Disney beats Wall Street expectations propelled by theme parks and streaming

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 instructed 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 comparison with the prior-year interval. Particularly, 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 Street anticipated, based on 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 fees associated to a cope with Fubo, Disney reported $1.63 earnings per share. 

Total income for Disney’s fiscal first quarter was roughly $26 billion, up 5% yr over yr. 

In Disney’s outlook for fiscal yr 2026 the corporate mentioned it is on observe to repurchase $7 billion 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 mentioned it expects 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 comparison with the identical interval final yr. 

Its experiences unit, nevertheless, is anticipated to see “modest” development in working earnings as a consequence of worldwide visitation headwinds at home parks, in addition to pre-launch prices for a brand new Disney Cruise line and pre-opening prices for “World of Frozen” at Disneyland Paris. 

Within the background of Disney’s earnings report on Monday is the query of who can be named the successor to CEO Bob Iger. 

It is the second time Disney is selecting a substitute for Iger after naming Bob Chapek as CEO in 2020 and then 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 have 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 properly for a brand new CEO,” mentioned Johnston. 

Johnston declined to touch upon hypothesis about who will substitute Iger.

Disney’s board is assembly this week and is anticipated to vote on a successor to Iger, individuals aware of the matter instructed CNBC. The corporate has beforehand mentioned it might announce a successor within the first quarter of this yr. 

Two of Iger’s deputies — Josh D’Amaro, chairman of Disney Experiences; and Dana Walden, co-chairman of Disney Leisure — are seen as frontrunners within the succession race. 

D’Amaro, nevertheless, is operating the revenue driver for the corporate. 

Throughout Disney’s fiscal first quarter the experiences division reported thrice the working earnings because the leisure division. Experiences accounted for $3.31 billion in revenue, 6% larger 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 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 larger subscription and affiliate charges, as properly 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, 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 through the fiscal first quarter. 

Disney has made numerous modifications on the streaming entrance not too long ago. Final yr, ESPN launched its direct-to-consumer streaming platform, and Disney started its integration of Hulu into Disney+. Buyers can be eager for updates on ESPN’s streaming service and any results of worth 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 earnings decreased 23% to $191 million. 

The sports activities section 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 because of the lack of conventional bundle subscribers. Promoting income grew, nevertheless, as a consequence of larger 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 influence of about $110 million to its working earnings.