Why Walt Disney Stock Jumped 8.6% Today
Key Points
Disney reported Q2 2026 earnings of $1.57 per share, beating analyst estimates of $1.50.
New CEO Josh D'Amaro pledged to continue Bob Iger's long-term strategy.
Disney stock trades at just 16 times trailing earnings, potentially undervalued for a brand this strong.
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Shares of Walt Disney (NYSE: DIS) rose as much as 8.6% on Wednesday, boosted by an impressive earnings report. The House of Mouse reached that peak around 10:25 a.m. ET, backing down to a still-impressive 7.2% gain at 3:20 p.m. ET.
Image source: Walt Disney.
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New CEO, same winning formula
Disney reported Q2 2026 revenues of $25.2 billion, up 6.5% from the year-ago period. Adjusted earnings rose 8.3% to $1.57 per diluted share. The Street consensus had pointed to earnings near $1.50 per share on top-line sales of roughly $24.9 billion. It's fair to call it a blowout quarter, given Disney's massive scale.
The numbers don't tell the whole story, though. Disney is under new management after about 18 years under Bob Iger's two terms as CEO. Investors applauded new CEO Josh D'Amaro's loyalty to Iger's long-term vision.
"My immediate focus is clear," D'Amaro said on the earnings call. "We will execute with discipline against the plans and commitments we've already communicated to the market, staying focused on the priorities that we believe will unlock value for our shareholders."
The D'Amaro era is off to a strong start
Disney is growing its business across all three reportable segments with a 10% sales jump in the Entertainment segment and 7% growth in Experiences. These core divisions are also growing their operating profits by approximately 5%. The Sports segment is struggling with 2% revenue growth and 5% lower profits, but it's also the smallest section so the fallout on Disney's overall results is minimal.
The company keeps doing "business as usual," building media franchises and vacation experiences around well-known movie worlds. That was the formula long before Bob Iger took the wheel, and should remain Disney's general strategy in the D'Amaro era.
At the same time, Disney's stock has underperformed the market in recent years despite steady sales growth and an unbeatable brand name. Trading at just 16 times trailing earnings today, Walt Disney stock looks like a steal as long as you believe that Josh D'Amaro can keep the good times rolling. And if you worry about D'Amaro matching Bob Chapek's terrible results, I'd argue that the new leader is known for communication and innovation, not cost-cutting and staff conflicts.
Fingers crossed.
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Anders Bylund has positions in Walt Disney. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool has a disclosure policy.
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