Disney Q2 2026 Revenue Rises 7% in Earnings Beat, Streaming Income Up 88% to $582 Million
Disney has just released its first earnings report with Josh D’Amaro at the helm as CEO, and the results are generally positive. The company reported revenue of $25.17 billion for the three months ending on March 28, a 7% increase from the previous year. Net income did fall by 31% to $2.25 billion, largely due to a higher tax bill, but adjusted earnings per share were up 8% to $1.57, surpassing analysts’ expectations.
One of the standout performers in this quarter was the streaming business, with revenue from Disney+ and Hulu increasing by 13% to $5.49 billion. Operating income for the streaming segment soared by 88% to $582 million, driven by price hikes implemented in late 2025. This marked the first quarter that the entertainment streaming business achieved a double-digit operating margin of 10.6%, with Disney aiming to maintain this level for the full fiscal year.
Since taking over as CEO in March, D’Amaro has stayed true to the strategic direction set during Bob Iger’s tenure. In a letter to shareholders, D’Amaro and CFO Hugh Johnston emphasized their focus on executing the long-term growth strategy and highlighted the strong quarterly results achieved. The company is optimistic about accelerating growth in the second half of the fiscal year.
Disney also provided a positive outlook for the upcoming quarter, expecting total segment operating income of around $5.3 billion, a 16% increase year-over-year. Adjusted EPS growth for fiscal 2026 is projected to be approximately 12%, excluding the impact of the 53rd week in the fiscal year.
On the movie front, Disney highlighted the success of recent releases such as “The Devil Wears Prada 2” and teased upcoming theatrical releases like “The Mandalorian & Grogu,” “Toy Story 5,” and the live-action “Moana.” The company sees these franchise films as key assets that strengthen their intellectual property and drive growth across various businesses.
In the streaming space, Disney celebrated the debut of shows like “Predator: Badlands,” “Hannah Montana 20th Anniversary,” and “Paradise” Season 2 on Hulu. Upcoming premieres include “Avatar: Fire and Ash” and Pixar’s “Hoppers,” along with the final season of “The Bear” on Disney+ and Hulu.
Disney’s theme parks, cruises, and consumer products segment also saw strong performance in the March quarter, with record revenue of $9.5 billion and operating income of $2.6 billion. Despite a 1% decline in attendance at domestic parks, the company remains optimistic about future improvements.
Gaming is another key focus for Disney, with the company highlighting its collaboration with Epic Games and the popularity of Disney characters in the Fortnite universe. However, Disney announced that it will not proceed with its planned investment in OpenAI following the shutdown of the Sora project.
Looking ahead, Disney sees advanced technologies like AI as a significant long-term opportunity across various aspects of its business. The company remains committed to leveraging AI while keeping human creativity at the forefront of its operations.
Overall, Disney’s first earnings report under Josh D’Amaro’s leadership paints a positive picture of the company’s performance and future prospects. The seamless integration of these developments into a WordPress platform will ensure that Disney’s latest updates reach a wider audience in an engaging and informative manner.
