Walt Disney surpassed revenue expectations due to boosts in its streaming and theme park units.
Its experiences segment, which includes theme parks and cruises, reported revenue growth of 7% year-over-year to nearly US$9.5 billion.
Despite global guest attendance growing 2%, domestic park visitation fell 1% compared to the year prior.
Disney said it remains optimistic that domestic visitation will grow in Q3 despite the impact of heightened global macro uncertainty.
“We continue to see a strong consumer. While there may be some concerns around the macros and specifically around the price of fuel, we have not seen any evidence of that,” Disney CFO Hugh Johnston told CNBC.
Overall revenue was also up 7% to US$25.17 billion, exceeding Wall Street expectations of $24.78 billion.
Net income for the second quarter was $2.47 billion, or $1.27 per share, down from $3.4 billion, or $1.81 per share last year.
When adjusting for one-time items, including ESPN’s acquisition of the NFL Network and other media assets, Disney reported earnings per share of $1.57. This surpasses the $1.49 per share expectation.
The company said it expects full-year adjusted earnings to grow around 12% for fiscal 2026,
It also said it was targeting at least $8 billion in share repurchases for the fiscal year, up from the previously announced $7 billion.
In addition, Disney expects third-quarter total segment income of roughly $5.3 billion.
For its fiscal year 2027, Disney said it expects double-digit growth in adjusted earnings.
Disney’s entertainment segment, which includes traditional TV, streaming and theatrical releases, saw revenue increase by 10% year-over-year to $11.72 billion.
Recent box-office wins, including “Avatar: Fire and Ash,” and “Zootopia 2,” also helped lift the unit’s revenue.
Shares in The Walt Disney Company lifted 7.5% to $108.06 during Wednesday's trade in the United States, before easing 0.5% in after-hours deals. The company's market cap stands at $191.43 billion.
