Disney beats Q2 revenue estimates on content growth, targets $8 bln share buybacks

Walt Disney Co

06/05/2026 11:53

Overview

US entertainment company fiscal Q2 revenue rose 7%, beating analyst expectations

Adjusted EPS for fiscal Q2 increased and beat analyst expectations

Company targets at least $8 bln in share buybacks for fiscal 2026

Outlook

Disney expects fiscal 2026 adjusted EPS growth of about 12%, excluding the 53rd week

Company targets at least $8 bln in share repurchases in fiscal 2026

Disney expects Q3 total segment operating income of about $5.3 bln

Result Drivers

CONTENT PERFORMANCE - Entertainment segment growth driven by new releases like Zootopia 2, which generated strong box office and streaming results

EXPERIENCES EXPANSION - Experiences segment growth supported by launch of Disney Adventure cruise ship and new attractions, with strong bookings in Asia

STREAMING AND SPORTS - ESPN digital subscriber revenue offset declines in linear subscribers; ESPN maintained leading share of U.S. sports consumption

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$25.17 bln
$24.78 bln (22 Analysts)
Q2 Adjusted EPS
Beat
$1.57
$1.49 (22 Analysts)
Q2 EPS
$1.27
Q2 Free Cash Flow
$4.94 bln
Q2 Pretax Profit
$3.37 bln
Q2 Segment operating income
$4.60 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the broadcasting peer group is "buy"

Wall Street's median 12-month price target for Walt Disney Co is $130.00, about 29.4% above its May 5 closing price of $100.48

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)