OpenNashEarnings

Disney (DIS) · Media & Streaming

Disney Q2 FY2026 earnings: summary, key numbers & outlook

Results filed 6 May 2026 · Quarter ended 28 Mar 2026

Press release ↗Investor relations ↗

Summaries and transcripts are machine-generated and can contain errors.

In brief

Disney's Q2 fiscal 2026 revenues increased 7% to $25.2 billion, with diluted EPS of $1.27 and adjusted EPS of $1.57 versus $1.45 a year ago.

Disney grew revenues 7% to $25.2 billion in the second quarter. Total segment operating income rose 4% to $4.6 billion, and adjusted EPS rose to $1.57 from $1.45. Streaming was the standout: Entertainment SVOD revenue grew 13% and operating income reached $582 million, giving Disney its first double-digit SVOD operating margin. Experiences set fiscal second-quarter records. Reported diluted EPS fell to $1.27 from $1.81 because the year-ago quarter included a large tax benefit.

Management expects growth to accelerate in the second half. It guides to about 12% fiscal 2026 adjusted EPS growth excluding the 53rd week, about $5.3 billion of Q3 segment operating income, and at least $8 billion of buybacks. The main tension is Sports, where Q3 operating income is expected to fall about 14% on higher programming costs. Management also flags macroeconomic uncertainty for consumers, even though domestic park demand is described as healthy.

Key numbers

Revenues · GAAP
$25.2 billion

up 7% from $23.6 billion in Q2 fiscal 2025

Net income attributable to Disney · GAAP
$2.2B

compared with $3,275 in the prior-year quarter

Diluted EPS · GAAP
$1.27

decreased from $1.81 in Q2 fiscal 2025

Adjusted diluted EPS · non-GAAP
$1.57

increased from $1.45 in Q2 fiscal 2025

Total segment operating income · non-GAAP
$4.6 billion

up 4% from $4.4 billion in Q2 fiscal 2025

Cash provided by operations · GAAP
$6.9B

compared with $6,753 in the prior-year quarter

Free cash flow · non-GAAP
$4.9B

compared with $4,891 in the prior-year quarter

Segment or metricValueChange
Entertainment segment operating income$1,3366%
Experiences segment operating income$2,6155%
Entertainment SVOD operating income$58288%
Entertainment SVOD revenue growth13%up from 11% in Q1
Entertainment SVOD operating margin10.6%
Domestic parks per capita spendingup 5%vs. prior-year quarter
Where each number comes from
  • Revenues: “Revenues increased 7% for the second quarter to $25.2 billion from $23.6 billion in Q2 fiscal 2025.”
  • Net income attributable to Disney: “Net income attributable to noncontrolling interests | (218) | (126) | (300) | (216) Net income attributable to The Walt Disney Company (Disney) | $2,247 | $3,275 | $4,649 | $5,829”
  • Diluted EPS: “Diluted earnings per share (EPS) decreased to $1.27 from $1.81 in Q2 fiscal 2025.”
  • Adjusted diluted EPS: “Adjusted EPS increased to $1.57 from $1.45 in Q2 fiscal 2025.”
  • Total segment operating income: “Total segment operating income(1) increased 4% to $4.6 billion from $4.4 billion in Q2 fiscal 2025.”
  • Cash provided by operations: “Cash provided by operations | $6,914 | $6,753 | $161 | $7,649 | $9,958 | $(2,309)”
  • Free cash flow: “Free cash flow | $4,941 | $4,891 | $50 | $2,663 | $5,630 | $(2,967)”
  • Entertainment segment operating income: “Segment operating income: Entertainment | $1,336 | $1,258 | 6 % | $2,436 | $2,961 | (18) % Sports | 652”
  • Experiences segment operating income: “Depreciation and amortization | (788) | (705) | (12) % Total costs and expenses | (6,872) | (6,398) | (7) % Operating Income | $2,615 | $2,491 | 5 %”
  • Entertainment SVOD operating income: “Total costs and expenses | (4,904) | (4,552) | (8) % Entertainment SVOD operating income(2) | $582 | $310 | 88 %”
  • Entertainment SVOD revenue growth: “Entertainment SVOD(1) revenue growth accelerated to 13% in Q2 compared to the prior-year quarter, up from 11% in Q1.”
  • Entertainment SVOD operating margin: “For the current quarter, Entertainment segment operating margin and SVOD operating margin were 11.4% and 10.6%, respectively.”
  • Domestic parks per capita spending: “Per capita spending at our domestic parks was up 5% in the quarter, driven by growth in admissions, food and beverage, and merchandise.”

Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.

From the filingQ2 FY2026vs year agovs last quarter
Revenue$25.2B+6.5%−3.1%
Operating income$4.6B+3.8%+0.1%
Net income$2.2B−31.4%−6.5%
Diluted EPS$1.27−29.8%−5.2%
Free cash flow$4.9B+1.0%—
Operating margin18.3%−0.5 pts+0.6 pts

Calculated by code from XBRL, not by the model.

Outlook

MetricPeriodOutlook
Adjusted EPS growth excluding 53rd weekfiscal 2026approximately 12%
Adjusted EPS growth including 53rd weekfiscal 2026approximately 16%
Share repurchasesfiscal 2026at least $8 billion
Total segment operating incomeQ3 fiscal 2026approximately $5.3 billion
Sports segment operating income changeQ3 fiscal 2026approximately 14%
NFL transaction dilution to adjusted EPSfiscal 2026roughly $0.03
Entertainment SVOD operating marginfiscal 2026at least 10%

Key takeaways

  1. Streaming reached its first double-digit margin

    Entertainment SVOD operating income was $582 million versus $310 million a year ago, and revenue growth accelerated to 13% from 11% in Q1. Management remains on track for at least 10% for the full fiscal year 2026.

  2. Adjusted EPS rose while GAAP EPS fell

    Adjusted EPS increased to $1.57 from $1.45, while diluted EPS decreased to $1.27 from $1.81. The prior-year GAAP figure included a resolution of a prior-year tax matter worth $0.56 per share.

  3. Sports profit is under pressure from programming costs

    Sports segment operating income declined 5% in Q2 on higher rights fees and marketing costs. For Q3, management expects a decline of approximately 14%, driven by a double-digit percentage increase in programming expenses.

  4. Experiences posted record fiscal second-quarter results

    Experiences revenues grew 7% and operating income grew 5%, with domestic per capita spending up 5%. Pre-opening costs for the Disney Adventure and World of Frozen weighed on operating income growth by roughly two percentage points.

  5. Cash flow and buybacks reflect heavier spending

    Six-month free cash flow was $2,663 million versus $5,630 million, due to higher tax payments and capital investment. Disney is targeting at least $8 billion in share repurchases in fiscal 2026.

Charts

Revenue$25.2B+6.5% y/yQ2 FY26
Q4 FY24: $22.6B (worked out from the annual figure)Q4 24$22.6BQ1 FY25: $24.7BQ1 25$24.7BQ2 FY25: $23.6BQ2 25$23.6BQ3 FY25: $23.6BQ3 25$23.6BQ4 FY25: $22.5B (worked out from the annual figure)Q4 25$22.5BQ1 FY26: $26.0BQ1 26$26.0BQ2 FY26: $25.2BQ2 26$25.2BQ3 FY26: $25.2BQ3 26$25.2B

Fourth quarter worked out from the annual figure.

Data
Q4 FY24$22.6B *
Q1 FY25$24.7B
Q2 FY25$23.6B
Q3 FY25$23.6B
Q4 FY25$22.5B *
Q1 FY26$26.0B
Q2 FY26$25.2B
Q3 FY26$25.2B
Diluted EPS (GAAP)$1.27−29.8% y/yQ2 FY26
Q1 FY25: $1.40Q1 25$1.40Q2 FY25: $1.81Q2 25$1.81Q3 FY25: $2.92Q3 25$2.92Q1 FY26: $1.34Q1 26$1.34Q2 FY26: $1.27Q2 26$1.27Q3 FY26: $1.51Q3 26$1.51
Data
Q1 FY25$1.40
Q2 FY25$1.81
Q3 FY25$2.92
Q1 FY26$1.34
Q2 FY26$1.27
Q3 FY26$1.51

Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.

Operating margin18.3%−0.5 pts y/yQ2 FY26
Q4 FY24: 16.2%Q4 2416.2%Q1 FY25: 20.5%Q1 2520.5%Q2 FY25: 18.8%Q2 2518.8%Q3 FY25: 19.3%Q3 2519.3%Q4 FY25: 15.5%Q4 2515.5%Q1 FY26: 17.7%Q1 2617.7%Q2 FY26: 18.3%Q2 2618.3%Q3 FY26: 22.0%Q3 2622.0%
Data
Q4 FY2416.2%
Q1 FY2520.5%
Q2 FY2518.8%
Q3 FY2519.3%
Q4 FY2515.5%
Q1 FY2617.7%
Q2 FY2618.3%
Q3 FY2622.0%
Free cash flow$4.9B+1.0% y/yQ2 FY26
Q4 FY24: $4.0BQ4 24$4.0BQ1 FY25: $739.0MQ1 25$739.0MQ2 FY25: $4.9BQ2 25$4.9BQ3 FY25: $1.9BQ3 25$1.9BQ4 FY25: $2.6BQ4 25$2.6BQ1 FY26: -$2.3BQ1 26-$2.3BQ2 FY26: $4.9BQ2 26$4.9BQ3 FY26: $3.1BQ3 26$3.1B
Data
Q4 FY24$4.0B
Q1 FY25$739.0M
Q2 FY25$4.9B
Q3 FY25$1.9B
Q4 FY25$2.6B
Q1 FY26-$2.3B
Q2 FY26$4.9B
Q3 FY26$3.1B

Operating cash flow minus capital expenditure, from cash flow statements.

Questions

What were Disney's headline results for Q2 fiscal 2026?

Revenues rose 7% to $25.2 billion, and total segment operating income rose 4% to $4.6 billion. Diluted EPS was $1.27 versus $1.81 a year ago, while adjusted EPS was $1.57 versus $1.45.

How did Disney's streaming business perform?

Entertainment SVOD revenue grew 13% and operating income was $582 million versus $310 million a year ago. The SVOD operating margin was 10.6%, Disney's first double-digit quarter, and management expects at least 10% for fiscal 2026.

What is Disney's outlook for the rest of fiscal 2026?

Disney expects fiscal 2026 adjusted EPS growth of approximately 12% excluding the 53rd week, or approximately 16% including it. It also expects Q3 total segment operating income of approximately $5.3 billion and is targeting at least $8 billion of share repurchases.

Why did Sports operating income fall, and what comes next?

Sports operating income declined 5% to $652 million on higher rights fees, including the timing of new rights agreements, and higher marketing costs. Management expects Q3 Sports operating income to fall approximately 14%, though full-year growth is expected at a mid-single digit percentage excluding the 53rd week.

Why did GAAP EPS fall while adjusted EPS rose?

The year-ago quarter's GAAP EPS of $1.81 included a $0.56 benefit from the resolution of a prior-year tax matter. The current quarter also included a $0.05 non-cash tax charge from the NFL Transaction and $0.12 of restructuring and impairment charges, which adjusted EPS excludes.

Documents

SEC filing