Earnings season delivered two more standout results this week that flew somewhat under the radar amid the noise around Big Tech. The Walt Disney Company (DIS) reported fiscal third-quarter earnings on August 5, 2026, that handily beat Wall Street estimates on the strength of its theme parks and a streaming business that has quietly become one of the most profitable in the industry. Palantir Technologies (PLTR) reported on August 4 and posted numbers that stopped analysts in their tracks — revenue up 93% year over year with commercial growth so fast it raises the question of whether the market is still underpricing the company's potential.
Disney: Streaming Profit More Than Doubled
Disney has spent the past two years rewiring its business model. The results are now showing up clearly in the financials. In Q3 FY2026, which covers the three months ended June 27, 2026, the company reported total revenue of $25.25 billion, up 7% from a year earlier. Adjusted EPS came in at $2.06, beating the Wall Street consensus of $1.88 by $0.18 — a 28% increase from $1.61 in Q3 FY2025. Operating income reached $3.86 billion, and management reaffirmed full-year adjusted EPS growth guidance of approximately 12%.
The two engines driving the beat were Experiences and Entertainment. The Experiences segment — theme parks, cruise lines, and consumer products — generated $9.97 billion in revenue, up 10%, with operating income of $3.02 billion. Domestic park attendance rose 3% and cruise line bookings hit record levels as the company added capacity. The Entertainment segment posted revenues of $11.35 billion and operating income of $1.68 billion, up 64% year over year.
The standout number within Entertainment was streaming. Disney's streaming operations — which include Disney+, Hulu, and ESPN+ — generated $712.00 million in operating income, more than double the $329.00 million reported in the same quarter a year ago. Subscription and affiliate fees rose 12% to $7.55 billion. This is the business Bob Iger spent years rebuilding, and under new CEO Josh D'Amaro it is now contributing meaningfully to the bottom line. Disney also raised its share buyback authorization to at least $9.00 billion, up from $7.00 billion, signaling confidence in the company's free cash flow trajectory.
DIS shares were little changed at $104.91 heading into the weekend, up just 0.22% on the day. The stock sits well below its 52-week high of $119.78 and trades at a P/E of 21.63, which looks inexpensive for a company generating this level of earnings growth. The 52-week low is $92.19. The market cap stands at $182.18 billion. Every one of the 11 analysts covering DIS rates it a Buy — 100% bullish — with an average price target of $126.00 and a street-high of $140.00, representing roughly 20% to 33% upside from current levels.
Palantir: U.S. Commercial Revenue Up 149%
Palantir reported Q2 2026 results on August 4 and the numbers were exceptional by any measure. Revenue came in at $1.94 billion, up 93% from approximately $1.00 billion in Q2 2025, and $130.00 million above the analyst consensus of $1.81 billion. Adjusted EPS was $0.41, beating the $0.34 estimate by 20%. GAAP net income was $1.07 billion, representing a GAAP net income margin of roughly 55%. Operating income hit $912.00 million at a 47% GAAP operating margin, and gross margin was 85%.
The segment breakdown is where the story gets particularly interesting. Total U.S. revenue reached $1.57 billion, up 115% year over year. U.S. commercial revenue surged 149% to $764.00 million — a figure that reflects explosive enterprise adoption of Palantir's AIP platform. U.S. government revenue grew 90% to $809.00 million, driven by defense and intelligence agency contracts tied to AI-powered operations. The adjusted operating margin expanded to 62%, up from around 60% a year ago, demonstrating that growth is not coming at the expense of profitability.
Management raised full-year 2026 revenue guidance to approximately $8.155 billion at the midpoint — nearly $500.00 million above prior guidance. The U.S. commercial revenue target for the full year was lifted to more than $3.42 billion, which would represent at least 134% growth versus 2025.
PLTR surged 10.32% to $172.01 on August 7, extending the post-earnings rally. The stock's 52-week range is $106.37 to $207.52, and the market cap now stands at $394.95 billion. The P/E of 145.77 is elevated on a trailing basis, but the forward picture is dramatically different given the pace of earnings growth. Of 11 covering analysts, 72.7% rate it a Buy or Outperform. The average price target is $196.55, with a median of $215.00 and a street-high of $245.00. Citi raised its price target to $245.00 on August 4 following the print.
The common thread between Disney and Palantir is that both are doing the harder version of success: Disney is profitably growing a business that the market once doubted could ever generate real returns, and Palantir is scaling a platform that now appears to have genuine network effects in enterprise AI. Both are worth watching closely into the fall.
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