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The Walt Disney Company (NYSE: DIS) has announced its financial results for the first quarter of fiscal 2026, showcasing a robust performance that surpassed Wall Street expectations. The entertainment giant reported an adjusted earnings per share (EPS) of $1.63, exceeding the anticipated $1.57.

Additionally, Disney’s revenue reached $25.98 billion, surpassing the expected $25.62 billion. This article delves into the company’s quarterly performance and provides insights into its future guidance.
 

Strong Revenue Growth Lifts Results Despite Higher Costs

In the first quarter of fiscal 2026, The Walt Disney Company delivered impressive financial results that outpaced market expectations. The entertainment behemoth reported an adjusted earnings per share (EPS) of $1.63, surpassing the forecasted $1.57. Additionally, Disney’s revenue amounted to $25.98 billion, exceeding the anticipated $25.62 billion. This marks a strong start to the fiscal year for Disney, highlighting its ability to navigate challenges and capitalize on growth opportunities.

Disney’s revenue growth was driven by a 5% increase compared to the first quarter of fiscal 2025, with total revenues climbing from $24.7 billion to $26.0 billion. The company’s income before income taxes for the quarter was $3.7 billion, comparable to the previous year’s first quarter. However, total segment operating income declined by 9% to $4.6 billion, reflecting higher costs in programming, production, and marketing.

The entertainment segment, a key driver of Disney’s performance, saw a 7% increase in revenue compared to the same period last year. Despite higher programming and production costs, the segment’s operating income remained robust, driven by increased subscription and affiliate fees and higher theatrical revenue. Disney’s streaming services, including Disney+ and Hulu, also contributed significantly to the company’s success, with SVOD revenue increasing by 11% compared to the first quarter of fiscal 2025.
 

Disney Issues Confident Outlook for Q2 and Fiscal 2026

Looking ahead, The Walt Disney Company remains optimistic about its future performance, providing guidance that reflects anticipated growth across its segments. For the second quarter of fiscal 2026, Disney expects entertainment segment operating income to be comparable to the same period last year, with SVOD operating income projected to reach approximately $500 million, an increase of about $200 million compared to Q2 fiscal 2025.

In the sports segment, Disney anticipates comparable revenue to Q2 fiscal 2025, although segment operating income is expected to decline by $100 million due to higher rights expenses. Despite these challenges, the experiences segment is poised for modest growth, driven by factors such as international visitation headwinds at domestic parks and pre-launch costs for new attractions.

For the full fiscal year 2026, Disney forecasts double-digit segment operating income growth in the entertainment segment, with SVOD operating margin projected to reach 10%. The sports segment is expected to experience low-single-digit growth, while the experiences segment anticipates high-single-digit growth in segment operating income, weighted towards the second half of the year. Additionally, Disney projects double-digit adjusted EPS growth compared to fiscal 2025, with $19 billion in cash provided by operations and plans to repurchase $7 billion of stock.

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