Disney reported a 7% year-on-year increase in revenue for the second quarter of fiscal 2026, with revenues rising to $25.2 billion from $23.6 billion in Q2 fiscal 2025. Income before income taxes increased 9% to $3.4 billion, compared to $3.1 billion in the corresponding quarter last year. Total segment operating income rose 4% to $4.6 billion from $4.4 billion in Q2 fiscal 2025.
Diluted earnings per share (EPS) declined to $1.27 from $1.81 in the prior-year quarter. However, adjusted EPS increased to $1.57 from $1.45 year-on-year. The company said it now generates more entertainment subscription, affiliate fees and advertising revenues from SVOD platforms than from linear television, highlighting the continued shift toward streaming. Disney added that it expects the mix shift from linear TV toward streaming to continue.
Entertainment advertising revenues grew nearly 5% compared to the prior-year quarter, with the Fubo transaction contributing more than 1% to the growth. The company said expanding streaming revenues more than offset declines in linear television revenues.
Advertising revenues at ESPN declined 2% year-on-year, partly due to fewer NBA games and the absence of last year’s 4 Nations hockey tournament. Disney also cited lower advertising impressions as a factor impacting sports revenue growth during the quarter.
For fiscal 2026, Disney said it expects adjusted EPS growth of approximately 12%, excluding the impact of the 53rd week, and approximately 16% growth including the impact of the additional week.
The company is targeting at least $8 billion in share repurchases in fiscal 2026 and expects Q3 total segment operating income of approximately $5.3 billion. Disney also said demand across its domestic parks and resorts remains healthy, though it remains mindful of the macroeconomic uncertainty consumers are currently facing.
For fiscal 2027, the company reiterated expectations of double-digit growth in adjusted EPS (excluding the impact of the 53rd week). Disney noted that in Q4 fiscal 2027 it will lap the impact of the 53rd week recorded in Q4 fiscal 2026.
