Industry

The Walt Disney Company reported strong second-quarter fiscal 2026 results, with revenues rising 7% year-over-year to $25.2 billion and adjusted earnings per share increasing to $1.57 from $1.45. Disney said its performance modestly exceeded guidance, driven mainly by stronger-than-expected revenue growth.

Streaming remained one of the company’s biggest success stories. Entertainment SVOD revenue grew 13%, while streaming operating income jumped 88% to $582 million, marking Disney’s first double-digit SVOD operating margin. The company credited subscriber growth, higher pricing, international expansion, and continued improvements to the Disney+ user experience.

Disney also highlighted the strength of its franchise ecosystem. Zootopia 2 generated $1.9 billion at the global box office and pushed the franchise past one billion streaming hours on Disney+. Upcoming releases include The Mandalorian & Grogu, Toy Story 5, and the live-action Moana.

In sports, ESPN continued its push toward a direct-to-consumer future. Although Sports operating income declined 5% due to higher rights costs, Disney emphasized strong engagement and the growing importance of ESPN Unlimited. The company also completed its NFL transaction, acquiring NFL Network assets in exchange for a 10% ESPN stake granted to NFL Enterprises.

Disney Experiences once again delivered record results, with revenue up 7% to $9.5 billion. Growth was fueled by higher guest spending, cruise expansion, and the launch of the Disney Adventure ship in Singapore, alongside the opening of the World of Frozen attraction at Disneyland Paris.

The company also confirmed that it would not proceed with a planned investment in OpenAI’s Sora following the platform’s shutdown, though Disney said it remains interested in future AI partnerships.

Overall, Disney’s Q2 results reinforced the company’s long-term strategy focused on streaming profitability, franchise-driven growth, sports streaming, and global expansion across experiences and gaming.