The adjusted EPS beat and strong SVOD profitability are positive, but the GAAP EPS decline, Sports OI weakness, and cautious macro commentary on Experiences temper enthusiasm. Watch Q3 Sports OI guidance (-14% YoY) and whether the Experiences segment can sustain growth amid macro headwinds. The $8B+ buyback target provides a floor, but the stock may trade range-bound until clearer signs of accelerating growth in H2.
Price Chart
Executive Summary
Disney reported Q2 fiscal 2026 adjusted EPS of $1.57, beating the $1.50 consensus by 4.7%, on revenue of $25.2B (above $24.85B consensus). Revenue grew 7% YoY, driven by Entertainment SVOD (13% growth, first double-digit margin) and record Experiences revenue. However, GAAP EPS fell 30% to $1.27 due to restructuring charges and a non-cash tax charge from the NFL transaction. The company guided to ~12% adjusted EPS growth for fiscal 2026 (ex-53rd week) and at least $8B in share repurchases, but flagged macro uncertainty and a 14% expected Q3 Sports OI decline.
Key Financial Metrics
Key Facts
- Q2 FY2026 adjusted EPS of $1.57 vs consensus $1.50 (+4.7% beat)
- Q2 revenue $25.2B vs consensus $24.85B (+7% YoY)
- GAAP diluted EPS fell 30% YoY to $1.27 due to $239M restructuring/impairment and $115M non-cash tax charge from NFL transaction
- Entertainment SVOD operating income surged 88% to $582M, first double-digit margin (10.6%)
- Experiences segment posted record Q2 revenue ($9.5B) and OI ($2.6B), up 7% and 5% YoY
- Sports segment OI declined 5% YoY to $652M; Q3 guidance calls for ~14% decline
- Fiscal 2026 adjusted EPS growth guided to ~12% (ex-53rd week) or ~16% (including 53rd week)
- Company targeting at least $8B in share repurchases in fiscal 2026
- Q3 total segment OI guided to ~$5.3B
- Fiscal 2027 double-digit adjusted EPS growth expected (ex-53rd week)
Financial Impact
Q2 adjusted EPS beat consensus by $0.07; revenue beat by ~$0.3B; GAAP EPS decline of 30% YoY due to one-time items
Risk Factors
- Macroeconomic uncertainty weighing on domestic parks attendance and consumer spending
- Sports segment OI expected to decline ~14% in Q3 due to higher programming costs
- GAAP EPS significantly depressed by restructuring and non-cash tax charges
- Free cash flow for H1 down 53% YoY due to deferred tax payments and content investment
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001744489-26-000036 |
| Document: dis-20260506.htm | 0001744489-26-000036 |
| Document: 0001744489-26-000036-index-headers.html | 0001744489-26-000036 |
| Document: 0001744489-26-000036-index.html | 0001744489-26-000036 |
| Document: 0001744489-26-000036.txt | 0001744489-26-000036 |
| 8-K Data (Synthetic) | 0001744489-26-000036 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 20, 2026 8w ago | Insider Cluster | $107.78 $104.23 | ▼ −3.29% | ▼ −2.77% | $110.59 (+2.61%) |
Aug 14, 2026 9w ago | 144 | $103.50 $106.42 | ▲ +2.82% | ▲ +4.80% | $110.59 (+6.85%) |
Aug 5, 2026 10w ago | 8-K | $101.76 $107.98 | ▲ +6.11% | ▲ +6.71% | $110.59 (+8.68%) |
Jul 13, 2026 13w ago | ANALYST-UPGRADE | $96.00 $103.18 | ▲ +7.48% | ▲ +4.29% | $110.59 (+15.20%) |
Jun 14, 2026 18w ago | Institutional Cluster | $101.69 $96.00 | ▼ −5.60% | ▼ −4.85% | $110.59 (+8.75%) |
May 6, 2026 23w ago | 8-K | $107.75 $99.39 | ▼ −7.76% | ▼ −10.54% | $110.59 (+2.64%) |
Feb 28, 2026 33w ago | Institutional Cluster | $104.20 $94.32 | ▼ −9.48% | ▼ −1.54% | $110.59 (+6.14%) |
Feb 24, 2026 33w ago | 8-K | $105.02 $95.94 | ▼ −8.65% | ▼ −3.41% | $110.59 (+5.31%) |
US Market Status
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