Disney (DIS) Q1 2026 earnings

Disney The company reported quarterly revenues and profits on Monday that beat analysts’ expectations, boosted by its theme parks, resorts and cruises segment.

The Trials unit posted quarterly revenue of more than $10 billion for the first time, Chief Financial Officer Hugh Johnston told CNBC.

Disney’s domestic theme parks posted revenue of $6.91 billion, while its international parks posted revenue of $1.75 billion, each up 7% compared to the same period the previous year. In particular, Disney has seen an increase in attendance at its domestic theme parks, while “international visitation has been lower,” Johnston said.

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

• EPS: $1.63 was revised versus $1.57 expected
• profit: $25.98 billion compared to $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. After adjusting for one-time items, including tax charges related to its deal with Fubo, Disney reported earnings of $1.63 per share.

Total revenue for Disney’s fiscal first quarter was about $26 billion, up 5% year over year.

In Disney’s forecast for fiscal year 2026, the company said it is on track to buy back $7 billion worth of stock. It also expects double-digit growth in adjusted earnings per share and $19 billion in cash provided by operations.

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

However, its Experiences unit is expected to see “modest” growth in operating income due to headwinds from international visitation at domestic parks, as well as pre-launch costs for the new Disney Cruise line and pre-opening costs for the “World of Frozen” at Disneyland Paris.

In the background of Disney’s earnings report on Monday is the question of who will be appointed as CEO Bob Iger’s successor.

This is the second time Disney has selected a replacement for Iger after hiring Bob Chapek as CEO in 2020 and then quickly firing him in 2022, returning Iger to the top spot. By that point, Disney’s stock had declined as the company and Iger faced improving Disney’s position in the theatrical landscape, as well as upgrading the parks.

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

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

Disney’s board of directors meets this week and is expected to vote on a successor to Iger, people familiar with the matter told CNBC. The company previously said it would announce a successor in the first quarter of this year.

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

However, D’Amaro runs the company’s profit engine.

During Disney’s first fiscal quarter, the Experiences division reported operating income three times what the Entertainment division generated. The experiments generated profits of $3.31 billion, 6% higher than the same period last year.

In contrast, the entertainment division has long highlighted the decline of Disney’s traditional network television business and recorded operating income of $1.1 billion, down 35% from the previous year.

The entertainment sector also includes live streaming and theatrical releases. The unit’s total revenues reached $11.61 billion during the period, up 7% year-over-year.

The company attributed the increase in unit revenues to higher subscription and subsidiary fees, in addition to the inclusion of the Fubo deal in Disney’s profits. Disney acquired a 70% stake in the Internet TV package provider in a deal that closed in October.

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

This marks the first quarter in which Disney stopped reporting certain entertainment segment details, such as revenue breakdown and operating income for its linear television networks, streaming and theatrical business. Disney also stopped reporting streaming subscriber numbers this quarter, trailing Netflix last year.

Disney said revenue from its streaming business rose 11% to $5.35 billion during the fiscal first quarter.

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

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

Sports sector revenues increased by 1% to $4.91 billion, while operating income decreased by 23% to $191 million.

The sports sector has been impacted by increased programming and production costs for new sports rights agreements, as well as lower subscription fees and affiliate fees due to the loss of subscribers to the traditional package. However, advertising revenues grew due to higher prices.

The unit was also affected by Disney Networks’ temporary blackout of YouTube TV during the fall, resulting in an impact of about $110 million to its operating income.