Disney Surpasses Expectations Driven by Strong Theme Park Performance

Walt Disney Co. reported quarterly revenue and earnings that surpassed analyst expectations, primarily driven by its robust theme parks, resorts, and cruises segment.

For the first time, Disney's experiences unit achieved over $10 billion in quarterly revenue.

The company's domestic theme parks generated $6.91 billion in revenue, while international parks contributed $1.75 billion. Both segments marked a 7% increase year-over-year. Domestically, theme parks experienced a rise in attendance, although international visitation was softer.

Fiscal First Quarter Financial Snapshot

For the fiscal first quarter, which concluded on December 27, Disney delivered strong financial performance:

• Adjusted Earnings Per Share (EPS): $1.63 (vs. $1.57 expected)
• Revenue: $25.98 billion (vs. $25.74 billion expected)

Net income for the quarter was $2.48 billion, or $1.34 per share, a decrease from $2.64 billion, or $1.40 per share, in the previous year. After adjusting for one-time items, including tax charges related to a Fubo deal, adjusted earnings per share reached $1.63. Overall revenue for the fiscal first quarter was approximately $26 billion, representing a 5% increase year-over-year.

Outlook and Future Projections

Looking ahead, Disney has provided guidance for future performance:

Fiscal Year 2026:

• Anticipates repurchasing $7 billion in stock.
• Projects achieving double-digit growth in adjusted earnings per share.
• Expects to generate $19 billion in cash from operations.

Fiscal Second Quarter:

• The company projects its streaming unit (Disney+ and Hulu) to reach approximately $500 million in operating income, an increase of about $200 million compared to the same period last year. However, the experiences unit is expected to see