Disney beats Wall Avenue expectations propelled by theme parks and streaming – Company Technique & Outlook

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 informed 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 mentioned. 

This is how Disney carried out in its fiscal first quarter, ended Dec. 27, in contrast with what Wall Avenue anticipated, in line with LSEG: 

• Earnings per share: $1.63 adjusted vs. $1.57 anticipated
• Income: $25.98 billion vs. $25.74 billion anticipated

Internet 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 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. 

General 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 mentioned it is on observe to repurchase $7 billion in inventory. 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 mentioned 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 yr. 

Its experiences unit, nonetheless, is anticipated to see “modest” progress in working earnings on account of 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. 

“General, our outcomes this quarter mirror our exhausting work and strategic investments throughout every of our priorities, and I am extremely happy with all that we have achieved over the previous three years to set Disney on the trail to continued progress,” mentioned CEO Bob Iger on Monday’s name with traders. “I am impressed and energized by the alternatives forward for this excellent firm.”

Disney shares had been down 7% in early buying and selling following the discharge.

Within the background of Disney’s earnings report on Monday is the query of who shall 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 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 enhancing the theatrical enterprise, bodes nicely for a brand new CEO,” mentioned 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 line with individuals acquainted with the matter who spoke on the situation of anonymity about inner issues. The corporate has beforehand mentioned it could announce a alternative within the first quarter of this yr. 

“I additionally imagine that on this planet that modifications as a lot because it does, that in some kind or one other, attempting to protect the established order was a mistake, and I am sure that my successor won’t do this,” Iger mentioned throughout Monday’s name. He added the following Disney CEO shall be given “a very good hand” in the case of the corporate’s power and alternatives that lie forward.

A Disney spokesperson mentioned 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’ll 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 operating the revenue driver for the corporate. 

Throughout 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% 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 earnings of $1.1 billion, down 35% from the prior yr. 

The leisure phase additionally consists of streaming and theatrical releases. General income for the unit was $11.61 billion in the course of the interval, up 7% yr over yr. 

The corporate attributed the unit’s income enhance 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 in the course of the quarter. 

This marked the primary quarter that Disney stopped reporting some particulars for the leisure phase, akin 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 yr. 

Disney mentioned income in its streaming enterprise was up 11% to $5.35 billion in the course of the fiscal first quarter. 

Disney has made numerous modifications on the streaming entrance just 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 phase, separate from its different linear TV networks, film enterprise, and Disney+ and Hulu. 

Income 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. Promoting income grew, nonetheless, on account of increased charges. 

The unit was additionally affected by the non permanent blackout of Disney’s networks on YouTube TV in the course of the fall, which led to an impression of about $110 million to its working earnings.