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News Disney’s Q1 FY26 Earnings Results Webcast

D

DCBaker

Premium Member
Original Poster
The Walt Disney Company will host a live audio webcast to discuss fiscal first quarter 2026 financial results beginning at 8:30 a.m. ET / 5:30 a.m. PT on Monday, February 2, 2026.

Disney will release results before the opening of regular trading on February 2, 2026 and post earnings materials at www.disney.com/investors.
 
D

DCBaker

Premium Member
Original Poster
Financial documents have been released.

Here are a few details from the financial release:

Financial Results for the Quarter:
  • Revenues increased 5% for the quarter to $26.0 billion from $24.7 billion in Q1 fiscal 2025.
  • Income before income taxes for Q1 of $3.7 billion was comparable to Q1 fiscal 2025.
  • Total segment operating income (1) decreased 9% for the quarter to $4.6 billion from $5.1 billion in Q1 fiscal 2025.
  • Diluted earnings per share (EPS) for Q1 decreased to $1.34 from $1.40 in Q1 fiscal 2025. Adjusted EPS (1) for Q1 decreased to $1.63 from $1.76 in Q1 fiscal 2025.
Key Points:
  • Entertainment: Revenue increased 7% compared to Q1 fiscal 2025. Operating income (OI) declined $0.6 billion to $1.1 billion, resulting in Entertainment segment operating margin of 9.5%, as higher programming and production and marketing costs in the quarter more than offset an increase in subscription and affiliate fees and higher theatrical revenue
    • SVOD (2) revenue increased 11% compared to Q1 fiscal 2025 (growth reflects a 1 ppt adverse impact from the inclusion of Star India revenue in the prior-year quarter). SVOD operating income (3) increased $189 million to $450 million, resulting in SVOD operating margin (3) of 8.4%
    • Segment advertising revenue decreased 6% compared to Q1 fiscal 2025, and reflects a net adverse impact of 11 ppts from the inclusion of Star India and higher political advertising in Q1 fiscal 2025 and Fubo in Q1 fiscal 2026
  • Sports: Q1 segment OI of $191 million, a decrease of $56 million compared to Q1 fiscal 2025, as advertising revenue growth of 10% was more than offset by higher programming and production costs and a decrease in subscription and affiliate fees
    • Temporary suspension of YouTube TV carriage had an adverse impact to segment operating income of approximately $110 million
  • Experiences: Record quarterly revenue of $10.0 billion and segment OI of $3.3 billion
    • Domestic Parks & Experiences OI growth of 8%
    • Attendance at our domestic parks was up 1% in the quarter, and per capita spending was up 4%
Guidance and Outlook:
  • Q2 Fiscal 2026:
    • Entertainment:
      • Segment OI comparable to Q2 fiscal 2025
      • SVOD operating income (1) of approximately $500 million, an increase of approximately $200 million compared to Q2 fiscal 2025
    • Sports (2):
      • Comparable revenue to Q2 fiscal 2025, and a decline in segment OI of $100 million reflecting higher rights expenses
    • Experiences:
      • Modest segment OI growth, due to a combination of factors, including international visitation headwinds at our domestic parks, pre-launch costs for the Disney Adventure at Disney Cruise Line and pre-opening costs for World of Frozen at Disneyland Paris
  • Fiscal Year 2026 (3):
    • Entertainment:
      • Double digit segment OI growth compared to fiscal 2025, weighted to the second half of the year
      • SVOD operating margin (4) of 10%
    • Sports (2):
      • Low-single digit segment OI growth compared to fiscal 2025
    • Experiences:
      • High-single digit growth in segment OI compared to fiscal 2025, weighted to the second half of the year
    • Double digit adjusted EPS (5) growth compared to fiscal 2025
    • $19 billion in cash provided by operations (6)
    • On track to repurchase $7 billion of stock
Message From Our CEO:

“We are pleased with the start to our fiscal year, and our achievements reflect the tremendous progress we’ve made,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “We delivered strong box office performance in calendar year 2025 with billion-dollar hits like Zootopia 2 and Avatar: Fire and Ash, franchises that generate value across many of our businesses. As we continue to manage our company for the future, I am incredibly proud of all that we’ve accomplished over the past three years.”

Domestic Parks and Experiences

Operating income at our domestic parks and experiences increased compared to the prior-year quarter primarily due to:
  • Higher volumes attributable to increased passenger cruise days, attendance and occupied room nights. Additional passenger cruise days reflected the launches of the Disney Treasure in December 2024 and the Disney Destiny in November 2025. The increase in attendance benefited from the comparison to the adverse impact of Hurricane Milton in the prior-year quarter.
  • An increase in guest spending
  • Higher costs due to new guest offerings, including the fleet expansion at Disney Cruise Line, inflation and increased operations support costs
Q1-2026.png
 
N

Nevermore525

Well-Known Member
ESPN seems to be valued at around $30B based on NFL deal from 10-Q:

NFL media assets

In January 2026, ESPN acquired NFL Network and certain other media assets owned and controlled by NFL Enterprises LLC, including the NFL RedZone channel’s pay TV distribution and NFL Fantasy (collectively the Specified Assets), from NFL Enterprises LLC in exchange for a 10% noncontrolling interest of ESPN (the NFL Transaction). This transaction will allow the Company to expand audience reach, increase accessibility and flexibility for consumers, drive innovation, and offer more high-quality content at competitive prices. As a result of the NFL Transaction, the Company has an effective 72% interest in ESPN, with Hearst Corporation (Hearst) and NFL Enterprises LLC holding 18% and 10%, respectively. After July 2034, based on the performance of the Specified Assets, the Company may have the right to reacquire (the Exchange Right) the NFL’s interest in ESPN in exchange for a ten-year note at 70% of the then fair market value of the NFL’s interest in ESPN. Alternatively, on a similar time frame, the NFL may have the right to acquire up to a 4% additional equity interest in ESPN at a purchase price equal to 70% of the then fair market value of ESPN.

The estimated fair value of the NFL Transaction is approximately $3 billion. A significant portion of the transaction value will be deferred until late fiscal 2033 and amortized as an expense thereafter, or, in the case that the Company exercises its Exchange Right, would be charged to equity. The Company is in the process of finalizing the valuation of the assets acquired, liabilities assumed and noncontrolling interests.
 
lentesta

lentesta

Premium Member
We had assumed around 3 days of impact from Hurricane Milton in 2024, based on crowd levels that looked like people cancelling trips. That's around 3% of days in a quarter.

I'm guessing a +1% attendance bump in 1Q2026 would've been flat or slightly down without the prior-year hurricane comp. And that would be two consecutive quarters of declining attendance.

Attendance isn't everything*. Earnings are still going up. So they know where to find the revenue.


*until it is.
 
Sirwalterraleigh

Sirwalterraleigh

Premium Member
lentesta said:
We had assumed around 3 days of impact from Hurricane Milton in 2024, based on crowd levels that looked like people cancelling trips. That's around 3% of days in a quarter.

I'm guessing a +1% attendance bump in 1Q2026 would've been flat or slightly down without the prior-year hurricane comp. And that would be two consecutive quarters of declining attendance.

Attendance isn't everything*. Earnings are still going up. So they know where to find the revenue.

*until it is.
Click to expand...
…you’re gonna make people get the grumpy face for breakfast ☹️
 
JD80

JD80

Well-Known Member
lentesta said:
We had assumed around 3 days of impact from Hurricane Milton in 2024, based on crowd levels that looked like people cancelling trips. That's around 3% of days in a quarter.

I'm guessing a +1% attendance bump in 1Q2026 would've been flat or slightly down without the prior-year hurricane comp. And that would be two consecutive quarters of declining attendance.

Attendance isn't everything*. Earnings are still going up. So they know where to find the revenue.


*until it is.
Click to expand...

I haven't put any thought into this, but I suspect you can probably surmise the health of the company and their strategy based on tracking hotel occupancy rates and guest spend along with some attendance numbers. I suspect there is a strategy to get as many guests in hotel rooms as possible, more purposefully than before?

Attendance numbers are down compared to 2019. Attendance numbers are flat/down YoY but occupancy rates with similar available room nights is going up and inching towards 2019 numbers.
 

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