Disney's fiscal Q2 results highlighted a strong showing from its Experiences segment, which contributed 56.8% of segment operating income and 37.7% of revenue. The company noted healthy demand at its domestic parks and resorts, despite macroeconomic uncertainties. Meanwhile, Disney's Entertainment SVOD achieved its first double-digit operating margin at 11.4% in Q2, with a goal of reaching at least 10% for fiscal 2026.
"Toy Story 5" has been a significant box office success, grossing $448 million domestically and $573 million internationally, for a worldwide total of $1.022 billion. It marked the biggest debut of the year with $160 million and is the highest-grossing release of the year. This makes it the third movie of 2026 to cross the $1 billion milestone. The film has also surpassed "Toy Story 4" ($1.07 billion) to become the highest-grossing installment in the franchise.
Despite the positive performance in parks and the box office, Disney's stock (NYSE:DIS) lagged the S&P 500, with a weekly gain of only 0.7% compared to the S&P's 1.8% rise. Raymond James maintained an "outperform" rating on Disney but adjusted its price target to $111 from $119, still indicating a 15.4% upside. The company is targeting about 12% fiscal 2026 adjusted EPS growth and plans at least $8 billion in buybacks.
