- Disney’s entertainment arm posted a 7% YoY revenue uplift, but rising costs for programming, production, and marketing outpaced gains.
- The company’s overall revenue grew 5% YoY and exceeded the Street estimates.
- The company reaffirmed expectations for double-digit adjusted EPS growth and $19 billion in operating cash flow in 2026.
The Walt Disney Co. (DIS) announced on Monday that it recorded a 5% year-on-year growth in revenue to $26 billion for the first-quarter fiscal 2026, exceeding the analysts’ consensus estimate of $25.59 billion, according to Fiscal AI data.
Adjusted earnings per share (EPS) of $1.63, narrowed YoY but beat the Street consensus of $1.58. Disney’s entertainment arm posted a 7% YoY revenue uplift, but rising costs for programming, production and marketing outpaced gains, dragging operating profit down to around $1.1 billion.
Subscription video-on-demand (SVOD) revenue grew about 11% YoY, and SVOD operating income expanded by nearly 70% YoY to $450 million, underscoring continued audience engagement.
Disney’s stock traded over 3% higher in Monday’s premarket. On Stocktwits, retail sentiment around the stock changed to ‘extremely bullish’ from ‘neutral’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘high’ levels in 24 hours.
Experiences And Parks Growth
Disney’s experiences division delivered standout performance, generating approximately $10.0 billion in revenue, a 6% YoY growth and nearly $3.3 billion in segment profit.
“We delivered strong box office performance in calendar year 2025 with billion-dollar hits like Zootopia 2 and Avatar: Fire and Ash, franchises that generate value across many of our businesses.’
-Bob Iger, CEO, Walt Disney
Looking ahead to the second quarter (Q2) and full fiscal 2026, Disney forecasts segment profitability roughly in line with year-ago levels in entertainment, SVOD operating income of $500 million, and modest gains in experiences.
For 2026, the company reaffirmed expectations for double-digit adjusted EPS growth and $19 billion in operating cash flow, along with plans to repurchase up to $7 billion in stock.
The media giant stated in a regulatory filing in December that it plans to reveal CEO Bob Iger’s replacement in early 2026.
DIS stock has declined by 1% in the last 12 months.
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