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

Walt Disney Company

Walt Disney Company

DIS

0.00


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


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