The Walt Disney Company saw its stock jump over 7% after delivering stronger-than-expected second-quarter FY2026 results, driven by robust growth in streaming, advertising, and theme park businesses.
The entertainment giant reported Q2 revenue of $25.2 billion, marking a 7% year-on-year rise, while adjusted earnings per share climbed 8% to $1.57. Both figures comfortably beat market expectations, signalling renewed momentum across Disney’s diversified business portfolio.
Streaming emerged as a major growth engine for the quarter. Disney’s Entertainment SVOD business accelerated to 13% revenue growth, up from 11% in the previous quarter, aided by subscriber gains and improved pricing strategies. The company also recorded double-digit growth in advertising revenue, reflecting stronger engagement across its digital ecosystem.
Disney Experiences, which includes parks, resorts, and cruises, delivered another strong quarter with revenue rising 7% year-on-year and operating income growing 5%. While domestic park attendance dipped slightly, the company attributed this to lower international travel demand, adding that forward bookings for the remainder of the year remain strong.
The company also highlighted aggressive expansion plans for its cruise business. Disney Cruise Line is expected to grow from eight ships currently to 13 ships by 2031, with occupancy levels continuing to remain healthy.
Looking ahead, Disney reaffirmed its FY2026 guidance of 12% adjusted EPS growth and projected double-digit earnings growth again in FY2027.
CEO Josh D’Amaro credited the performance to strong execution across businesses, while the market responded positively to Disney’s improving streaming economics, stable margins, and sustained consumer demand across experiences and entertainment.
