Disney’s stock surged 8% at the market open on May 6, 2026, after the company reported strong Q2 earnings. This came despite a 1% decline in attendance at its US parks under the leadership of new CEO Josh D’Amaro.
In its latest earnings report, Disney announced earnings of $1.57 per share, surpassing analysts’ expectations of $1.50. The company’s revenue for the quarter reached $25.168 billion, exceeding estimates of $25.007 billion.
The results reflect a mixed performance across Disney’s various divisions. While attendance at Disney’s parks fell to $9.5 billion from $10 billion in the previous quarter, the company saw a robust increase in streaming revenue, which rose by 13%. Additionally, Disney’s entertainment division reported a 10% increase in revenue, totaling $11.72 billion.
Josh D’Amaro took over as CEO on March 18 and has already faced challenges. Despite the decline in park attendance, he noted that spending per customer increased by 5%, indicating that those who do visit are spending more.
Key insights from the earnings call:
- The total operating income for Disney was $4.6 billion, up from $4.4 billion a year ago.
- Revenue from Disney’s sports unit experienced a 5% drop in operating income year over year.
- A total of 1,202 institutional investors added shares of Disney stock to their portfolios this past quarter.
D’Amaro acknowledged that while they are beginning to see improvement in international visitor traffic, there is still concern about “the potential impact of heightened global macro uncertainty on consumers.” The company is actively exploring new commercial opportunities with partners like OpenAI to enhance its offerings.
The next steps for Disney include addressing the challenges facing its parks while capitalizing on growth opportunities within its streaming services. Analysts remain optimistic about Disney’s future performance, with nine analysts issuing price targets for the stock—most notably a median target of $130.
