Walt Disney (NYSE:DIS) reported second-quarter results that surpassed Wall Street expectations, supported by accelerating growth in its streaming business and continued strength across its theme park operations.
Adjusted earnings per share came in at $1.57, ahead of analyst forecasts of $1.50, while revenue increased 7% year over year to $25.17 billion, topping consensus estimates of $24.85 billion.
Shares climbed 7.4% following the earnings release.
Streaming business posts faster growth
Revenue from Disney’s Entertainment SVOD business grew 13% during the quarter, accelerating from 11% growth recorded in the previous quarter.
The company said the improvement was driven by stronger monetization following pricing adjustments, as well as subscriber gains tied to new international wholesale agreements.
Total operating income for Disney’s segments increased to $4.6 billion from $4.4 billion in the same quarter of fiscal 2025, representing growth of 4%.
Company reiterates long-term outlook
Disney maintained its fiscal 2026 guidance for adjusted earnings per share growth of approximately 12%, excluding the impact of the 53rd week, or roughly 16% including it.
For the third quarter, the company expects total segment operating income of approximately $5.3 billion.
Management also reaffirmed expectations for double-digit adjusted EPS growth in fiscal 2027, excluding the effect of the additional week.
“Our creative and operational momentum drove strong quarterly results, and we continue to expect growth to accelerate in the second half of the fiscal year,” said Chief Executive Officer Josh D’Amaro.
Theme parks remain a key driver
Disney’s Experiences division delivered record second-quarter revenue and operating income, rising 7% and 5%, respectively, compared with the prior year.
Per capita spending at domestic parks increased 5%, although attendance declined 1% as international visitation remained soft.
Sports segment faces higher costs
Operating income in the Sports division declined 5% during the quarter due to increased sports rights expenses and higher marketing costs.
Disney also said it achieved its first double-digit operating margin in the Entertainment SVOD segment and remains on track to deliver at least a 10% margin for the full fiscal year 2026.