Disney reported quarterly income and earnings on Monday that topped analyst expectations, lifted by its theme parks, resorts and cruises section.
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. Specifically, Disney noticed attendance rise at its home theme parks, whereas “worldwide visitation was softer,” Johnston stated.
This is how Disney carried out in its fiscal first quarter, ended Dec. 27, in contrast with what Wall Avenue anticipated, in accordance with LSEG:
- Earnings per share: $1.63 adjusted vs. $1.57 anticipated
- Income: $25.98 billion vs. $25.74 billion anticipated
Internet revenue 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 yr earlier. Adjusting for one-time objects, together with tax prices associated to a cope with Fubo, Disney reported $1.63 in earnings per share.
Total income for the corporate’s fiscal first quarter was roughly $26 billion, up 5% yr over yr.
In Disney’s outlook for fiscal 2026 the corporate stated it is on monitor to repurchase $7 billion in inventory. It additionally expects double-digit development in adjusted earnings per share and $19 billion in money supplied by operations.
For its fiscal second quarter, Disney stated it tasks its streaming unit – which consists of Disney+ and Hulu – to notch about $500 million in working revenue, or a rise of roughly $200 million in contrast with the identical interval final yr.
Its experiences unit, nonetheless, is anticipated to see “modest” development in working revenue attributable to 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.
“Total, our outcomes this quarter mirror our laborious work and strategic investments throughout every of our priorities, and I am extremely happy with all that we have completed over the previous three years to set Disney on the trail to continued development,” stated CEO Bob Iger on Monday’s name with traders. “I am impressed and energized by the alternatives forward for this glorious firm.”
Disney shares had been down 7% in early buying and selling following the discharge.
Successor indicators
Within the background of Disney’s earnings report on Monday is the query of who will be named the successor to Iger.
It is the second time Disney is selecting a alternative 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 inventory had declined as the corporate and Iger had been confronted with bettering 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 bettering the theatrical enterprise, bodes nicely for a brand new CEO,” stated Johnston.
Johnston declined to touch upon hypothesis about who will exchange Iger.
Disney’s board is assembly this week and is anticipated to vote on a successor to Iger, in accordance with individuals acquainted with the matter who spoke on the situation of anonymity about inside issues. The corporate has beforehand stated it could announce a alternative within the first quarter of this yr.
“I additionally consider that on this planet that modifications as a lot because it does, that in some type or one other, making an attempt to protect the established order was a mistake, and I am sure that my successor is not going to try this,” Iger stated throughout Monday’s name. He added the following Disney CEO shall be given “a very good hand” with regards to the corporate’s power and alternatives that lie forward.
A Disney spokesperson stated in a press release, “The board has not but chosen the following CEO of The Walt Disney Firm and as soon as that call is made, we are going to announce it.” The spokesperson declined to touch upon the timing of the following board assembly.
Two of Iger’s deputies — Josh D’Amaro, chairman of Disney Experiences; and Dana Walden, co-chairman of Disney Leisure — are seen as front-runners within the succession race.
D’Amaro, nonetheless, is working the revenue driver for the corporate.
Staff have a good time Disneyland Resort’s seventieth Anniversary.
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Throughout Disney’s fiscal first quarter the experiences division reported thrice the working revenue because the leisure division. Experiences accounted for $3.31 billion in revenue, 6% increased 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 revenue of $1.1 billion, down 35% from the prior yr.
Streaming power, sports activities stress
The leisure section additionally contains streaming and theatrical releases. Total income for the unit was $11.61 billion through the interval, up 7% yr over yr.
The corporate attributed the unit’s income improve to increased subscription and affiliate charges, as nicely 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 corporate 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 section, resembling breaking down income and working revenue for its linear TV networks, streaming and theatrical companies. Disney additionally stopped reporting streaming subscriber numbers this quarter, following Netflix’s lead final yr.
Disney stated income in its streaming enterprise was up 11% to $5.35 billion through the fiscal first quarter.
Disney has made varied modifications on the streaming entrance lately. Final yr, ESPN launched its direct-to-consumer streaming platform, and Disney started its integration of Hulu into Disney+. Buyers shall be eager for updates on ESPN’s streaming service and any results of value hikes and modifications on Disney+ when executives maintain an earnings name at 8:30 a.m. ET.
Disney now breaks out ESPN into the sports activities section, separate from its different linear TV networks, film enterprise, and Disney+ and Hulu.
Income for the sports activities section was up 1% to $4.91 billion, whereas working revenue decreased 23% to $191 million.
The sports activities section was weighed down by a rise in programming and manufacturing prices for brand new sports activities rights agreements, in addition to the decline in subscription and affiliate charges as a result of lack of conventional bundle subscribers. Promoting income grew, nonetheless, attributable to increased 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 affect of about $110 million to its working revenue.
