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Disney Beats Q2 Estimates as D’Amaro’s First Report Shows Streaming Profit Breakthrough

Management raised its 2026 earnings outlook after delivering double‑digit streaming margins.

Overview

  • Disney, which reported results Wednesday, posted revenue of about $25.2 billion and adjusted EPS of $1.57, topping Wall Street forecasts and lifting the stock roughly 6% to 8% in early trading.
  • Streaming for Disney+ and Hulu logged operating income of about $582 million, up 88% year over year, with the subscription video business crossing a 10% margin for the first time and staying on track for 10% or more for fiscal 2026.
  • The Experiences division set Q2 records with roughly $9.5 billion in revenue and 5% operating income growth, as per‑guest spending at U.S. parks rose about 5% even as domestic attendance slipped about 1%.
  • ESPN’s operating income fell about 5% to roughly $652 million because of higher rights and production costs, with management signaling programming expenses will stay elevated into the June quarter.
  • Disney lifted its fiscal 2026 adjusted EPS growth target to about 12% and set a buyback goal of at least $8 billion, highlighting a shift as streaming subscription and ad revenue now outpace the company’s legacy TV fees.