Disney reported fiscal second-quarter earnings on May 5, 2026, exceeding analyst expectations. The company posted adjusted earnings per share of $1.29, above the $1.10 consensus estimate, according to FactSet. Revenue came in at $22.5 billion, slightly above the $22.4 billion forecast.
The entertainment giant's streaming division, including Disney+, Hulu, and ESPN+, achieved a combined operating profit of $350 million, marking a significant turnaround from a loss of $587 million in the same quarter last year. Disney+ added 7.9 million core subscribers, reaching 153.6 million total, driven by international expansion and content releases.
U.S. theme parks revenue rose 8% to $6.2 billion, with operating income up 12% to $1.8 billion, fueled by higher attendance and per-capita spending. However, international parks, particularly Disneyland Paris and Shanghai Disneyland, saw a 5% decline in revenue due to lower visitation from Chinese tourists and ongoing economic headwinds in Europe.
CEO Bob Iger highlighted the company's progress in its cost-cutting initiative, with $2.5 billion in annualized savings achieved so far, on track to reach $5.5 billion by the end of fiscal 2026. The company also announced a $3 billion share buyback program.
Disney's linear networks segment, including ABC and cable channels, continued to decline, with revenue down 7% to $2.8 billion, reflecting cord-cutting trends. The company's film studio revenue rose 12% to $1.5 billion, boosted by the success of 'Avatar 3' and 'Inside Out 2' releases.
