Walt Disney Co (The)
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.03%.
Did DIS Beat Earnings? Q1 2026 Results
Walt Disney delivered a dual beat in fiscal Q1 2026, posting adjusted EPS of $1.63 against a consensus of $1.58 — a 3.44% beat — while revenue of $25.98 billion topped estimates by 1.49% and grew 5.2% year-over-year, though the headline numbers masked a more complicated picture underneath. The quarter's defining tension was that top-line momentum collided with meaningful margin pressure: Entertainment segment operating income fell 35% as Disney absorbed heavy programming and marketing costs tied to a packed theatrical slate, while a $307 million non-cash tax charge stemming from the Fubo Transaction — in which Disney consolidated Hulu Live TV with FuboTV to gain a 70% stake in the combined entity — weighed on reported earnings. The Experiences segment provided the clearest bright spot, delivering record quarterly revenue of $10.01 billion. Cash flow was the sharpest concern, with operating cash flow plunging 77% to $735 million, leaving <a href="https://247wallst.com/investing/2026/02/02/record-earnings-cant-save-disney-stock-from-100-plunge-heres-why/">free cash flow deeply negative</a>. Management reaffirmed its full-year outlook for double-digit adjusted EPS growth and $19 billion in operating cash flow.
- Record Experiences quarterly revenue of $10.0 billion and segment OI of $3.3 billion
- Strong box office performance from Zootopia 2, Avatar: Fire and Ash, Predator: Badlands and Tron: Ares
- SVOD operating income increased 72% to $450 million with 8.4% margin
- Domestic parks attendance up 1% and per capita spending up 4%
- SVOD subscription fees grew 13% driven by rate increases and subscriber growth
- Sports advertising revenue growth of 10%
- Corporate and unallocated shared expenses decreased $156 million YoY
“We are pleased with the start to our fiscal year, and our achievements reflect the tremendous progress we've made.”
Disney CEO, on the earnings call
Forward Guidance & Outlook
For Q2 fiscal 2026: Entertainment segment OI expected comparable to Q2 fiscal 2025, with SVOD operating income of approximately $500 million (increase of ~$200 million YoY). Sports expects comparable revenue to Q2 fiscal 2025, with OI declining $100 million due to higher rights expenses. Experiences expects modest segment OI growth, tempered by international visitation headwinds at domestic parks, pre-launch costs for Disney Adventure cruise ship, and pre-opening costs for World of Frozen at Disneyland Paris. For full fiscal year 2026: double-digit Entertainment segment OI growth (weighted to H2), SVOD operating margin of 10%, low-single digit Sports OI growth, high-single digit Experiences OI growth (weighted to H2), double-digit adjusted EPS growth, $19 billion in cash from operations, and on track to repurchase $7 billion of stock. FY2026 Q4 includes a 53rd week; segment OI, SVOD margin, and adjusted EPS guidance excludes the additional week benefit.
DIS YoY Financials
DIS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.