Walt Disney Co. reported Wednesday lower net profit in its second quarter, while segment operating income increased with higher revenues. Further, the media and entertainment major updated its fiscal 2026 outlook, and maintained fiscal 2027 earnings growth view. The company also said it is targeting at least $8 billion in share repurchases in fiscal 2026.
In pre-market activity, Disney shares were gaining around 5.8 percent to trade at $106.35, after closing Tuesday's regular trading 0.8 percent lower.
Looking ahead for the third quarter, Disney expects total segment operating income of approximately $5.3 billion.
For fiscal 2026, the company now projects adjusted earnings per share growth of around 16 percent including the impact of the 53rd week, and a growth of around 12 percent excluding the impact of the 53rd week.
The company previously expected double digit adjusted earnings per share growth compared to fiscal 2025.
The firm noted that current demand at domestic parks and resorts is healthy, yet it is mindful of the macroeconomic uncertainty consumers are currently facing.
Further ahead, for fiscal 2027, Disney said it continues to expect double-digit growth in adjusted earnings per share, excluding the impact of the 53rd week. In the fourth quarter of fiscal 2027, the company will lap the impact of the 53rd week in fourth quarter of fiscal 2026.
In the second quarter, Disney's net income attributable totaled $2.247 billion or $1.27 per share, down from $3.275 billion or $1.81 per share last year.
Adjusted earnings were $3.040 billion or $1.57 per share for the period, compared to $1.45 per share a year ago.
Total segment operating income increased 4 percent to $4.6 billion from $4.4 billion in the prior year.
The company's revenue for the period rose 6.5 percent to $25.168 billion from $23.621 billion last year.
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