Disney continues to shine, reporting quarterly results that outstrip expectations. On Wednesday, the company revealed revenue of $25.17 billion, a nice uptick from last year. The theme parks and streaming services played a big role in this success, with park revenue nearing $9.5 billion—up 7% from the previous year.
Despite current economic challenges, including rising oil prices due to geopolitical tensions, Disney’s domestic parks saw solid attendance and higher guest spending. CFO Hugh Johnston told CNBC that consumer demand remains strong, and bookings for the latter half of the year look promising.
Here’s a quick look at Disney’s recent performance:
- Earnings per share (EPS): $1.57 adjusted
- Revenue: $25.17 billion, against Wall Street’s expectation of $24.78 billion
Net income for the quarter was $2.47 billion, a dip from $3.4 billion last year. After considering one-off expenses, adjusted earnings came in at $1.57 per share—slightly above analysts’ predictions.
Disney also shared its outlook for fiscal 2026, targeting significant growth and a notable increase in share buybacks from $7 billion to at least $8 billion. For fiscal 2027, the company expects double-digit earnings growth.
This marks the first quarter under new CEO Josh D’Amaro, who took over from Bob Iger. D’Amaro is focused on investing in Disney’s beloved intellectual properties and enhancing technology, particularly in storytelling. These aspects have been vital for boosting both the streaming and park experiences.
In the entertainment segment—covering traditional TV, streaming, and movies—revenue climbed 10% to $11.72 billion, driven partly by recent hits like “Avatar: Fire and Ash.” Subscription and affiliate fees soared by 14% to $7.8 billion, thanks in part to higher streaming prices.
On the sports side, ESPN reported a 2% revenue increase to $4.61 billion, benefiting from new subscriber fees linked to recent media deals. The launch of ESPN’s new streaming app also generated positive outcomes, helping to balance declines from traditional TV.
As the media landscape shifts, Disney is adapting. Greater focus on streaming and technology, along with strong consumer demand, could help the company navigate current challenges while capitalizing on opportunities ahead.
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