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Dec 27, 2025
Disney Q1 2026 Earnings Report
Disney reported higher revenue with lower operating income and EPS compared to the prior year quarter.
Key Takeaways
Disney delivered revenue growth driven by Experiences and streaming gains, but higher costs pressured operating income and earnings, while free cash flow turned negative due to elevated investments and tax payments.
Revenue increased year over year, led by strong growth in Experiences.
Total segment operating income declined due to higher programming and production costs.
Adjusted EPS decreased compared to the prior year quarter.
Free cash flow was negative reflecting higher capital expenditures and tax payments.
Revenue by Segment
Forward Guidance
Management guided for improved streaming profitability and earnings growth in fiscal 2026, weighted toward the second half of the year.
Positive Outlook
- Entertainment segment operating income expected to grow double digits for the full fiscal year.
- SVOD operating margin expected to reach approximately 10%.
- Experiences segment operating income expected to grow at a high-single digit rate.
- Adjusted EPS expected to grow double digits year over year.
- Company plans to repurchase approximately $7 billion of stock.
Challenges Ahead
- Sports segment operating income expected to face higher rights expenses.
- International visitation headwinds may impact domestic parks.
- Pre-launch and pre-opening costs expected for cruise and park expansions.
- Fiscal 2026 includes a 53rd week, complicating comparisons.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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