Disney released its second-quarter earnings report early Wednesday before the markets opened

Entertainment giant Disney reported its second-quarter earnings on Wednesday morning for the period ending in March, with its stock price rising over 5% in premarket trading to reach $110.15 (a 1.93% increase). 

For the quarter, Disney—marking the transition from former CEO Bob Iger to new CEO Josh D’Amaro—delivered financial results that exceeded Wall Street expectations:

- Adjusted earnings per share totaled $1.57, beating the $1.49 forecasted by analysts surveyed by FactSet.
- Total revenue hit $25.2 billion, slightly above the consensus estimate of $24.9 billion, fueled by a robust 10% growth in its entertainment division.

- Streaming operations generated $582 million in operating profit, surpassing the company’s own projection of $500 million for the quarter.

Looking ahead, Disney anticipates improved attendance year-over-year at its US parks in the third quarter, despite seeing a 1% drop in the second quarter compared to the first. For the full fiscal year, the company reaffirmed its expectation of double-digit growth in adjusted earnings compared to last year.

Josh D’Amaro's early days as CEO have been far from smooth. In March, OpenAI shut down Sora, a project Disney was invested in, while Epic Games—a company also backed by Disney—announced significant layoffs due to declining engagement with Fortnite. Additionally, ABC decided to pull a season of The Bachelorette following controversy. 

More recently, Disney has faced external challenges as well. The Trump administration renewed its public feud with ABC's late-night host Jimmy Kimmel, and the Federal Communications Commission (FCC) initiated an early review of Disney's broadcast licenses. This review, which was not expected until October 2028, has drawn attention, with the National Association of Broadcasters calling it "nearly unprecedented." 

 Disney shares surged following the company's better-than-expected performance in the second quarter

 Shares of Walt Disney Co experienced a notable surge on Wednesday following the release of the company's fiscal second-quarter results.

The entertainment giant exceeded market expectations by reporting stronger-than-anticipated sales and earnings for the quarter. Additionally, Disney provided an optimistic outlook, projecting accelerated growth in the second half of fiscal 2026, and announced an increase in its share repurchase target.

In terms of performance, Disney posted single-digit sales growth for the quarter. Revenue climbed 7% year-over-year, reaching $25.17 billion—higher than the consensus estimate of $24.76 billion. Adjusted earnings per share stood at $1.57, surpassing Wall Street's forecast of $1.49 per share.

 Disney rises after quarterly revenue beat 

 Disney's latest financial results highlight notable growth across various business segments. Revenue from the entertainment division increased 10% year-over-year to $11.72 billion, while the sports segment saw a modest 2% uptick to $4.61 billion. The experiences segment also performed well, growing by 7% to $9.49 billion. Within this, domestic parks and resorts revenue rose by 6% to $6.92 billion, and international parks posted an 11% jump to $1.6 billion.

Since taking the helm in mid-March, new CEO Josh D’Amaro has outlined his vision for Disney, emphasizing plans to strengthen its streaming platforms and invest further in theme parks and cruise lines. This comes at a time when Disney is navigating economic challenges, such as rising crude oil prices and a decline in visits from international tourists. CFO Hugh Johnston noted that another spike in gas prices could significantly impact consumer behavior.

In a forward-looking move, Disney has raised its share repurchase target for fiscal 2026 to $8 billion, up from the previous goal of $7 billion. The company also forecasts accelerating growth in the latter half of the year, fueled by increased streaming investments and sustained progress in Disney Experiences.

Looking ahead to fiscal 2026, Disney is aiming for adjusted earnings growth of approximately 16%, factoring in an extra week in the fiscal calendar. The strategic focus on streaming and theme park expansion is expected to play a key role in achieving these targets.

 Disney's shares

 Disney's shares surged 7.5% on Wednesday, closing at $108.06 after the company unveiled its quarterly results. Over the past month, the stock has gained more than 12%.

Looking ahead, investors are expected to keep an eye on increasing oil prices and Disney's ongoing efforts to expand its theme park business.