Disney reported its second fiscal quarter earnings this morning, and the numbers came in strong under new CEO Josh D’Amaro. The company posted $25.2 billion in revenue, up 7% year over year, and adjusted earnings per share of $1.57, beating Wall Street’s estimate of $1.50. Parks revenue and operating income both hit fiscal Q2 records. Disney stock jumped roughly 5% in pre-market trading.
Disney Experiences, the segment that covers parks, cruises, and consumer products, brought in $9.49 billion in revenue, up 7%, with operating income of $2.62 billion, up 5%. Both figures are fiscal Q2 records. Domestic attendance dipped 1% compared to the same period last year, which Disney attributed to broader economic headwinds and softer international visitation. Record revenue on slightly fewer guests means per-guest spending continued to climb. Management said they expect year-over-year attendance improvement in the current quarter, and described domestic demand as healthy heading into summer. New cruise ship capacity also contributed to growth.
On the streaming side, Disney+ and Hulu generated $582 million in operating income during the quarter, up 88% from a year ago. That pushed the streaming segment’s operating margin above 10% for the first time. Combined streaming revenue hit $5.49 billion, up 13%, driven by subscriber growth, the fall 2025 price increases, and expanding ad revenue. Zootopia 2 crossed one billion hours viewed on Disney+ following its $1.9 billion theatrical run. Avatar: Fire and Ash arrives this summer alongside the final season of The Bear.
ESPN posted $4.61 billion in revenue, up 6%, helped in part by the NFL’s newly acquired 10% ownership stake in the network, which contributed 3% to sports segment revenue. Operating income came in at $652 million, down 5%, with higher rights costs eating into gains.
For the full fiscal year, Disney is guiding to roughly 12% adjusted EPS growth, with fiscal 2027 projections calling for double-digit growth again. Q3 operating income is targeted at approximately $5.3 billion, which would be up 16% year over year.
D’Amaro outlined his strategy across three pillars: investing in IP that breaks through and endures, reaching consumers in more seamless and engaging ways, and leaning into technology including AI. Mandalorian & Grogu hits theaters first, followed by live-action Moana and Toy Story 5 this summer. Each of those properties already has a footprint in the parks, and the Experiences segment continues to draw on the same IP pipeline that powers the studio and streaming sides.
The opening numbers under D’Amaro include parks records, streaming profitability, and guidance pointing higher for the rest of the fiscal year. As his first earnings call as CEO, the goal was clearly to set a tone. Disney is leaning into IP, leaning into Experiences, and leaning into a future where the parks remain the anchor of the entire company.
From The Kingdom Sentinel
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