Disney Earnings: Streaming Strength, Parks Record
Disney earnings showed streaming gains that lifted entertainment revenue despite lower net income, prompting reassessment of guidance and a $7B buyback.
KEY TAKEAWAYS
- Revenue rose to $26.0 billion, a 5.0% increase and beat estimates.
- Adjusted EPS was $1.63, down from $1.76 but above consensus.
- Streaming growth and box-office hits drove entertainment revenue while total segment operating income fell 9.0%.
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The Walt Disney Company reported Disney earnings for the quarter ended December 27, 2025, on February 2, 2026, showing revenue growth and an adjusted earnings per share beat while net income declined. Streaming advanced, but U.S. parks faced pressure from declining international tourism.
Quarter Results and Profitability
Disney posted quarterly revenue of $26.0 billion, a 5.0% increase from the prior year and above analyst estimates. Adjusted earnings per share fell to $1.63 from $1.76 but exceeded consensus projections. Net income declined to $2.48 billion from $2.6 billion, missing expectations. Income before taxes remained steady at about $3.7 billion year over year, while total segment operating income dropped 9.0% to $4.6 billion from $5.1 billion.
Parks and Streaming Dynamics
The experiences segment, which includes parks and cruises, reached a record $10.0 billion in revenue, up from $9.4 billion, though U.S. parks were weighed down by lower international tourism. The entertainment segment generated $11.6 billion, a 7.0% increase from $10.9 billion, driven by an 11.0% rise in subscription-video-on-demand (SVOD) revenue and strong box-office performance including titles like Zootopia 2. International parks revenue grew 7.0% to $1.8 billion, with operating income up 2.0% to $428 million. Consumer-products revenue remained flat at $1.3 billion.
Management’s outlook for fiscal 2026 targets double-digit growth in entertainment operating income, an SVOD margin near 10.0%, and double-digit adjusted EPS growth compared with fiscal 2025. The company expects roughly $19.0 billion in operating cash flow and plans a $7.0 billion share-repurchase program. For the coming quarter, entertainment operating income is forecast to match the prior year, SVOD operating income is expected to rise by about $200 million to approximately $500 million, sports revenue should remain stable though operating income may decline by about $100 million due to higher rights costs, and the experiences business is projected to show modest growth despite domestic park challenges and pre-launch expenses.
Streaming growth and recent theatrical hits helped lift entertainment revenue, offsetting softer overall segment operating income and net profit, while parks contended with tourism headwinds.
