Disney beats estimates as streaming growth accelerates

Investing.com -- Walt Disney Co. (NYSE: DIS) reported second-quarter results that exceeded Wall Street expectations, driven by stronger-than-expected streaming revenue and solid performance at its theme parks.

The entertainment giant posted adjusted earnings per share of $1.57, topping the analyst consensus of $1.50, while revenue climbed 7% YoY to $25.17 billion, surpassing estimates of $24.85 billion.

The company's Entertainment SVOD revenue accelerated to 13% growth compared to the prior-year quarter, up from 11% in the first quarter, fueled by improved monetization following rate adjustments and volume growth from new international wholesale agreements. Total segment operating income rose 4% to $4.6 billion from $4.4 billion in the second quarter of fiscal 2025.

Shares jumped 7.4% following the results.

Disney maintained its fiscal 2026 adjusted EPS growth outlook of approximately 12%, excluding the impact of the 53rd week, or approximately 16% including it. For the third quarter, the company expects total segment operating income of approximately $5.3 billion. The company also reiterated its expectation for double-digit adjusted EPS growth in fiscal 2027, excluding the 53rd week impact.

"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," said Chief Executive Officer Josh D'Amaro.

The Experiences segment posted record second-quarter revenue and operating income, growing 7% and 5% respectively compared to the prior year. Per capita spending at domestic parks increased 5%, though attendance declined 1% due to continued softness in international visitation. The Sports segment saw operating income decline 5% due to higher rights fees and marketing costs.

Disney achieved its first double-digit Entertainment SVOD operating margin in the quarter and remains on track to deliver at least 10% for full fiscal year 2026.

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