Disney announced impressive quarterly earnings and revenues on Monday, exceeding analyst expectations, largely driven by its theme parks, resorts, and cruises segment. For the first time, the experiences unit surpassed $10 billion in quarterly revenue, according to CFO Hugh Johnston.
The domestic theme parks generated $6.91 billion in revenue, while international parks contributed $1.75 billion, marking a 7% increase for both segments compared to the same period last year. Johnston indicated that while attendance at domestic parks was strong, international visitation saw a decline.
In the fiscal first quarter ending December 27, Disney reported adjusted earnings per share of $1.63, surpassing the expected $1.57. Revenue reached approximately $25.98 billion, slightly above the anticipated $25.74 billion. However, net income for the quarter was $2.48 billion, translating to $1.34 per share, a drop from $2.64 billion, or $1.40 per share, in the same quarter the previous year. When accounting for one-time items, including tax implications from a deal with Fubo, the adjusted earnings per share stood at $1.63.
Overall revenue climbed 5% year over year, marking a solid performance for Disney during this quarter. Looking ahead to fiscal 2026, the company anticipates completing a stock buyback of $7 billion and expects double-digit growth in adjusted earnings per share, along with $19 billion in cash from operations.
For the second fiscal quarter, Disney’s streaming division, comprising Disney+ and Hulu, is projected to generate around $500 million in operating income, reflecting a $200 million boost from the previous year. However, the experiences unit may face only “modest” growth in operating income due to challenges such as lower international visitor numbers at domestic parks, alongside prelaunch expenses for a new Disney Cruise line and preopening costs for the “World of Frozen” at Disneyland Paris.
CEO Bob Iger expressed pride in the company’s achievements, stating, “Overall, our results this quarter reflect our hard work and strategic investments across each of our priorities… I’m inspired and energized by the opportunities ahead for this wonderful company.” Despite the positive earnings report, Disney’s shares fell about 7% in early trading following the announcement.