Disney Reports Q1 Earnings Beat Fueled by Exceptional Theme Parks Growth

Walt Disney Co. crushed Wall Street expectations in Q1 FY26 (fiscal quarter ended Dec 27, 2025), propelled by its powerhouse theme parks division. Total revenue climbed 5% YoY to $26 billion, exceeding the $25.7 billion consensus, while pre-tax income hit $3.7 billion against $3.5 billion projected.

The Experiences segment (parks, cruises, products) shone brightest with a record $10 billion revenue 72% of ~$5 billion operating profit aided by easy comps post-Hurricane Milton closures last year at Walt Disney World. Entertainment revenue rose 7% to $11.6 billion, fueled by blockbusters like "Zootopia 2" ($1.8B global) and "Avatar: Fire and Ash" ($1.4B).

Streaming turned a corner with $450 million op income (+72%), revenue up 13% to $4.4 billion across Disney+, Hulu, ESPN. CEO Bob Iger reaffirmed FY26 double-digit EPS growth, $19B cash flow, $7B share repurchases amid CEO succession buzz (Josh D'Amaro tipped).

Key Highlights

• Revenue: $26B total (+5% YoY), topping $25.7B forecast.
• ​EPS Adjusted: $1.63 (beat $1.57 est., -7% YoY).
• ​Parks/Experiences: Record $10B revenue, $3.3B op income (72% company total).
• Entertainment: $11.6B revenue (+7%); "Zootopia 2" $1.8B global box office.
• ​Streaming: $4.4B revenue (+13%), op income +72% to $450M (Disney+/Hulu/ESPN).
• ​FY26 Outlook: Double-digit EPS growth, $19B op cash flow, $7B buybacks.

​
Parks' resilience signals consumer strength despite international headwinds.

Sources: Reuters, CNBC, WSJ, WDWMagic