Walt Disney Co Earnings Summary — Q2 2026

• Revenue grew 6.55% year-over-year to $25.17 billion, showing continued brand strength.
• Net income of $2.47 billion represents a significant decline from the $3.40 billion reported in the same quarter last year.
• Operating income remains robust at $3.55 billion, though it compressed compared to the previous sequential quarter ($3.88 billion).
• Provision for income taxes saw an increase to $902 million from a tax benefit in the prior year's quarter.
• Cost of revenue decreased year-over-year from $14.8 billion to $15.9 billion, indicating rising content or operational costs.
• Management cost-cutting initiatives of over $7.5 billion are supporting operating margins as streaming matures.

Management is targeting double-digit operating margin growth in the Entertainment segment and remains focused on creative excellence following the successful reorganization plan.

Stable

While revenue is growing, the year-over-year net income decline and sequential margin compression offset the positive top-line performance.

The company is transitioning from a high-investment phase to a free-cash-flow harvesting phase, with streaming reaching a profitability inflection point and parks maintaining high pricing power.