A360
Key Takeaways✦ Atlas AI
01
Disney surpassed Q1 revenue and EPS forecasts.
02
New CEO detailed strategy for future growth.
03
Streaming and parks drove entertainment unit gains.
Atlas AI
Walt Disney Co. reported first-quarter results that topped analyst expectations for both revenue and adjusted earnings per share, and CEO Josh D'Amaro used the earnings call to lay out his strategic priorities asourceser taking the top job in mid-March.
Disney posted adjusted earnings per share of $1.57 on revenue of $25.2 billion for the January-through-March period. Analysts had expected $1.49 in adjusted EPS and $24.78 billion in revenue, according to LSEG. Shares rose nearly 8% in early trading asourceser the report.
Strategy focuses on streaming, sports and experiences
D'Amaro said the company will remain committed to creative excellence, strengthen its streaming business, capitalize on live sports, and continue investing in theme parks and cruise lines.
In its experiences division, which includes parks, cruise ships and consumer products, operating income rose 5%. Disney said the increase was supported by higher guest spending at U.S. theme parks and higher cruise ship volume.
Disney also noted that attendance at its domestic theme parks declined, which it attributed in part to fewer international visitors and competition.
Segment performance mixed for entertainment and ESPN
Disney’s entertainment unit reported a 6% rise in operating income to $1.34 billion, helped by higher subscription and advertising revenue from streaming services including Disney+.
By contrast, the sports division, home of ESPN, posted a 5% decline in operating income to $652 million, which Disney attributed to higher sports rights and production costs.
Disney said it expects adjusted EPS growth of about 12% for fiscal 2026 and reiterated its expectation for double-digit adjusted EPS growth in fiscal 2027.
