The Walt Disney Company (DIS) Q1 2026 Financial Results Summary
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The Walt Disney Company (DIS) Q1 2026 Financial Results Summary
Release Date: February 2, 2026
The Walt Disney Company reported its earnings for the first quarter of fiscal 2026, ending December 27, 2025. Below is a summary of key financial metrics and other important data from the report:
Financial Highlights
- Revenues:
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Increased 5% to $26.0 billion from $24.7 billion in Q1 fiscal 2025.
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Income Before Income Taxes:
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Comparable to last year at $3.7 billion (up by 1%).
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Total Segment Operating Income:
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Decreased 9% to $4.6 billion from $5.1 billion in Q1 fiscal 2025.
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Diluted Earnings Per Share (EPS):
- Decreased to $1.34 from $1.40 (down 4%).
- Adjusted EPS decreased to $1.63 from $1.76 (down 7%).
Segment Performance
- Entertainment:
- Revenues increased 7% to $11.6 billion compared to Q1 fiscal 2025.
- Operating income decreased 35% to $1.1 billion.
- SVOD (Subscription Video On Demand) revenue increased 11%.
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Segment advertising revenue decreased 6%.
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Sports:
- Revenue increased by 1% to $4.9 billion.
- Operating income decreased 23% to $191 million.
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Advertising revenue grew by 10%, offset by higher programming costs.
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Experiences:
- Record quarterly revenue of $10.0 billion, growth of 6%.
- Operating income of $3.3 billion, an increase of 6%.
- Domestic Parks & Experiences operating income grew by 8%.
- Attendance at domestic parks increased by 1%, and per capita spending grew by 4%.
Cash Flow and Operational Metrics
- Cash Provided by Operations:
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Decreased by 77% to $735 million from $3.2 billion.
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Free Cash Flow:
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Reported at -$2.3 billion, compared to $739 million last year (a decrease of more than 100%).
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Capital Expenditures:
- Increased to $3.0 billion, up from $2.5 billion, with higher spending on cruise ship fleet expansion.
Dividend and Share Repurchase
- The company reported being on track to repurchase $7 billion of stock during fiscal 2026 but did not declare any quarterly dividend in this earnings release.
Guidance and Outlook
- Q2 Fiscal 2026 Expectations:
- Entertainment segment operating income expected to be comparable to Q2 fiscal 2025.
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Projected SVOD operating income of approximately $500 million, up approximately $200 million YoY.
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Fiscal Year 2026 Outlook:
- Anticipating double-digit segment operating income growth compared to fiscal 2025, with significant growth in the second half of the year.
- Forecasting adjusted EPS growth in the double digits compared to fiscal 2025.
Other Key Metrics
- Corporate and Unallocated Shared Expenses:
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Decreased $156 million to $304 million (due in part to a legal settlement in the prior-year quarter).
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Interest Expense:
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Decreased by 25% to $275 million from $367 million.
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Equity in the Income of Investees:
- Totaled $93 million, compared to $92 million the previous year (a 1% increase).
Tax Rates
- Effective Income Tax Rate: Increased to 32.7% from 27.8% due to a non-cash tax charge associated with the Fubo Transaction.
The financial report reflects both growth in revenues and significant challenges, particularly in segment operating income and cash flow, as the company navigates the impacts of restructuring and other operational adjustments.
| Quarter Ended | ||
|---|---|---|
| December 27, 2025 | December 28, 2024 | |
| Revenues | $25,981 | $24,690 |
| Costs and expenses | -22,106 | -20,612 |
| Restructuring and impairment charges | — | -143 |
| Interest expense, net | -275 | -367 |
| Equity in the income of investees | 93 | 92 |
| Income before income taxes | 3,693 | 3,660 |
| Income taxes | -1,209 | -1,016 |
| Net income | 2,484 | 2,644 |
| Net income attributable to | -82 | -90 |
| noncontrolling interests | ||
| Net income attributable to The Walt | $2,402 | $2,554 |
| Disney Company (Disney) | ||
| Earnings per share attributable to | ||
| Disney: | ||
| Diluted | $1.34 | $1.40 |
| Basic | $1.34 | $1.41 |
| Weighted average number of common and | ||
| common equivalent shares outstanding: | ||
| Diluted | 1,793 | 1,818 |
| Basic | 1,786 | 1,812 |
| December 27, 2025 | September 27, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $5,678 | $5,695 |
| Receivables, net | 15,054 | 13,217 |
| Inventories | 2,157 | 2,134 |
| Content advances | 1,336 | 2,063 |
| Other current assets | 1,241 | 1,158 |
| Total current assets | 25,466 | 24,267 |
| Produced and licensed content costs | 31,114 | 31,327 |
| Investments | 8,052 | 8,097 |
| Parks, resorts and other property | ||
| Attractions, buildings and equipment | 81,830 | 82,041 |
| Accumulated depreciation | -47,228 | -48,889 |
| 34,602 | 33,152 | |
| Projects in progress | 7,403 | 6,911 |
| Land | 1,193 | 1,192 |
| 43,198 | 41,255 | |
| Intangible assets, net | 9,429 | 9,272 |
| Goodwill | 74,743 | 73,294 |
| Other assets | 10,087 | 10,002 |
| Total assets | $202,089 | $197,514 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Accounts payable and other accrued | $20,541 | $21,203 |
| liabilities | ||
| Current portion of borrowings | 10,819 | 6,711 |
| Deferred revenue and other | 6,686 | 6,248 |
| Total current liabilities | 38,046 | 34,162 |
| Borrowings | 35,821 | 35,315 |
| Deferred income taxes | 4,126 | 3,524 |
| Other long-term liabilities | 10,088 | 9,901 |
| Commitments and contingencies | ||
| Equity | ||
| Preferred stock | — | — |
| Common stock, $0.01 par value, | ||
| Authorized – 4.6 billion shares, | ||
| Issued – 1.9 billion shares | 60,704 | 59,814 |
| Retained earnings | 60,164 | 60,410 |
| Accumulated other comprehensive loss | -2,900 | -2,914 |
| Treasury stock, at cost, 97 million | ||
| shares at December 27, 2025 and 79 | ||
| million shares at September 27, 2025 | -9,492 | -7,441 |
| Total Disney Shareholders’ equity | 108,476 | 109,869 |
| Noncontrolling interests | 5,532 | 4,743 |
| Total equity | 114,008 | 114,612 |
| Total liabilities and equity | $202,089 | $197,514 |