Disney (DIS) stock jumped after reporting adjusted earnings per share that surpassed Wall Street expectations for the third quarter. This marks the second quarterly report under new CEO Josh D, who took over on March 18. The company's performance benefited from strong demand for experiences, and it also exited its stake in A+E Media, which includes channels like Lifetime and A&E.
Conversely, AMD (AMD) shares dropped roughly 6% after hours, even though the company's second-quarter revenue climbed 50% to $11.5 billion, beating analysts' expectations of $11.3 billion. Adjusted earnings also came in strong at $1.66 per share, surpassing the $1.62 forecast. Data center revenue was a key driver, more than doubling to $6.7 billion, fueled by strong sales of AI accelerator chips.
For the third quarter, AMD projected revenue of approximately $13 billion, plus or minus $300 million, which was technically above the average analyst estimate of $12.52 billion from LSEG data. However, the stock's decline indicates that some Wall Street projections had anticipated much higher figures, with some analysts hoping for a forecast closer to $14 billion. Investors appear to be seeking even larger gains and faster revenue growth from AI infrastructure investments, leading to a cautious reaction despite the positive forecast.
This market reaction is a familiar pattern for AMD, which has seen negative market responses after earnings more often than positive ones in recent years. The company's fortunes are increasingly tied to AI infrastructure, with data centers now accounting for more than half of its total revenue. AMD CFO Jean Hu stated that data center sales are expected to accelerate in the second half of 2026, driving stronger overall revenue growth and continued earnings expansion.
