Disney Lifts Buyback Target to $9 Billion as It Reaffirms Double-Digit 2026 EPS Growth
Updated
Updated · The Motley Fool · Aug 5
Disney Lifts Buyback Target to $9 Billion as It Reaffirms Double-Digit 2026 EPS Growth
3 articles · Updated · The Motley Fool · Aug 5
Summary
$9 billion is Disney’s new fiscal 2026 share repurchase target, up from $8 billion last quarter and $7 billion before that, while management kept its double-digit earnings growth outlook unchanged.
Revenue rose 7% to $25.2 billion and adjusted EPS climbed to $2.06 from analyst expectations of $1.86, even as sales came in just below the $25.4 billion consensus.
Experiences led growth with revenue up 10% to nearly $10 billion, helped by higher theme-park admission prices and strong travel demand that lifted resorts and vacations revenue 17%.
Entertainment revenue increased 6% to $11.3 billion, driven by a 12% rise in subscription and affiliate fees, while sports revenue grew 4% to $4.5 billion.
Disney still projects 2026 adjusted EPS growth of 12% or 16% depending on the extra reporting week, and it maintained a double-digit profitability growth forecast for 2027.
With theme park prices rising and international visits dropping, can Disney's aggressive AI investments truly sustain its magical profit margins?
Disney is selling its A+E stake to fund a $9 billion buyback, but could this aggressive cash strategy hinder future streaming battles?
As Disney shifts merchandise to Entertainment and partners with TikTok, is the media giant fundamentally pivoting from traditional parks to digital dominance?