Disney reports 7% revenue growth in Q2, streaming income rises

The company said Entertainment SVOD revenue growth accelerated to 13% in Q2 from 11% in Q1

by e4m Staff
Published: May 8, 2026 8:54 AM | 2 min read

The Walt Disney Company reported a 7% revenue increase for Q2 fiscal 2026, reaching $25.2 billion, driven by growth in its streaming business despite challenges in sports advertising and earnings per share.
Income before taxes rose 9% to $3.4 billion, while total segment operating income increased 4% to $4.6 billion; however, diluted earnings per share fell to $1.27 from $1.81 year-over-year.
The Entertainment SVOD segment, which includes Disney+, Hulu, and Disney+ Hotstar, achieved a 6% rise in operating income to $1.3 billion, with revenue growth accelerating to 13% due to improved monetization strategies.
Disney's sports segment saw a 2% decline in ESPN advertising revenue and a 5% decrease in operating income, attributed to higher sports rights costs and marketing expenses; the company anticipates total segment operating income of approximately $5.3 billion for Q3.

The Walt Disney Company reported a 7% increase in revenue for the second quarter of fiscal 2026, driven by growth in its streaming business, even as sports advertising and earnings per share came under pressure. Revenue for the quarter ending March 28, 2026, rose to $25.2 billion from $23.6 billion a year earlier. Income before income taxes increased 9% to $3.4 billion, while total segment operating income grew 4% to $4.6 billion.

Diluted earnings per share, however, declined to $1.27 from $1.81 in the corresponding quarter last year.

Disney’s Entertainment SVOD business - which includes Disney+, Hulu and Disney+ Hotstar until November 14, 2024 - posted operating income of $1.3 billion, up 6% from $1.26 billion in the year-ago quarter.

The company said Entertainment SVOD revenue growth accelerated to 13% in Q2 from 11% in Q1, helped by improved monetisation following subscription price increases and growth from new international wholesale agreements.

The prior-year quarter included impairment charges linked to the formation of Disney’s India joint venture and content-related write-downs. Disney said these included a $0.14 billion impairment related to the India JV and a $0.11 billion content impairment charge. Tax expense for the earlier period also included a $0.06 billion tax benefit tied to the impairment charges and a non-cash tax charge of $0.24 billion related to the India joint venture formation.

In the sports segment, advertising revenue at ESPN declined 2% year-on-year, partly due to fewer NBA games and the comparison with last year’s 4 Nations hockey tournament. Operating income for the sports business fell 5%, mainly because of higher sports rights costs and increased marketing expenses.

Looking ahead, Disney expects total segment operating income of about $5.3 billion in the third quarter.

Commenting on artificial intelligence, CEO Josh D’Amaro said the company sees long-term opportunities for AI across content production, monetisation, workforce productivity, customer experience and enterprise operations, while maintaining a focus on human creativity and intellectual property protection.

D’Amaro also said Disney will not proceed with its previously planned investment in OpenAI after the reported shutdown of Sora, though the company continues to explore commercial opportunities with OpenAI and other partners.