BURBANK, California, May 6, 2026, 06:09 PDT
Walt Disney topped expectations Wednesday, with streaming and theme park gains providing a boost for new CEO Josh D’Amaro in his first earnings outing. Revenue hit $25.2 billion, while adjusted earnings per share landed at $1.57 for the quarter ending March 28. Both numbers cleared the bar set by analysts — they were looking for $24.78 billion and $1.49, according to Reuters and LSEG data.
Timing isn’t lost on investors. D’Amaro stepped in for Bob Iger in March, and the focus now is on whether Disney can push growth past belt-tightening as the company faces a grinding transition from cable to streaming, higher sports-rights costs, and choppy travel trends. The board tapped D’Amaro as CEO starting March 18, shifting Dana Walden into the new president and chief creative officer slot.
Disney reported a 7% year-on-year revenue increase, and total segment operating income climbed 4% to $4.6 billion. D’Amaro, along with Chief Financial Officer Hugh Johnston, told shareholders they’re looking for faster growth heading into the back half of the fiscal year. For fiscal 2026, they’re targeting adjusted EPS growth of roughly 12%—not counting an extra reporting week—or closer to 16% if that extra week is included.
The quarter, according to the new management team, revolved around three main goals: boosting intellectual property, expanding the audience, and leveraging technology for stronger returns. D’Amaro and Johnston said Disney sees a “significant opportunity to engage and entertain our fans more deeply”—a message directed at Disney+ subscribers and park and cruise guests alike.
Streaming pulled much of the weight here. Entertainment revenue jumped 10% to $11.7 billion, and operating income headed up 6% to $1.34 billion. Disney’s entertainment SVOD business — that’s its paid streaming like Disney+ and Hulu — delivered $582 million in operating income, an 88% surge, on $5.49 billion revenue.
The parks business managed to hold steady, but pressures were evident. Disney’s Experiences segment—which spans parks, cruises, and consumer products—delivered $9.49 billion in revenue with operating income of $2.62 billion. According to the company, domestic parks saw a lift from increased guest spending and a pickup in cruise passenger days. Still, AP noted a 1% dip in U.S. park attendance, with international travel to parks remaining weak.
Sports dragged. ESPN posted a 5% drop in segment operating income, down to $652 million—higher rights and production costs wiped out revenue gains. Disney projected an even steeper decline for the third quarter, saying sports operating income could slide roughly 14%, pressured by a double-digit jump in programming expenses from new rights deals.
Disney’s numbers set it apart from streaming-centric Netflix and the more leveraged Warner Bros Discovery. While Disney hasn’t hit streaming scale yet, it’s making the case that its franchises can stretch across films, Disney+, video games, cruises, and theme parks instead of sticking to a single platform. In its shareholder letter, the company highlighted upcoming titles like “Zootopia 2,” “Avatar: Fire and Ash,” “The Mandalorian & Grogu,” “Toy Story 5,” and a live-action “Moana.”
Games factor into Disney’s pitch as well. The company said its Simpsons event within Fortnite logged 780 million hours across upwards of 80 million unique players, highlighting its Epic Games partnership as a key channel for connecting with younger consumers. While this hasn’t yet become a major revenue stream for Disney, it’s carving out a more defined spot in the company’s growth narrative.
But the setup isn’t straightforward. Disney described domestic parks demand as “healthy,” yet flagged “macroeconomic uncertainty” hanging over consumers. Misses on travel, softer streaming ad rates, or escalating sports costs could all squeeze the company’s earnings targets. In its forward-looking statement, Disney also listed shifting economic conditions, content and ad competition, regulatory headwinds, tariffs, and tech changes as risks that could alter outcomes.
Disney’s latest quarter hands D’Amaro a stronger case. Streaming’s losses don’t dominate the picture anymore, parks keep generating cash, and ESPN continues to be an asset—just a costly one. The question ahead: can these businesses maintain momentum as consumers start watching prices more closely?
