May 6, 2026
To Our Shareholders and the Broader Investment Community,
At an important moment of change for Disney, we remain focused on executing our long-term growth strategy. Our creative and operational momentum drove strong quarterly results, and we continue to expect growth to accelerate in the second half of the fiscal year. We are strengthening streaming through continued investment in the creative storytelling that defines us and in product and technology innovation, while advancing ESPN’s direct-to-consumer future, and delivering on our bold growth plans at Disney Experiences.
Our segments’ Q2 operating income modestly exceeded our prior guidance. Stronger-than-expected revenue growth was the primary driver of the outperformance.
Revenues increased 7% for the second quarter to $25.2 billion from $23.6 billion in Q2 fiscal 2025. Income before income taxes increased 9% to $3.4 billion from $3.1 billion in Q2 fiscal 2025. Total segment operating income increased 4% to $4.6 billion from $4.4 billion in Q2 fiscal 2025. Diluted earnings per share (EPS) decreased to $1.27 from $1.81 in Q2 fiscal 2025. Adjusted EPS increased to $1.57 from $1.45 in Q2 fiscal 2025.
Fiscal 2026 outlook:
- We expect fiscal 2026 adjusted EPS growth of approximately 12%, excluding the impact of the 53rd week.
- We expect fiscal 2026 adjusted EPS growth of approximately 16%, including the impact of the 53rd week.
- We are targeting at least $8 billion in share repurchases in fiscal 2026.
- We expect Q3 total segment operating income of approximately $5.3 billion.
- Current demand at our domestic parks and resorts is healthy. However, we are mindful of the macroeconomic uncertainty consumers are facing today.
Fiscal 2027 outlook:
- We continue to expect double-digit growth in adjusted EPS in fiscal 2027, excluding the impact of the 53rd week. Note that in Q4 fiscal 2027 we will lap the impact of the 53rd week in Q4 fiscal 2026.
The Walt Disney Company released its second-quarter earnings on Wednesday (available here), marking Josh D’Amaro’s first time speaking to investors as CEO.
“I want to begin by saying just how honored I am to be leading The Walt Disney Company,” D’Amaro said on Disney’s earnings call on Wednesday. “This is one of the world’s truly great companies — built over more than a century through powerful storytelling, constant innovation, and a singular ability to forge deep, emotional connections with audiences all around the world. I step into this role with genuine appreciation, a strong sense of responsibility, and real optimism about what lies ahead.”
D’Amaro emphasized that Disney will stay disciplined in delivering on its current plans while simultaneously building for the future.
“Disney is uniquely positioned in the entertainment industry — no other company reaches consumers to the same degree across both digital and physical environments,” he added. “Our goal is to leverage that position to extend our reach, deepen engagement, and generate greater value from our world-class intellectual property. To fully capture this opportunity, we will embrace technology more aggressively and build a more connected consumer experience, with Disney+ right at the center.”
Strategic Priorities
D’Amaro also took the opportunity to walk investors through his strategic priorities.
“Looking at the first half of the fiscal year and our expectations for the second half, we are executing with focus, delivering against our stated commitments, and investing in areas that we believe will drive long-term value,” he said. “As we look ahead, my strategic priorities as CEO build directly on that foundation.”
According to D’Amaro, those strategic priorities are:
- “First, creative excellence, it will remain at the center of everything that we do. Disney’s greatest competitive advantage has always been the quality of our storytelling and the enduring connection our brands have with audiences all around the world.”
- “Second, we have a real opportunity to deepen our direct relationship with our fans by creating a more connected Disney experience across streaming, sports, games and Experiences — with Disney+ playing an increasingly central role.”
- “Third, technology, it can be a powerful accelerant for Disney — improving the consumer experience across our business lines, driving operational efficiency, and unlocking new possibilities for creativity, growth, and returns.”
Streaming
Speaking on Disney’s streaming business, D’Amaro noted that “our focus remains consistent: improve the consumer experience, deepen engagement, and continue building a healthy and more durable growth business.”
He added that the company is also exploring the “meaningful opportunity for growth internationally” when it comes to streaming.
“We are focused on scaling outside the US. We are increasing our local content investments and early results — they’re encouraging,” he said. “While more work remains, we are pleased with the progress we are making in both the consumer experience and underlying economics.”
Entertainment
D’Amaro then turned to the company’s IP saying that Disney continues to invest in the “great storytelling, franchises, and talent that define Disney and fuel our film and television content.” He pointed to several standout examples from the quarter that reflected this strategy, including High Potential and the new limited series Love Story: John F. Kennedy Jr. and Carolyn Bessette.
“And we of course see the potential of this strategy in films like Zootopia 2, which not only generated $1.9 billion in global box office, but the franchise has now surpassed 1 billion hours streamed on Disney+,” he said.
D’Amaro added that the company is excited about its upcoming film slate.
“When you look at our upcoming slate of franchise films, each has the potential to resonate with our fans well beyond its initial release, moving across platforms, experiences, and products in a way that deepens engagement and extends reach over time,” he said.
Experiences
Turning to Disney Experiences, D’Amaro said the segment continues to “demonstrate strength in the core business and make progress against our growth initiatives.”
“Since our last call, Disney Cruise Line launched the Disney Adventure — our first ship home-ported in Asia — and at Disneyland Paris we opened World of Frozen as part of the reimagined Disney Adventure World,” he said. “These are meaningful milestones that extend the reach of our brands to new markets and new fans around the world.”
D’Amaro added that “the strong demand that we’re seeing for these attractions reinforces our confidence in the long-term opportunity across our portfolio of experiential assets — parks, cruise line, and immersive experiences alike.”
“We remain mindful of the near-term variability, but are also well positioned to benefit from sustained consumer demand for live entertainment at a scale unique to Disney,” he said.
Sports
On the topic of live entertainment, D’Amaro said ESPN is continuing to build toward “a stronger direct-to-consumer future.”
“Enhancements to the ESPN app, including Multiview, Verts, and SportsCenter for You, are making the offering increasingly compelling for fans,” he said. “As we manage this business in transition, we remain focused on serving sports fans in a way that fully captures the value of ESPN and live sports within Disney’s broader direct-to-consumer offering.”
Final Thoughts
Wrapping up the executive commentary, D’Amaro said that the company’s “immediate priority is disciplined execution,” but that he is “equally energized by the opportunities ahead.”
“Disney has iconic brands, extraordinary creative talent, powerful platforms, and unmatched experiences,” he concluded. “Our job is to execute with rigor, to invest with confidence, and connect those strengths in ways that create lasting value for consumers and shareholders alike.”
Additional Information
The information above should be read together with Disney’s Q2 FY26 earnings release, Form 10-Q and earnings call (available here), which discuss additional information, including additional challenges and risks the company’s businesses face and additional information about Q2 FY26 performance.
Forward Looking Statements
Certain statements in this communication may constitute “forward‐looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our expectations, business plans or prospects; future benefits of our strategic priorities, opportunities and investments; plans, expectations and drivers for the growth of our streaming services, parks, cruise ships and immersive experiences; and other statements that are not historical in nature. Any information that is not historical in nature is subject to change. These statements are made on the basis of management’s views and assumptions regarding future events and business performance as of the time the statements are made. Management does not undertake any obligation to update these statements.
Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the company, including our business decisions and execution of our business plans, as well as from developments beyond the company’s control, including: the occurrence of subsequent events; domestic and global economic conditions; competitive conditions; and consumer preferences.
Additional factors are set forth in the company’s most recent Annual Report on Form 10-K, including under the captions “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Business,” subsequent quarterly reports on Form 10-Q, including under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and subsequent filings with the Securities and Exchange Commission.
The terms “company,” “we,” and “our” are used in this communication to refer collectively to the parent company and the subsidiaries through which our various businesses are actually conducted.