The Walt Disney Company has reported quarterly revenue of US$25.17 billion, surpassing Wall Street expectations, as growth in its streaming and theme park businesses helped offset continued declines in the traditional television segment. Shares of the company rose around 7 per cent following the earnings announcement.
The company’s experiences division, which includes theme parks and cruises, generated nearly US$9.5 billion in revenue during the quarter, marking a 7 per cent year-on-year increase. Global guest attendance increased 2 per cent, although domestic park visitation declined 1 per cent compared with the previous year. Disney noted that international visitation at domestic parks remained softer, continuing a trend seen in the previous quarter.
Despite macroeconomic pressures and uncertainty linked to the U.S.-Israel attacks on Iran in late February, which led to higher oil prices, Disney stated that demand across its domestic parks remained healthy. The company also recorded higher guest spending during the quarter.
Hugh Johnston, Chief Financial Officer, Disney, said, “We continue to see a strong consumer. While there may be some concerns around the macros and specifically around the price of fuel, we have not seen any evidence of that.”
He added that bookings for the second half of the year were “quite strong”.
For its fiscal second quarter, Disney reported adjusted earnings per share of US$1.57 against analysts’ expectations of US$1.49. Revenue came in at US$25.17 billion compared with the expected US$24.78 billion.
Overall revenue increased 7 per cent year on year, while net income stood at US$2.47 billion, or US$1.27 per share, compared with US$3.4 billion, or US$1.81 per share, during the same period last year.
After adjusting for one-time items, including ESPN’s acquisition of the NFL Network and other media assets, Disney posted adjusted earnings per share of US$1.57.
The company also shared additional guidance for fiscal 2026, projecting adjusted earnings growth of approximately 12 per cent and increasing its share repurchase target to at least US$8 billion from the previously announced US$7 billion. Disney expects third-quarter total segment income of around US$5.3 billion and forecasts double-digit adjusted earnings growth for fiscal 2027.
The earnings report marked the first under Josh D’Amaro, CEO, Disney, who succeeded Bob Iger in March. During the investor call, D’Amaro outlined plans focused on intellectual property investments and advancing storytelling technologies to drive future growth across streaming and theme parks.
“It’s a competitive streaming marketplace out there right now,” Josh D’Amaro, CEO, Disney said.
He emphasised, “Despite that, we saw an increase in engagement in the quarter, and then when we look ahead, our key drivers for engagement growth include content and product enhancements.”
Disney’s entertainment segment, which includes traditional television, streaming, and theatrical releases, reported a 10 per cent rise in revenue to US$11.72 billion. The segment also benefited from the recently completed Fubo deal, which contributed a 4 per cent boost to entertainment revenue.
Subscription and affiliate fees rose 14 per cent to US$7.8 billion, supported by streaming price increases, while advertising revenue increased 5 per cent due to higher streaming impressions.
Recent theatrical releases, including Avatar: Fire and Ash and Zootopia 2, also contributed to growth in the entertainment business.
Disney’s sports segment, which includes ESPN, reported a 2 per cent increase in revenue to US$4.61 billion, driven by higher subscription and affiliate fees as well as the NFL media deal. The company highlighted rising costs associated with new sports rights and contract rate increases.
ESPN’s direct-to-consumer streaming application, launched in August, emerged as a key contributor during the quarter, with digital subscriber revenue offsetting declines in the traditional television ecosystem.
Addressing the NFL’s move to renegotiate media rights agreements earlier than expected, Johnston said, “We haven’t engaged yet with the league on early renewal conversations, but we’re not dogmatic about the process, and we’re always willing to have a conversation with the NFL to find new opportunities for growth.”
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