Disney beats Wall Street expectations propelled by theme parks and streaming

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 with the prior-year period. In particular, Disney saw attendance rise at its domestic theme parks, while “international visitation was softer,” Johnston said. 

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 in earnings per share. 

Overall revenue for the company’s fiscal first quarter was roughly $26 billion, up 5% year over year. 

In Disney’s outlook for fiscal 2026 the company said it’s on track to repurchase $7 billion in 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 projects 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 with 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 prelaunch costs for a new Disney Cruise line and preopening 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, according to people familiar with the matter who spoke on the condition of anonymity about internal matters. The company has previously said it would announce a replacement 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 front-runners in the succession race. 

D’Amaro, however, is running the profit driver for the company.