The company reported its financial results for Q2, 2026, which saw an 88% increase in streaming income.
Disney reported better-than-expected quarterly results in its first earnings update under new CEO Josh D’Amaro, with revenue up 7% to about US$25.2 billion and adjusted earnings per share reaching US$1.57.
“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”, D’Amaro said in a letter to shareholders.
A major driver was the company’s streaming business, which continues to gain momentum. Operating income in streaming jumped 88%, reflecting stronger performance at Disney+ and Hulu as the company pushes toward a more profitable direct-to-consumer model.
“Streaming highlights in the quarter included the arrival of Predator: Badlands, Disney+’s Hannah Montana 20th Anniversary, Hulu’s Paradise Season 2, and FX’s Love Story: John F. Kennedy Jr. and Carolyn Bessette. Looking ahead, we are excited for the streaming premieres of Avatar: Fire and Ash and Hoppers, as well as the final season of The Bear on Disney+ and Hulu. We are also focused on driving Disney+ growth outside the U.S. and are seeing early success with local originals, including the popular series Battle of Fates in Korea and Rivals in the U.K., which begins its much anticipated second season May 15.”
D’Amaro, who took over in March, outlined a strategy focused on expanding streaming, investing in major franchises, growing parks and experiences, and building ESPN’s direct-to-consumer offering.
“Turning to our Sports segment, we believe in the power of sports to aggregate live, passionate audiences across our platforms. Live sports help attract new subscribers and offer marketers engaged audiences that are increasingly difficult to reach in a fragmented media ecosystem. ESPN is the number one sports media brand in the U.S., the world’s largest sports market. As sports distribution evolves, we believe ESPN is best positioned to serve fans across both linear and direct-toconsumer environments. While our ESPN direct-to-consumer business is just beginning to build, live sports consumption will continue migrating to streaming over time, making ESPN core to our long-term strategy,” he said.
While streaming is now central to Disney’s future, its traditional strengths remain important. Film and TV releases supported entertainment revenue, and the Experiences division stayed resilient despite some softness in attendance. “At Experiences, efforts to accelerate growth and drive increased global reach are well underway”, he said.
Looking ahead, Disney expects continued growth, with D’Amaro emphasizing technology and integration across the company’s platforms, placing streaming at the core of its long-term strategy.
Lastly, the executive spoke about the company’s views on AI, saying: “We view advanced technologies, including AI, as a meaningful long-term opportunity. We see opportunities for AI to play a role across five areas of our business: content creation and production, monetization, workforce productivity, guest and consumer experiences, and enterprise operations. At the same time, we are committed to implementing AI in a way that keeps human creativity at the center of everything we do and respects creators and the value of our intellectual property. 8As widely reported, OpenAI opted to shut down Sora, and as a result we will not proceed with our previously planned investment in the company. We continue to explore potential commercial opportunities with OpenAI and others.”
