Major Companies Report Strong Earnings as S&P 500 Shows Broad Growth
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Corporate earnings season is showing robust results, with 84% of S&P 500 companies exceeding estimates. Major firms like Disney, Uber, and CVS Health reported strong bookings, revenue, and raised guidance, signaling broad-based corporate health. Deutsche Bank researchers note all 11 top-level S&P 500 sectors are expected to show year-over-year earnings growth for the first time in four years.
Facts First
- 84% of S&P 500 companies have exceeded earnings estimates approximately two-thirds of the way through the season.
- Disney reported a 7% revenue increase to $25.17 billion for its March quarter, exceeding analyst estimates.
- Uber reported a 25% rise in bookings and CVS Health raised its 2026 earnings guidance following a fall in medical costs.
- All 11 top-level S&P 500 sectors are expected to show year-over-year earnings growth, a first in four years according to Deutsche Bank.
- Disney's streaming business saw operating income surge 88% to $582 million, driven by price hikes.
What Happened
Disney reported revenue of $25.17 billion for the three months ended March 28, a 7% increase, exceeding analyst consensus estimates. Net income for the quarter fell 31% to $2.25 billion, which Disney attributed largely to a higher tax bill, while adjusted earnings per share increased 8% to $1.57. Revenue from Disney+ and Hulu rose 13% to $5.49 billion, with operating income for that segment increasing 88% to $582 million, driven by price hikes implemented in the fall of 2026. Disney Experiences revenue was $9.5 billion, up 7%, with operating income up 5% to $2.6 billion. Separately, Uber reported a 25% rise in bookings, CVS Health raised its 2026 earnings guidance following a sharp fall in medical costs, and Novo Nordisk raised its guidance after its first oral weight loss pill reached 2 million prescriptions.
Why this Matters to You
The broad strength in corporate earnings across sectors suggests underlying economic resilience, which could support job stability and investment returns for many people. Strong performance from companies like Disney and CVS Health may indicate continued consumer spending on entertainment and healthcare, though the mixed results from Restaurant Brands International and Spirit Airlines show some areas of strain. For investors, the widespread earnings beats and raised corporate guidance could be a positive signal for the stock market's health.
What's Next
Disney expects total segment operating income of approximately $5.3 billion for the June 2026 quarter, a 16% year-over-year increase, and forecasts fiscal 2026 adjusted earnings per share growth of approximately 12%. The company is targeting at least $8 billion in share repurchases in the fiscal year ending in September. Upcoming theatrical releases include 'The Mandalorian & Grogu,' 'Toy Story 5,' and the live-action 'Moana,' while streaming premieres will include 'Avatar: Fire and Ash' and the final season of 'The Bear.' However, Disney expects ESPN operating income to decline by 14% for the June quarter due to a double-digit percentage increase in programming expenses.