Revenue Growth Across Segments
Total revenue rose 6.5% YoY to $25.2B in Q2 FY2026, up from $23.6B in Q2 FY2025, indicating broad-based demand across Disney's entertainment and experiences businesses.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Disney reported Q2 FY2026 revenue of $25.2B (+6.5% YoY), but net income fell sharply to $2.2B (-31.4% YoY), reflecting higher costs and non-operating headwinds even as operating income grew modestly to $4.6B.
Revenue
$25.17B
+6.55% YoY
EPS (Diluted)
$1.27
-29.83% YoY
Operating Income
$4.6B
+3.76% YoY
Source: SEC XBRL
Walt Disney (DIS) reported Q2 FY2026 revenue of $25.17B, up 6.5% year over year. Operating margin was 18.3%, down 0.5 points from 18.8% a year earlier. DIS's fiscal Q2 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.06 | 1.88 | Beat +9.8% |
| Mar 2026This filing | 1.57 | 1.50 | Beat +4.4% |
| Dec 2025 | 1.63 | 1.59 | Beat +2.8% |
| Sep 2025 | 1.11 | 1.06 | Beat +5.2% |
Adjusted (non-GAAP) EPS of $1.57 versus the $1.50 analyst consensus — a +4.4% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.27.
Compiled by AI from this SEC filing
Total revenue rose 6.5% YoY to $25.2B in Q2 FY2026, up from $23.6B in Q2 FY2025, indicating broad-based demand across Disney's entertainment and experiences businesses.
Source: 10-Q Income Statement
Operating income grew 3.8% YoY to $4.6B, but operating margin compressed slightly from 18.8% to 18.3%, suggesting cost growth is outpacing revenue growth. Net income dropped 31.4% to $2.2B, pointing to significant non-operating charges or tax/interest headwinds below the operating line.
Source: 10-Q Income Statement & Key Ratios
SG&A expenses increased 2.3% YoY to $4.1B, though the pace of growth was slower than revenue, suggesting some operating leverage is being achieved on the selling and administrative cost base.
Source: 10-Q Income Statement
Cumulative fiscal year-to-date operating cash flow fell 23.2% YoY to $7.6B (vs. $10.0B in the prior-year period), while investing outflows increased to -$5.5B, reflecting heavier capital deployment and potentially working capital headwinds.
Source: 10-Q Cash Flow Statement (YTD)
Disney repurchased $5.5B in shares on a YTD basis, more than triple the $1.8B repurchased in the same period last year (+208.1% YoY), signaling management's confidence in the stock and commitment to returning capital to shareholders.
Source: 10-Q Cash Flow Statement (YTD)
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Net income fell 31.4% YoY to $2.2B even as revenue grew 6.5%, implying significant non-operating costs such as interest expense, impairments, or tax items are weighing on profitability. This divergence between operating and net income performance is a key concern for investors assessing earnings quality.
Source: 10-Q Income Statement
Disney's current ratio stands at 0.68, meaning current liabilities of $36.2B substantially exceed current assets of $24.6B. This structural liquidity shortfall requires Disney to continuously refinance short-term obligations and maintain access to capital markets, which could be challenging in a tighter credit environment.
Source: 10-Q Balance Sheet & Key Ratios
Long-term debt increased 5.6% YoY to $38.5B, adding to Disney's already substantial leverage. Combined with declining operating cash flow, this raises questions about Disney's ability to service debt while simultaneously funding content investment and share buybacks.
Source: 10-Q Balance Sheet & Cash Flow Statement
YTD operating cash flow declined 23.2% YoY to $7.6B, a significant drop that could constrain Disney's financial flexibility. If this trend persists, it may force trade-offs between capital expenditures, debt repayment, and shareholder returns.
Source: 10-Q Cash Flow Statement (YTD)
Operating margin declined from 18.8% to 18.3% YoY, and net margin stands at 8.9% — well below what operating performance alone would suggest. Sustained cost pressures in content production, technology, and labor could further erode margins if revenue growth moderates.
Source: 10-Q Key Ratios
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 25.17 $B | 23.62 $B | +6.55% |
Operating Income $B | 4.60 $B | 4.44 $B | +3.76% |
Net Income $B | 2.25 $B | 3.28 $B | -31.39% |
EPS (Basic) $ | 1.27 $ | 1.81 $ | -29.83% |
EPS (Diluted) $ | 1.27 $ | 1.81 $ | -29.83% |
SG&A Expense $B | 4.07 $B | 3.98 $B | +2.31% |
Answers draw on this SEC filing and the data on this page
Disney's Q3 FY2026 revenue grew 7% to $25.2 billion and operating income jumped 21%, but net income halved due to a prior-year one-time Hulu tax benefit.
Disney reported Q1 FY2026 revenue of $26.0B (+5.2% YoY), but operating income fell 9.1% to $4.6B and operating cash flow collapsed 77.1% to $735M, signaling significant cost pressures and working capital headwinds despite top-line growth.
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