Disney in the US announced its financial results for the first quarter of fiscal year 2026 (ending December 27, 2025): revenue increased by 5% year-over-year to $26 billion, with pre-tax profits around $3.7 billion. Adjusted earnings per share were $1.63, which, although lower than the same period last year, still exceeded market expectations, boosting the stock price in pre-market trading.
Financial Report Highlights: Steady Revenue Increases, but Profits Lean Towards Parks
In terms of profit structure, the experience business (theme parks, cruises, consumer products, etc.) was the biggest support this season: the segment's revenue reached a record $10 billion, with operating profits of $3.3 billion. The company disclosed a slight increase in domestic park attendance and continued rises in per capita spending, further solidifying its "cash cow" status.
Streaming Continues to Recover: SVOD Profits Rise to $450 Million
In contrast to the weakening of traditional linear TV, the improvement in streaming profitability continues: the company disclosed that operating profits for SVOD (mainly Disney+ and Hulu subscription services) increased by about $189 million year-over-year to $450 million, with related revenues also maintaining double-digit growth and profit margins improving to near the mid to high single-digit range.
Several Wall Street media attributed this season's highlights to the combined effects of "streaming profitability" and "experience business resilience" and believed that such structural improvements could influence market pricing more than single-quarter net profit fluctuations.
Film and Television: Box Office Drives Revenue, But Costs and Advertising Drag Down Profits
The entertainment segment saw revenue grow year-over-year this season, but operating profits declined significantly. The company attributed the pressure to increased content production, programming, and marketing investments, while the advertising sector was also affected by base factors.
Notably, the company's CEO mentioned in a financial report statement that "Zootopia 2" and "Avatar: The Fire and Ashes" are expected to reach "billion-dollar box office" levels in 2025, emphasizing that these leading IPs can create synergy across multiple business lines, including cinemas, streaming, licensing, and parks.
Sports Business Faces Short-Term Pressure: YouTube TV Disruption Causes About $110 Million Impact
In the sports segment, the company disclosed a year-over-year decline in operating profits. In addition to copyright and production cost factors, the short-term disruption of YouTube TV had an adverse impact of about $110 million on performance, becoming one of the season's drawbacks.
Guidance and Succession: Betting on Double-Digit Growth for the Year, New CEO as the Next Variable
Looking ahead, Disney maintains its outlook for "double-digit growth" in adjusted EPS for fiscal year 2026 and set goals for operating cash flow of about $19 billion and the continuation of stock repurchase plans. It also cautioned that the sports segment will be affected by rising copyright fees in the second quarter, and experience business profit growth may also be moderate.
