Streaming Accelerates and Parks Hit Q2 Records in D'Amaro's Debut (DIS Q2 2026 Earnings Call)
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In his first earnings presentation as CEO, Josh D'Amaro delivered a reassuring message backed by strong fundamental performance across Disney's core divisions. With the Experiences segment shrugging off attendance headwinds to post record second-quarter revenue and the streaming business accelerating its top-line growth, the company demonstrated that its ongoing transition toward a unified, digital-first entertainment ecosystem is actively gaining traction.
Revenue Climbs 7% as Experiences and Streaming Exceed Expectations
In his inaugural earnings call as CEO, Josh D'Amaro reported a 7% year-over-year revenue increase and a 4% rise in total segment operating income, beating internal expectations. The outperformance was fueled by record second-quarter results in the Experiences division and accelerating top-line growth in the direct-to-consumer streaming business.
Adjusted EPS Projected to Grow 12% in Fiscal 2026
Chief Financial Officer Hugh Johnston reaffirmed the company's financial outlook, projecting a 12% growth in adjusted earnings per share for fiscal 2026 and double-digit growth for fiscal 2027. Management also raised its sports operating income guidance to mid-single digits, reflecting the recent NFL network transaction and slightly better-than-expected programming fee management in the quarter.
Streaming Revenue Accelerates as Zootopia 2 Crosses $1.9 Billion
The entertainment SVOD segment saw revenue growth accelerate to 13% in the second quarter, driven by both pricing and volume gains. The studio continued to leverage its intellectual property, highlighted by Zootopia 2 generating $1.9 billion at the global box office. Meanwhile, the Experiences segment posted a 5% operating income increase despite a slight decline in domestic park attendance.
Disney+ Positioned as Digital Centerpiece for Connected Ecosystem
During the Q&A, D'Amaro emphasized a strategy to make Disney+ the "digital centerpiece" of the company, connecting storytelling, sports, games, and physical experiences. Addressing concerns over linear television, Johnston noted that Disney Entertainment generates more than double the revenue from streaming compared to linear networks, indicating the monetization transition is progressing rapidly.