Disney beat Wall Street expectations early Wednesday and raised its share buyback target to $8 billion as the company leaned on stronger streaming, theme park and entertainment results in its fiscal second quarter. The report was Josh D’Amaro’s first quarterly earnings update since taking over as chief executive two months ago.
The Walt Disney Co. reported revenue of $25.2 billion for the quarter ended March 3, up 7 percent, while segment operating income rose 4 percent to $4.6 billion. The company also said it expects adjusted earnings per share to grow 12 percent this year, a sign that management is betting its current strategy can keep delivering even as investors keep close watch on whether the rebound can last.
Entertainment was the biggest driver. Revenue in the division climbed 10 percent to $11.7 billion, and operating income rose 6 percent to $1.3 billion. Experiences, which includes Disney’s parks and consumer products, posted revenue of $9.5 billion, up 7 percent, and operating income of $2.6 billion, up 5 percent. Sports brought in $4.6 billion in revenue, up 2 percent, but operating income fell 5 percent to $652 million.
In its earnings materials, Disney executives laid out three pillars at the heart of the company’s plan: franchises, Disney+ and artificial intelligence. The company highlighted The Mandalorian and Grogu, Toy Story 5 and the live-action Moana as examples of the kinds of established properties it expects to keep driving growth. At the same time, executives said original ideas remain part of the mix, citing Pixar’s Hoppers as a strong example of the company’s push for new intellectual property.
That balancing act runs through the rest of the strategy. Disney executives said all creative from films and TV shows to streaming originals and games now reports into Dana Walden, a move meant to tighten control across the company’s storytelling business. They also said Disney+ is being reshaped to become more engaging, more personalized and more central to how fans experience the company’s brands, with recent changes to the user interface and personalization contributing to higher engagement. Disney recently launched Verts, its vertical video product, and noted the popularity of its characters in Fortnite as it tries to meet audiences where they already are.
The company also pointed to technology as a longer-range growth area. Disney said advanced technologies, including AI, are a meaningful long-term opportunity and said it sees AI opportunities across five areas of the business. It also said it continues to explore potential commercial opportunities with OpenAI and others. The pitch is ambitious, but it arrives as Disney is still proving that new tools can deepen the value of old franchises rather than distract from them.
Disney said its Abu Dhabi park plans remain unchanged, a reminder that some of its biggest bets are still tied to projects that take years to unfold. For now, the numbers gave the company a clean start under D’Amaro. The harder test will be whether the mix of familiar franchises, streaming improvements and technology bets can keep the dis stock story moving in the same direction when the next quarter arrives.