For Josh D’Amaro, Chief Executive Officer of The Walt Disney Co. since March 18, increasing reach and engagement and improving the user experience on its Disney+, Hulu and ESPN apps is a top priority. But what about the ABC Television Network and ABC Owned Stations? There was little mention of either entity, presently under the scrutiny of the FCC, in Disney’s just-released fiscal Q2 2026 earnings report.
In fact, there’s one mention of ABC in the entire fiscal Q2 review:
We monetize our entertainment television brands — including ABC, Disney Channel, FX, and National Geographic — and our TV studios across both streaming and linear platforms, and to a lesser extent third-party licensing. As consumers shift from linear TV to streaming, we are managing through a monetization transition for these brands.
With that, D’Amaro struck a positive tone in a letter to shareholders and “the broader investment community” co-signed by Chief Financial Officer Hugh Johnston, noting that Disney’s “creative and operational momentum drove strong quarterly results, and we continue to expect growth to accelerate in the second half of the fiscal year.”
At the same time, Johnston made it clear that any discussion of an ESPN spin-off won’t be had in the near future, as Disney is committed under his leadership to “advancing ESPN’s direct-to-consumer future.”
In fiscal Q2 2026, Disney’s dollar generation was positive, as its segments’ operating income in the quarter “modestly exceeded” its prior guidance. Give thanks to stronger-than-expected revenue growth for the outperformance.
DISNEY BY THE NUMBERS: FISCAL Q2 2026
- Revenue increased 7% to $25.2 billion, from $23.6 billion in fiscal Q2 2025.
- Income before income taxes grew by 9% to $3.4 billion, from $3.1 billion.
- Total segment operating income improved by 4%, to $4.6 billion.
- Adjusted Earnings Per Share increased to $1.57 from $1.45.
For Disney, the Entertainment segment is the largest revenue driver, and in fiscal Q2 revenue increased to $11.72 billion from $10.68 billion, as segment operating income rose to $1.34 billion, from $1.26 billion.
Looking ahead, IP investment in franchises ranging from Zootopia and Moana to Toy Story are eyed as ways Disney can “help fuel our streaming, consumer products, experiences, and games businesses over years and generations.” New offerings such as Pixar’s Hoppers are also eyed as key to Disney’s recipe for success.
In the company’s earnings call, pre-submitted analysts questions were addressed, rather than engage in a Q&A session with live interaction. At no point during the call was ABC mentioned.
Excluding the impact of the Fubo transaction, advertising revenue grew approximately 3%.
