Josh D’Amaro used his opening earnings call as Chief Executive Officer to present a new organizing principle for the Walt Disney Company - shifting valuation away from separately managed divisions toward a cohesive, technology-enabled ecosystem that links storytelling, live experiences and commerce.
The market reacted positively to the results and the strategy. Disney’s shares climbed more than 6% after the company reported fiscal second-quarter adjusted earnings per share of $1.57, topping the analyst consensus of $1.50. Revenue for the quarter rose 7% year-over-year to $25.17 billion, above the estimate of $24.85 billion.
Streaming showed notable momentum in the quarter. Subscription video-on-demand (SVOD) revenue grew 13%, an uptick from 11% growth in the prior period. D’Amaro described Disney+ as evolving into a "digital centerpiece" - an interactive online hub intended to link stories, experiences and merchandise and to deepen engagement across both digital and physical touchpoints.
"Our parks, they're essentially the physical centerpiece of the company," D’Amaro said on the call, stressing the complementary relationship between parks and digital offerings. He pointed out that while many park visitors are already Disney+ subscribers, there remain millions of Disney+ customers who have never visited a theme park - a segment the company views as a source of incremental lifetime value. "And similarly, we're building Disney Plus to serve as the immersive, interactive digital centerpiece of the company," he added.
The Disney Experiences segment delivered record second-quarter revenue and operating income, rising 7% and 5% respectively. Management reported that total segment operating income increased 4% to $4.6 billion from $4.4 billion in the second quarter of fiscal 2025. The business exceeded expectations even as domestic attendance declined 1% - a decline management attributed to beginning to lap "known attendance headwinds." Chief Financial Officer Hugh Johnston noted that forward bookings continue to look encouraging, especially at Walt Disney World and across the cruise line.
Underpinning the strategic shift is an aggressive embrace of emerging technologies. D’Amaro highlighted generative AI and other advanced tools as means to enhance creativity and improve operational efficiency. He framed technology chiefly as a way to reduce user friction, pointing to "SportsCenter for You" inside the ESPN app as an early example of personalized, tech-enabled content.
Disney is also trialing AI applications to simplify vacation planning and to optimize labor forecasting at theme parks, areas management believes could deliver long-term value. "We look at advanced technologies, including AI, as a meaningful long-term opportunity for us at Disney," D’Amaro said.
On the organizational side, the company is consolidating creative functions under a "OneDisney" approach designed to streamline decision-making and to ensure intellectual property is maximized across platforms and product lines. This consolidation is intended to accelerate the pace at which stories and characters are deployed across streaming, parks, merchandise and other consumer touchpoints.
To capture younger audiences, Disney is increasing its emphasis on short-form and vertical video formats. D’Amaro observed that "short form and creative content, they've exploded in the past few years," and said the company is responding with initiatives such as vertical video on Disney+ to meet fans where they spend time.
Financial guidance remained steady. Disney reiterated its fiscal 2026 adjusted EPS growth outlook of approximately 12%, excluding the impact of the 53rd week. For the third quarter, management expects total segment operating income of approximately $5.3 billion.
Throughout the call D’Amaro balanced a focus on near-term execution with a technology-forward vision for the company. "Our job is to execute with rigor, to invest with confidence, and connect those strengths in ways that create lasting value," he said, summarizing the administration’s priorities as it moves to align content, technology and physical experiences.
Summary
In his first earnings call as CEO, Josh D’Amaro outlined a strategy that positions Disney+ as the company's interactive digital hub and seeks tighter integration across parks, streaming and merchandise. Disney reported fiscal Q2 adjusted EPS of $1.57 and revenue of $25.17 billion, both above expectations, while streaming revenue growth accelerated and Disney Experiences achieved record revenue and operating income.