Disney (DIS) earnings Q1 2026

Disney reported quarterly revenue and earnings on Monday that topped analyst expectations, lifted by its theme parks, resorts and cruises segment. 

The experiences unit reported more than $10 billion in quarterly revenue for the first time, CFO Hugh Johnston told CNBC. 

Disney’s domestic theme parks recorded $6.91 billion in revenue, while its international parks reported $1.75 billion in revenue, each up 7% compared with the prior-year period. In particular, Disney saw attendance rise at its domestic theme parks, while “international visitation was softer,” Johnston said. 

Here’s how Disney performed in its fiscal first quarter, ended Dec. 27, compared with what Wall Street expected, according to LSEG: 

• Earnings per share: $1.63 adjusted vs. $1.57 expected
• Revenue: $25.98 billion vs. $25.74 billion expected

Net income for the quarter was $2.48 billion, or $1.34 per share, down from $2.64 billion, or $1.40 per share, in the same period a year earlier. Adjusting for one-time items, including tax charges related to a deal with Fubo, Disney reported $1.63 in earnings per share. 

Overall revenue for the company’s fiscal first quarter was roughly $26 billion, up 5% year over year. 

In Disney’s outlook for fiscal 2026 the company said it’s on track to repurchase $7 billion in stock. It also expects double-digit growth in adjusted earnings per share and $19 billion in cash provided by operations. 

For its fiscal second quarter, Disney said it projects its streaming unit – which consists of Disney+ and Hulu – to notch about $500 million in operating income, or an increase of roughly $200 million compared with the same period last year. 

Its experiences unit, however, is expected to see “modest” growth in operating income due to international visitation headwinds at domestic parks, as well as prelaunch costs for a new Disney Cruise line and preopening costs for “World of Frozen” at Disneyland Paris. 

“Overall, our results this quarter reflect our hard work and strategic investments across each of our priorities, and I’m incredibly proud of all that we’ve accomplished over the past three years to set Disney on the path to continued growth,” said CEO Bob Iger on Monday’s call with investors. “I’m inspired and energized by the opportunities ahead for this wonderful company.”

Disney shares were down 7% in early trading following the release.

In the background of Disney’s earnings report on Monday is the question of who will be named the successor to Iger. 

It’s the second time Disney is choosing a replacement for Iger after naming Bob Chapek as CEO in 2020 and then swiftly firing him in 2022, bringing Iger back into the top spot. By that point, Disney’s stock had declined as the company and Iger were faced with improving Disney’s position in the theatrical landscape, as well as uplifting the parks. 

“Turbocharging the parks, bringing streaming to profitability and double-digit margins, and improving the theatrical business, bodes well for a new CEO,” said Johnston. 

Johnston declined to comment on speculation about who will replace Iger.

Disney’s board is meeting this week and is expected to vote on a successor to Iger, according to people familiar with the matter who spoke on the condition of anonymity about internal matters. The company has previously said it would announce a replacement in the first quarter of this year. 

“I also believe that in the world that changes as much as it does, that in some form or another, trying to preserve the status quo was a mistake, and I’m certain that my successor will not do that,” Iger said during Monday’s call. He added the next Disney CEO will be given “a good hand” when it comes to the company’s strength and opportunities that lie ahead.

A Disney spokesperson said in a statement, “The board has not yet selected the next CEO of The Walt Disney Company and once that decision is made, we will announce it.” The spokesperson declined to comment on the timing of the next board meeting.

Two of Iger’s deputies — Josh D’Amaro, chairman of Disney Experiences; and Dana Walden, co-chairman of Disney Entertainment — are seen as front-runners in the succession race. 

D’Amaro, however, is running the profit driver for the company. 

During Disney’s fiscal first quarter the experiences division reported three times the operating income as the entertainment division. Experiences accounted for $3.31 billion in profit, 6% higher than the year-earlier period. 

In contrast, the entertainment division has long highlighted the declining business of Disney’s traditional TV networks and recorded operating income of $1.1 billion, down 35% from the prior year. 

The entertainment segment also includes streaming and theatrical releases. Overall revenue for the unit was $11.61 billion during the period, up 7% year over year. 

The company attributed the unit’s revenue increase to higher subscription and affiliate fees, as well the inclusion of the Fubo transaction into Disney’s earnings. Disney acquired a 70% stake in the internet TV bundle provider in a deal that closed in October. 

Disney has also seen an uptick in its theatrical unit, especially after dominating the box office in 2025. The company noted “Zootopia 2” as well as the new installments in the “Avatar” and “Predator” franchises during the quarter. 

This marked the first quarter that Disney stopped reporting some details for the entertainment segment, such as breaking down revenue and operating income for its linear TV networks, streaming and theatrical businesses. Disney also stopped reporting streaming subscriber numbers this quarter, following Netflix’s lead last year. 

Disney said revenue in its streaming business was up 11% to $5.35 billion during the fiscal first quarter. 

Disney has made various changes on the streaming front recently. Last year, ESPN launched its direct-to-consumer streaming platform, and Disney began its integration of Hulu into Disney+. Investors will be keen for updates on ESPN’s streaming service and any effects of price hikes and changes on Disney+ when executives hold an earnings call at 8:30 a.m. ET.

Disney now breaks out ESPN into the sports segment, separate from its other linear TV networks, movie business, and Disney+ and Hulu. 

Revenue for the sports segment was up 1% to $4.91 billion, while operating income decreased 23% to $191 million. 

The sports segment was weighed down by an increase in programming and production costs for new sports rights agreements, as well as the decline in subscription and affiliate fees due to the loss of traditional bundle subscribers. Advertising revenue grew, however, due to higher rates. 

The unit was also affected by the temporary blackout of Disney’s networks on YouTube TV during the fall, which led to an impact of about $110 million to its operating income.