Disney’s second-quarter revenue rose 7% to $25.2bn ($24.8bn expected). All divisions were in growth territory, with Entertainment growing at the fastest pace of 10%, largely reflecting higher subscription revenues.
Segment operating profit grew 4% to $4.6bn ($4.2bn expected). This was driven by top-line growth and partly offset by a decline in Sports profitability due to the unfavourable timing of contract renewals.
Free cash flow rose 1% to $4.9bn. Net debt was $41.7bn at period-end.
Third-quarter segment operating income is expected to be around $5.3bn (2025: $4.6bn). Full-year guidance now points to underlying earnings per share growth of 12% (previously double-digit growth).
The group expects to complete at least $8bn of share buybacks this year
The shares rose 3.0% in pre-market trading.
Our view
HL view to follow.
Disney key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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