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Walt Disney Co. signage on the floor at the New York Stock Exchange (NYSE) in New York, US, on Monday, Sept. 29, 2025.
Michael Nagle | Bloomberg | Getty Images
Disney reported quarterly revenue and earnings on Monday that topped analyst expectations, lifted by its theme parks, resorts and cruises segment.
The experiences unit reported more than $10 billion in quarterly revenue for the first time, CFO Hugh Johnston told CNBC.
Disney’s domestic theme parks recorded $6.91 billion in revenue, while its international parks reported $1.75 billion in revenue, each up 7% compared to the prior-year period. In particular, Disney saw attendance rise at its domestic theme parks, while “international visitation was softer,” Johnston said.
Here’s how Disney performed in its fiscal first quarter, ended Dec. 27, compared with what Wall Street expected, according to LSEG:
- Earnings per share: $1.63 adjusted vs. $1.57 expected
- Revenue: $25.98 billion vs. $25.74 billion expected
Net income for the quarter was $2.48 billion, or $1.34 per share, down from $2.64 billion, or $1.40 per share, in the same period a year earlier. Adjusting for one-time items, including tax charges related to a deal with Fubo, Disney reported $1.63 earnings per share.
Overall revenue for Disney’s fiscal first quarter was roughly $26 billion, up 5% year over year.
In Disney’s outlook for fiscal year 2026 the company said it’s on track to repurchase $7 billion stock. It also expects double-digit growth in adjusted earnings per share and $19 billion in cash provided by operations.
For its fiscal second quarter, Disney said it expects its streaming unit – which consists of Disney+ and Hulu – to notch about $500 million in operating income, or an increase of roughly $200 million compared to the same period last year.
Its experiences unit, however, is expected to see “modest” growth in operating income due to international visitation headwinds at domestic parks, as well as pre-launch costs for a new Disney Cruise line and pre-opening costs for “World of Frozen” at Disneyland Paris.
Successor signs
In the background of Disney’s earnings report on Monday is the question of who will be named the successor to CEO Bob Iger.
It’s the second time Disney is choosing a replacement for Iger after naming Bob Chapek as CEO in 2020 and then swiftly firing him in 2022, bringing Iger back into the top spot. By that point, Disney’s stock had declined as the company and Iger were faced with improving Disney’s position in the theatrical landscape, as well as uplifting the parks.
“Turbocharging the parks, bringing streaming to profitability and double-digit margins, and improving the theatrical business, bodes well for a new CEO,” said Johnston.
Johnston declined to comment on speculation about who will replace Iger.
Disney’s board is meeting this week and is expected to vote on a successor to Iger, people familiar with the matter told CNBC. The company has previously said it would announce a successor in the first quarter of this year.
Two of Iger’s deputies — Josh D’Amaro, chairman of Disney Experiences; and Dana Walden, co-chairman of Disney Entertainment — are seen as frontrunners in the succession race.
D’Amaro, however, is running the profit driver for the company.
Employees celebrate Disneyland Resort’s 70th Anniversary.
NYSE
During Disney’s fiscal first quarter the experiences division reported three times the operating income as the entertainment division. Experiences accounted for $3.31 billion in profit, 6% higher than the year-earlier period.
In contrast, the entertainment division has long highlighted the declining business of Disney’s traditional TV networks and recorded operating income of $1.1 billion, down 35% from the prior year.
Streaming strength, sports pressure
The entertainment segment also includes streaming and theatrical releases. Overall revenue for the unit was $11.61 billion during the period, up 7% year over year.
The company attributed the unit’s revenue increase to higher subscription and affiliate fees, as well the inclusion of the Fubo transaction into Disney’s earnings. Disney acquired a 70% stake in the internet TV bundle provider in a deal that closed in October.
Disney has also seen an uptick in its theatrical unit, especially after dominating the box office in 2025. The company noted “Zootopia 2” as well as the new installments in the “Avatar” and “Predator” franchises during the quarter.
This marked the first quarter that Disney stopped reporting some details for the entertainment segment, such as breaking down revenue and operating income for its linear TV networks, streaming and theatrical businesses. Disney also stopped reporting streaming subscriber numbers this quarter, following Netflix’s lead last year.
Disney said revenue in its streaming business was up 11% to $5.35 billion during the fiscal first quarter.
Disney has made various changes on the streaming front recently. Last year, ESPN launched its direct-to-consumer streaming platform, and Disney began its integration of Hulu into Disney+. Investors will be keen for updates on ESPN’s streaming service and any effects of price hikes and changes on Disney+ when executives hold an earnings call at 8:30 a.m. ET.
Disney now breaks out ESPN into the sports segment, separate from its other linear TV networks, movie business and Disney+ and Hulu.
Revenue for the sports segment was up 1% to $4.91 billion, while operating income decreased 23% to $191 million.
The sports segment was weighed down by an increase in programming and production costs for new sports rights agreements, as well as the decline in subscription and affiliate fees due to the loss of traditional bundle subscribers. Advertising revenue grew, however, due to higher rates.
The unit was also affected by the temporary blackout of Disney’s networks on YouTube TV during the fall, which led to an impact of about $110 million to its operating income.
