Disney reported quarterly income and earnings on Monday that topped analyst expectations, lifted by its theme parks, resorts and cruises phase.
The experiences unit reported greater than $10 billion in quarterly income for the primary time, CFO Hugh Johnston advised CNBC.
Disney’s home theme parks recorded $6.91 billion in income, whereas its worldwide parks reported $1.75 billion in income, every up 7% in contrast with the prior-year interval. In specific, Disney noticed attendance rise at its home theme parks, whereas “international visitation was softer,” Johnston stated.
Here’s how Disney carried out in its fiscal first quarter, ended Dec. 27, in contrast with what Wall Street anticipated, in response to LSEG:
- Earnings per share: $1.63 adjusted vs. $1.57 anticipated
- Revenue: $25.98 billion vs. $25.74 billion anticipated
Net earnings for the quarter was $2.48 billion, or $1.34 per share, down from $2.64 billion, or $1.40 per share, in the identical interval a 12 months earlier. Adjusting for one-time objects, together with tax prices associated to a cope with Fubo, Disney reported $1.63 in earnings per share.
Overall income for the corporate’s fiscal first quarter was roughly $26 billion, up 5% 12 months over 12 months.
In Disney’s outlook for fiscal 2026 the corporate stated it is on monitor to repurchase $7 billion in stock. It additionally expects double-digit progress in adjusted earnings per share and $19 billion in money supplied by operations.
For its fiscal second quarter, Disney stated it initiatives its streaming unit – which consists of Disney+ and Hulu – to notch about $500 million in working earnings, or a rise of roughly $200 million in contrast with the identical interval final 12 months.
Its experiences unit, nevertheless, is predicted to see “modest” progress in working earnings resulting from worldwide visitation headwinds at home parks, in addition to prelaunch prices for a brand new Disney Cruise line and preopening prices 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,” stated CEO Bob Iger on Monday’s name with buyers. “I’m inspired and energized by the opportunities ahead for this wonderful company.”
Disney shares had been down 7% in early buying and selling following the discharge.
Successor indicators
In the background of Disney’s earnings report on Monday is the query of who can be named the successor to Iger.
It’s the second time Disney is selecting a substitute for Iger after naming Bob Chapek as CEO in 2020 after which swiftly firing him in 2022, bringing Iger again into the highest spot. By that time, Disney’s stock had declined as the corporate and Iger had been confronted with enhancing Disney’s place within the theatrical panorama, in addition to 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,” stated Johnston.
Johnston declined to touch upon hypothesis about who will substitute Iger.
Disney’s board is assembly this week and is predicted to vote on a successor to Iger, in response to individuals aware of the matter who spoke on the situation of anonymity about inside issues. The firm has beforehand stated it will announce a substitute within the first quarter of this 12 months.
“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 stated throughout Monday’s name. He added the subsequent Disney CEO can be given “a good hand” relating to the corporate’s energy and alternatives that lie forward.
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 within the succession race.
D’Amaro, nevertheless, is working the revenue driver for the corporate.
Employees have fun Disneyland Resort’s seventieth Anniversary.
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During Disney’s fiscal first quarter the experiences division reported 3 times the working earnings because the leisure division. Experiences accounted for $3.31 billion in revenue, 6% greater than the year-earlier interval.
In distinction, the leisure division has lengthy highlighted the declining enterprise of Disney’s conventional TV networks and recorded working earnings of $1.1 billion, down 35% from the prior 12 months.
Streaming energy, sports activities strain
The leisure phase additionally consists of streaming and theatrical releases. Overall income for the unit was $11.61 billion through the interval, up 7% 12 months over 12 months.
The firm attributed the unit’s income enhance to greater subscription and affiliate charges, as effectively the inclusion of the Fubo transaction into Disney’s earnings. Disney acquired a 70% stake within the web TV bundle supplier in a deal that closed in October.
Disney has additionally seen an uptick in its theatrical unit, particularly after dominating the field workplace in 2025. The firm famous “Zootopia 2” in addition to the brand new installments within the “Avatar” and “Predator” franchises through the quarter.
This marked the primary quarter that Disney stopped reporting some particulars for the leisure phase, corresponding to breaking down income and working earnings for its linear TV networks, streaming and theatrical companies. Disney additionally stopped reporting streaming subscriber numbers this quarter, following Netflix’s lead final 12 months.
Disney stated income in its streaming enterprise was up 11% to $5.35 billion through the fiscal first quarter.
Disney has made numerous adjustments on the streaming entrance lately. Last 12 months, ESPN launched its direct-to-consumer streaming platform, and Disney started its integration of Hulu into Disney+. Investors can be eager for updates on ESPN’s streaming service and any results of worth hikes and adjustments on Disney+ when executives maintain an earnings name at 8:30 a.m. ET.
Disney now breaks out ESPN into the sports activities phase, separate from its different linear TV networks, film enterprise, and Disney+ and Hulu.
Revenue for the sports activities phase was up 1% to $4.91 billion, whereas working earnings decreased 23% to $191 million.
The sports activities phase was weighed down by a rise in programming and manufacturing prices for brand spanking new sports activities rights agreements, in addition to the decline in subscription and affiliate charges as a result of lack of conventional bundle subscribers. Advertising income grew, nevertheless, resulting from greater charges.
The unit was additionally affected by the short-term blackout of Disney’s networks on YouTube TV through the fall, which led to an impression of about $110 million to its working earnings.