Disney Q2 Revenue Rises 6.7% to $25.17B; EPS Beats by $0.46
Disney reported fiscal Q2 revenue of $25.17 billion, up 6.7% year-over-year, driven by 7% growth in Experiences, 10% in Entertainment and 1% in Sports; adjusted EPS of $1.57 surpassed estimates by $0.46. Management raised guidance and accelerated returns with higher dividends and buybacks that reduced share count by 2.3%.
1. Q2 Financial Highlights
In the second quarter, Disney posted revenue of $25.17 billion, up 6.7% year-over-year, and delivered adjusted earnings per share of $1.57, outperforming expectations by $0.46.
2. Segment Performance
Growth was driven by a 10% increase in Entertainment, 7% gain in Experiences and a 1% uptick in Sports, reflecting strength across theme parks, content distribution and live sports rights.
3. Guidance and Capital Returns
Management raised full-year revenue and EPS guidance following the quarter and announced an acceleration of shareholder returns, boosting the dividend and repurchasing shares to reduce the outstanding share count by 2.3% year-over-year.
4. Analyst and Investor Reaction
Analysts maintained a moderate buy consensus with 74% of recommendations positive and average price targets implying over 20% upside, while institutional investors acquired shares at a 3-to-1 buying pace after the results.