Disney's gaming ambitions have just become a lot clearer. Most investors focused on the company's $25.17 billion quarterly revenue. But Disney quietly positioned Epic Games as one of the centerpieces of its future strategy.

During the Q2 fiscal 2026 earnings report of the Mouse House, CEO Josh D’Amaro and CFO Hugh Johnston highlighted the company's partnership with Epic Games while discussing long-term growth plans. As reported by Epic Games Newsroom on X, with the caption to an article by Variety, the CEO and CFO said this:

“Our collaboration with Epic Games is central to our efforts in this space… Disney characters are ‘among the most popular across the Fortnite universe.”

The statement arrived alongside Disney reporting a 7% year-over-year revenue increase and stronger-than-expected earnings results. They also admitted that Disney characters are "among the most popular across the Fortnite universe.”

This detail is proven by one real stat. When ‘The Simpsons’ came on Fortnite last November, it saw a total of 780 million hours of playtime by more than 80 million unique players. These numbers clearly explain why gaming is becoming a core project of Disney, not just a side hustle.

Executives also stressed the fact that major franchises now fuel streaming, merchandise, parks, and gaming simultaneously. Take, for example, Zootopia. It generated $1.9 billion at the global box office before crossing one billion streaming hours on Disney+. This is exactly what Disney now wants to replicate.

The entertainment streaming division has also posted major gains as Disney+ and Hulu revenue climbed 13% year over year, while streaming operating income jumped 88% to $582 million. Investors have reacted positively to the report, thus sending Disney stock up roughly 7-8% following the earnings release.

Disney’s Parks Business Faced a Rare Attendance Slowdown

Disney's earnings might have impressed Wall Street, but the company's parks division showed a softer trend during the quarter. Domestic park attendance dropped 1% year over year. As per CFO Hugh Johnston, the reason behind this decline is reduced international tourism and competition from Universal’s new Epic Universe park in Orlando.

The broader economic concern is another reason. Johnston stated Disney was “mindful” of consumer uncertainty. Especially, rising gas prices continue affecting travel behavior across the United States.

However, guest spending inside parks increased by 5%. As per Disney, admissions, food, and merchandise categories performed stronger spending. This helped the experience division post $9.5 billion in quarterly revenue and $2.6 billion in operating income.

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Written by

Nilendu Brahma

Edited by

Zaid Quraishi