# Disney (DIS) Q2 FY2026 earnings

Results filed 2026-05-06 for the quarter ended 2026-03-28. Source page: https://earnings.opennash.com/companies/dis/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1744489/000174448926000036/0001744489-26-000036-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Revenues | $25.2 billion | up 7% from $23.6 billion in Q2 fiscal 2025 | GAAP |
| Net income attributable to Disney | $2,247 | compared with $3,275 in the prior-year quarter | GAAP |
| Diluted EPS | $1.27 | decreased from $1.81 in Q2 fiscal 2025 | GAAP |
| Adjusted diluted EPS | $1.57 | increased from $1.45 in Q2 fiscal 2025 | non-GAAP |
| Total segment operating income | $4.6 billion | up 4% from $4.4 billion in Q2 fiscal 2025 | non-GAAP |
| Cash provided by operations | $6,914 | compared with $6,753 in the prior-year quarter | GAAP |
| Free cash flow | $4,941 | compared with $4,891 in the prior-year quarter | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Entertainment segment operating income | $1,336 | 6% |
| Experiences segment operating income | $2,615 | 5% |
| Entertainment SVOD operating income | $582 | 88% |
| Entertainment SVOD revenue growth | 13% | up from 11% in Q1 |
| Entertainment SVOD operating margin | 10.6% |  |
| Domestic parks per capita spending | up 5% | vs. prior-year quarter |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Adjusted EPS growth excluding 53rd week | fiscal 2026 | approximately 12% |
| Adjusted EPS growth including 53rd week | fiscal 2026 | approximately 16% |
| Share repurchases | fiscal 2026 | at least $8 billion |
| Total segment operating income | Q3 fiscal 2026 | approximately $5.3 billion |
| Sports segment operating income change | Q3 fiscal 2026 | approximately 14% |
| NFL transaction dilution to adjusted EPS | fiscal 2026 | roughly $0.03 |
| Entertainment SVOD operating margin | fiscal 2026 | at 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.

## 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.