Disney Q1 2026 Earnings: Parks Hit $10B, Streaming Profit Jumps, But Overall Income Dips
Disney's revenue grew 5% to $26.0B and streaming and theme parks both expanded, but overall profit dipped as entertainment-segment costs rose.
| Q1 2026 | Reported |
|---|---|
| EPS | $1.34 |
| Revenue | $25.98B |
Figures as reported by the company to the SEC for the quarter ended December 27, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue rose 5% to $26.0 billion from $24.7 billion a year earlier, but diluted earnings per share slipped to $1.34 from $1.40 and adjusted EPS fell to $1.63 from $1.76, meaning profit per share declined even as sales grew.
- Streaming was a bright spot: combined Disney+ and Hulu revenue climbed 11% to $5.35 billion and operating income jumped 72% to $450 million, an 8.4% operating margin. Disney also stopped disclosing Disney+/Hulu subscriber counts this quarter, saying the figures had become ‘less meaningful’ to judging the business.
- Theme parks and experiences topped $10 billion in quarterly revenue for the first time, with both domestic ($6.91 billion) and international ($1.75 billion) parks up 7% from a year ago.
- The entertainment segment (film and TV) grew revenue 7%, but its operating income fell $0.6 billion to $1.1 billion because of higher programming, production and marketing spending.
- Company-wide segment operating income, Disney’s core measure of business profitability, dropped 9% to $4.6 billion from $5.1 billion, showing costs rose faster than revenue overall this quarter.
- Management reaffirmed full fiscal-2026 guidance for double-digit growth in adjusted earnings per share, about $19 billion in cash generated from operations, and said the company remains on track to repurchase $7 billion of its own stock.
- For streaming specifically, Disney projects roughly $500 million of operating income in the next quarter (up about $200 million from a year ago) and is targeting a 10% operating margin for the entertainment streaming business for the full year.
- Looking at the trailing twelve months, Disney’s net profit margin sits at 8.7% and earnings per share are down 24% versus the prior year period even though revenue grew about 4.6% — a longer-run reflection of the same cost pressures, mainly in the entertainment segment, seen in this quarter’s results.
Q1 2026 in context
| Metric | Dec 2025 | Dec 2024 | Change |
|---|---|---|---|
| Revenue | $26.0B | $24.7B | +5.2% |
| Net income | $2.4B | $2.6B | -6.0% |
| Free cash flow | -$2.3B | $739M | -408.3% |
| Diluted EPS | $1.34 | $1.40 | -4.3% |
| Operating margin | 17.7% | 20.5% | -2.8 pts |
| Net margin | 9.2% | 10.3% | -1.1 pts |
Figures for the quarter ended Dec 2025 and the quarter ended Dec 2024, as reported to the SEC.
How the stock took it
Walt Disney Co closed at $112.80 on Jan 30, 2026, the last session before the report, and at $104.22 on Feb 3, 2026, the first session after it — -7.6% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call · verified fundamentals