Walt Disney Co. (Disney (DIS)) shares climbed Wednesday after the company delivered fiscal second-quarter 2026 results that blew past Wall Street's expectations. The magic came from across the board — entertainment, sports, and those ever-popular theme parks all chipped in.

Disney Q2 Earnings Beat Wall Street Estimates

Disney reported adjusted earnings of $1.57 per share for the quarter, comfortably beating the analyst consensus estimate of $1.49. Revenue rose 7% year over year to $25.17 billion, also ahead of the $24.76 billion analysts were looking for.

Entertainment, ESPN And Parks Drive Segment Growth

The entertainment segment — which includes traditional TV networks, streaming, and film — posted revenue of $11.72 billion, up 10% from a year earlier. The sports segment, led by ESPN, grew 2% to $4.61 billion. And the experiences segment, covering theme parks, resorts, and consumer products, generated $9.49 billion, up 7% year over year.

Operating Income, Cash Flow And Buyback Update

Consolidated operating income rose 4% to $4.60 billion. The experiences business led with $2.62 billion in segment operating income, followed by entertainment at $1.34 billion and sports at $652 million. Operating cash flow increased 2.38% to $6.91 billion, while free cash flow hit $4.94 billion for the quarter.

Domestic parks and resorts revenue climbed 6% to $6.92 billion, while international parks revenue jumped 11% to $1.6 billion. Disney also raised its fiscal 2026 share repurchase target to $8 billion from its prior forecast of $7 billion — a nice little bonus for shareholders.

Streaming, ESPN And Experiences Support Growth Outlook

The company said it expects growth to accelerate in the second half of fiscal 2026, supported by higher streaming investments, ESPN's direct-to-consumer strategy, and continued expansion within Disney Experiences. Second-quarter segment operating income modestly exceeded guidance, primarily because revenue growth outpaced expectations.

Disney outlined several long-term growth initiatives, including investments in major intellectual property franchises, international expansion, and technology-driven monetization efforts.

Disney+ Engagement And Sports Partnerships In Focus

Disney highlighted growth drivers including stronger Disney+ engagement, local original programming outside the United States, upcoming franchise film releases, ESPN content agreements, its NFL transaction, expanded MLB relationships, CW Sports on ESPN, and DraftKings account integration.

The company also pointed to future growth opportunities within Disney Experiences, including Disney Adventure, World of Frozen, a planned Japan cruise ship, and a new Abu Dhabi theme park resort. Disney additionally cited its partnership with Epic Games, artificial intelligence opportunities, marketing efficiencies, and margin expansion as potential long-term value drivers.

Fiscal 2026 And 2027 Guidance

For fiscal 2026, Disney expects adjusted earnings per share growth of about 12%, excluding the impact of the 53rd week. Including the extra week, the company projects adjusted EPS growth of about 16%. For the third quarter, Disney expects total segment operating income to reach approximately $5.3 billion. The company said demand across its domestic parks and resorts remains strong, though it continues to monitor macroeconomic uncertainty affecting consumers.

For fiscal 2027, Disney reiterated expectations for double-digit adjusted EPS growth, excluding the impact of the 53rd week.

DIS Price Action: Walt Disney shares were up 4.35% at $104.85 during premarket trading on Wednesday, according to market data.