Disney

Disney's fiscal Q2 2026 (quarter ended March 28, 2026) saw total revenue rise 7% year-over-year to $25.2 billion, driven by streaming subscription and affiliate fee growth, parks expansion, and contributions from the Fubo and NFL media asset transactions.

Net income declined to $2.2 billion from $3.3 billion in the prior-year quarter, with diluted EPS falling to $1.27 from $1.81. The drop was primarily due to a large one-time tax benefit in Q2 FY2025 that did not repeat — underlying operating performance improved.

Streaming profitability was a standout, with management on track to deliver a streaming operating margin of at least 10% for fiscal 2026 — a meaningful step forward from the loss-making phase of recent years.

Parks and Experiences contributed solidly despite macro concerns about discretionary spending, with roughly $5 billion in capital investment deployed across the first half of fiscal 2026 toward park expansions, resorts, and a new cruise ship.

On March 17, 2026, Josh D'Amaro was named CEO, succeeding Bob Iger, with Dana Walden appointed President and Chief Creative Officer simultaneously. D'Amaro previously ran Disney's Parks, Experiences and Products division.

Hulu's standalone app is being wound down as Disney executes a full integration of Hulu into Disney+, following the completion of Disney's buyout of Comcast/NBCUniversal's one-third stake in Hulu in mid-2025.

Management has shelved long-running ESPN spinoff discussions under the new CEO, signaling that ESPN will remain within Disney and accelerate its own streaming pivot via ESPN+.

Disney's $1.5 billion strategic stake in Epic Games (Fortnite) is being positioned as a central pillar for growing engagement through a new interactive universe combining Disney IP with gaming.

Bulls point to the streaming turnaround story: Disney+ and Hulu are now profitable, subscriber trends are stabilizing, and the Hulu integration should reduce churn while improving cross-sell. The parks pipeline — Abu Dhabi resort, Japan cruise ship, multiple domestic expansions — offers a long runway of capital-light growth.

Bears focus on linear TV secular decline dragging on the Entertainment segment, the high capital intensity of parks investment, and whether new CEO D'Amaro can replicate Iger's franchise development track record. The stock has underperformed year-to-date despite operational improvements.

The leadership transition is the key near-term variable: D'Amaro is a parks operator by background, not a content executive, raising questions about creative strategy at a moment when franchise quality (Marvel, Star Wars) remains under scrutiny from critics and at the box office.