Disney streaming operating income jumps 88% to $582 million
The Walt Disney Company announced stronger-than-expected Q2 fiscal year 2026 results, with revenue up 7% to $25.2 billion and adjusted EPS at $1.57. The direct-to-consumer division, including Disney+, Hulu, and ESPN streaming operations, saw operating income increase 88% to $582 million, driven by subscriber growth exceeding expectations.
Key Takeaways
- Direct-to-consumer operating income rose 88% year on year to about $582 million across Disney+, Hulu and ESPN streaming operations.
- Fiscal Q2 revenue increased 7% to $25.2 billion, with adjusted EPS of $1.57 beating analyst expectations.
- Disney+ subscriber growth exceeded expectations during the quarter, offsetting continuing declines in the linear television business.
- CEO Josh D’Amaro said the company is focused on streaming profitability, platform integration and personalised audience engagement.
- Disney is deepening integration between Disney+, Hulu and ESPN, while investing in recommendation technology, gaming integration and ESPN’s direct-to-consumer expansion.
Why It Matters
Disney’s direct-to-consumer unit is now materially more profitable, with operating income up 88% to about $582 million in the quarter. That matters because Disney is pairing subscriber momentum at Disney+ with deeper integration across Disney+, Hulu and ESPN, using bundles, advertising and user data as the operating model. The company also flagged recommendation technology, gaming integration and an expanded ESPN direct-to-consumer proposition. The next concrete signal to watch is whether Disney can deliver the roughly 12% adjusted EPS growth it expects for full-year fiscal 2026.
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