BURBANK, Calif., Feb. 2, 2026 — Walt Disney Co. reported first-quarter earnings that exceeded Wall Street forecasts, driven by higher revenue from theme parks and theatrical releases. The company posted revenue of $26 billion for the quarter ended Dec. 27, topping analyst expectations of about $25.7 billion. Income before taxes reached $3.7 billion, also above forecasts, reflecting how parks and related businesses carried overall performance.

The Experiences segment, which includes theme parks, cruise lines and consumer products, generated roughly $10 billion in revenue and nearly $5 billion in operating profit. That figure represented the majority of the company’s operating income for the quarter. Domestic parks benefited from strong attendance and higher guest spending, while cruise operations added incremental revenue through expanded itineraries.

Adjusted earnings per share fell 7 percent from a year earlier to $1.63. Even so, the result came in above the average analyst estimate of $1.57. The quarter showed how revenue from parks and films offset weaker performance in other parts of the business.

Leadership Signals and Financial Priorities

The company also drew attention to leadership plans as Chief Executive Bob Iger prepares to step down later this year. Josh D’Amaro, who leads the Experiences division, is widely viewed as a leading internal candidate to succeed him. His role overseeing parks and resorts places added focus on the segment that delivered most of the quarter’s operating profit.

Disney reiterated its full-year outlook, forecasting double-digit earnings per share growth compared with the prior fiscal year. The company expects to generate about $19 billion in cash from operations and plans to repurchase up to $7 billion in shares during the year, maintaining its commitment to shareholder returns.

Films Drive Revenue but Margins Narrow

Disney’s Entertainment segment reported higher revenue, supported by theatrical releases including “Zootopia 2” and “Avatar Fire and Ash.” Both films performed strongly at the global box office, lifting film revenue and supporting a 7 percent year-over-year increase in segment revenue.

Operating profit in the Entertainment segment declined by about 35 percent from a year earlier. Higher marketing spending for multiple film releases weighed on margins, while lower political advertising revenue also contributed to the decline. The results reflected the cost structure associated with major theatrical releases, even as ticket sales supported revenue growth.

Sports and Streaming Show Mixed Results

Results were mixed in the sports and streaming businesses. Disney’s sports segment posted lower operating income following a two-week contract dispute with YouTube TV that temporarily removed ESPN and other Disney networks from the platform. The disruption reduced revenue by about $110 million and led to a 23 percent drop in operating profit for the segment.

Streaming operations reported stronger results. The direct-to-consumer unit, which includes Disney+, Hulu and ESPN+, recorded a 72 percent increase in operating income to about $450 million. Revenue rose roughly 13 percent from the prior year, reflecting improved performance even as the company did not release updated subscriber figures.

Market Response and Investor Outlook

Shares of Disney traded slightly lower in early trading after the earnings report as investors weighed gains from parks and films against declines in sports and entertainment margins. The stock reaction reflected a measured response to results that exceeded forecasts but showed uneven performance across divisions.

Short-Term Share Reaction: Investors weighed the decline in adjusted earnings per share and weaker results in the sports segment against strong revenue numbers. Some market participants also weighed the cost structure of theatrical releases and ongoing distribution risks tied to sports media rights. 

Focus Areas for the Year Ahead: Attention is expected to remain on leadership succession, performance at domestic parks and progress in streaming profitability. Investors are also watching how Disney manages content spending while maintaining revenue growth across films, parks and direct-to-consumer platforms.

Overall, the quarter highlighted the strength of Disney’s theme parks and film slate in delivering earnings above expectations. While certain segments faced headwinds, revenue from parks and theatres provided the foundation for results that exceeded Wall Street forecasts.