Walt Disney Co Earnings Summary — Q2 2026

• Revenue grew 6.55% year-over-year to $25.17 billion, reflecting continued scale in the streaming and domestic segments.
• Net Income saw a significant 27.5% decline compared to the prior year's second quarter, which had benefited from unique tax or operational items.
• Operating Income remains robust at $3.55 billion, though it declined sequentially from a holiday-heavy Q1.
• Cost of revenue reflects disciplined management, decreasing to $15.9 billion from $16.67 billion in the previous quarter.
• Diluted shares outstanding have trended downward from 1.83B to 1.77B over the last two years, suggesting active buyback execution.
• Pretax income remains healthy at $3.37 billion, despite rising interest expenses compared to historical lows.

Management is focused on achieving double-digit operating margin growth in the Entertainment segment and transition toward a free-cash-flow harvesting phase.

Stable

While net income was down year-over-year, the long-term debt reduction and consistent revenue growth indicate the structural pivot is largely complete.

Disney is expected to hit a major profitability inflection point in 2025-2026, with streaming reaching sustained profitability and debt levels continuing to moderate.