaming impressions. Recent theatrical releases including Avatar: Fire and Ash and Zootopia 2 contributed to results, Disney said. The company has discontinued reporting quarterly streaming subscriber counts and certain linear TV breakdowns, reflecting a shift toward profitability metrics as consumers continue moving away from traditional television.

The sports segment, home to ESPN, posted $4.61 billion in revenue, up 2% year-over-year, driven by higher affiliate fees and the NFL media rights deal. Operating income in the segment declined 5% due to elevated sports rights costs and marketing expenses. The recently launched ESPN direct-to-consumer streaming service helped offset linear TV declines, according to the company.

D'Amaro used the earnings call to outline three long-term priorities: deeper investment in intellectual property, expanding consumer reach, and deploying technology to improve storytelling and monetization. These themes align with recent performance in parks and streaming. For the full fiscal 2026 year, Disney forecast approximately 12% growth in adjusted earnings and raised its share repurchase authorization to at least $8 billion from the prior $7 billion target. It expects fiscal 2027 adjusted earnings to grow in the double digits. Third-quarter segment operating income is projected near $5.3 billion.

The results arrive against a backdrop of industry-wide pressure on linear television and rising content costs. Domestic parks have now seen two consecutive quarters of softer international visitation, yet overall attendance and spending trends point to resilience. Whether these pillars can deliver sustained double-digit earnings growth amid consumer uncertainty remains the central question for investors and industry observers.