The Walt Disney Company 8-K
EarningsNew guidanceRestructuring
Stronger-than-expected revenue lifted segment profit above guidance; Experiences set quarterly records while Sports earnings fell.
Filed 2026-05-06 06:40 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 FY2026 results with FY2026 and FY2027 outlook. Revenue rose 7% and total segment operating income rose 4%; Disney said stronger-than-expected revenue growth drove segment operating income modestly above its prior guidance. Adjusted EPS increased, while diluted EPS declined from the prior-year quarter, which included a favorable tax matter.
Key Figures
| Metric | Q2 FY2026 | Q2 FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $25.2B | $23.6B | 7% |
| Income before income taxes | $3.37B | $3.09B | 9% |
| Total segment operating income, non-GAAP | $4.60B | $4.44B | 4% |
| Net income attributable to Disney | $2.25B | $3.28B | -31% |
| Diluted EPS | $1.27 | $1.81 | -30% |
| Adjusted EPS, non-GAAP | $1.57 | $1.45 | 8% |
| Cash provided by operations | $6.91B | $6.75B | 2% |
| Free cash flow, non-GAAP | $4.94B | $4.89B | 1% |
- Segment operating income: Entertainment $1.34B (+6%), Sports $652M (-5%), Experiences $2.62B (+5%). Experiences revenue and operating income were quarterly records; domestic park per-capita spending rose 5%.
- H1 cash provided by operations was $7.65B vs $9.96B, and free cash flow was $2.66B vs $5.63B. Disney cited higher tax payments—including deferred liabilities related to the 2025 California wildfires—and higher content spending; property investment rose to $4.99B from $4.33B.
- H1 share repurchases were $5.50B vs $1.79B; treasury shares increased from 79M to 130M. Q2 restructuring and impairment charges were $239M, including a $147M equity-investment impairment and $92M of severance.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Adjusted EPS growth, excluding 53rd week | FY2026 | ≈12% | — | — |
| Adjusted EPS growth, including 53rd week | FY2026 | ≈16% | — | — |
| Share repurchases | FY2026 | At least $8B | — | — |
| Total segment operating income, non-GAAP | Q3 FY2026 | ≈$5.3B | — | — |
| Entertainment SVOD operating margin, non-GAAP | FY2026 | At least 10% | — | Reaffirmed |
| Sports segment operating income growth, excluding 53rd week | FY2026 | Mid-single-digit percentage | — | — |
| Sports segment operating income | Q3 FY2026 | ≈14% decline Y/Y | — | — |
| Domestic parks attendance | Q3 FY2026 | Y/Y improvement vs Q2 | — | — |
| Adjusted EPS growth, excluding 53rd week | FY2027 | Double-digit growth | — | Reaffirmed |
Investor Takeaways
- Q3 results will show whether total segment operating income reaches the outlook and domestic park attendance improves from Q2.
- Track whether Entertainment SVOD sustains the margin needed to deliver at least 10% for FY2026, amid continued investment in content, technology and marketing.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3