Financial documents have been
released.
Here are a few details from the release:
To Our Shareholders and the Broader Investment Community,
At an important moment of change for Disney, we remain focused on executing our long-term growth
strategy. 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. We are strengthening streaming
through continued investment in the creative storytelling that defines us and in product and
technology innovation, while advancing ESPN’s direct-to-consumer future, and delivering on our bold
growth plans at Disney Experiences.
Our segments’ Q2 operating income results modestly exceeded our prior guidance. Stronger-than-
expected revenue growth was the primary driver of the outperformance.
Revenues increased 7% for the second quarter to $25.2 billion from $23.6 billion in Q2 fiscal 2025.
Income before income taxes increased 9% to $3.4 billion from $3.1 billion in Q2 fiscal 2025. Total
segment operating income(1) increased 4% to $4.6 billion from $4.4 billion in Q2 fiscal 2025. Diluted
earnings per share (EPS) decreased to $1.27 from $1.81 in Q2 fiscal 2025. Adjusted EPS increased to
$1.57 from $1.45 in Q2 fiscal 2025.
Fiscal 2026 outlook:
- We expect fiscal 2026 adjusted EPS growth of approximately 12%, excluding the impact of the 53rd week.
- We expect fiscal 2026 adjusted EPS growth of approximately 16%, including the impact of the 53rd week.
- We are targeting at least $8 billion in share repurchases in fiscal 2026.
- We expect Q3 total segment operating income of approximately $5.3 billion.
- Current demand at our domestic parks and resorts is healthy. However, we are mindful of the macroeconomic uncertainty consumers are facing today.
Fiscal 2027 outlook:
- We continue to expect double-digit growth in adjusted EPS in fiscal 2027, excluding the impact ofthe 53rd week. Note that in Q4 fiscal 2027 we will lap the impact of the 53rd week in Q4 fiscal 2026.
Experiences division
At Experiences, efforts to accelerate growth and drive increased global reach are well underway. The
launch of the Disney Adventure is a meaningful milestone in extending Disney's reach into Asia. Based in
Singapore, we expect this ship to attract Disney fans from markets throughout the region that have
historically not had close proximity to our attractions. Bookings for the Disney Adventure have been very
strong.
Global guests — which aggregates domestic and international parks attendance along with passenger
cruise days — grew 2% compared to the prior-year quarter. Attendance at our domestic parks declined
1% when compared to the prior-year quarter, reflecting, in part, continued softness in international
visitation. However, we are now beginning to lap the attendance headwinds we have faced in the
domestic parks over the past year. While we acknowledge the potential impact of heightened global
macro uncertainty on consumers, we are encouraged by current demand and expect year-over-year
attendance at our domestic parks in Q3 to show improvement compared to Q2 results.
We are also focused on growing reach and engagement in areas that are not yet significant revenue
drivers but are strategically important — including games. Interactive platforms are an increasingly
relevant medium for younger audiences to engage with characters and stories, and our collaboration
with Epic Games is central to our efforts in this space.
Our characters are among the most popular across the Fortnite universe. A recent example of the
strength of our IP among this audience was The Simpsons on Fortnite, launched last November, which
saw 780 million hours played by over 80 million unique players.
Our Experiences business is an important expression of Disney’s ability to translate storytelling into high-
quality, high-return physical environments that deepen loyalty and extend the reach of our brands.
Experiences revenues and operating income in Q2 were fiscal second quarter records, with growth of 7%
and 5%, respectively, relative to Q2 fiscal 2025.
While we incurred some pre-opening costs related to both the Disney Adventure and World of Frozen,
segment operating income growth came in modestly ahead of our guidance, thanks to stronger revenue
growth. Pre-opening expenses for the Disney Adventure and World of Frozen weighed on operating
income growth by roughly two percentage points. Per capita spending at our domestic parks was up 5%
in the quarter, driven by growth in admissions, food and beverage, and merchandise.
We have multiple experience expansions underway using a capital-light model, including working with
established local operators to bring a new cruise ship to Japan and a theme park resort to Abu Dhabi.
The strategic logic of our Abu Dhabi plans is unchanged. Major new theme parks are necessarily long-
term in nature given the lead time of these projects, and this investment approach has consistently
benefited our business.
