Disney’s (DIS) theme parks and resorts division achieved a historic milestone by generating over $10 billion in quarterly revenue for the first time. The company’s strategic focus on streaming profitability is paying off, with its Disney+ and Hulu unit projected to deliver a massive surge in operating income. Amidst this strong performance, the Disney board is poised to make a pivotal decision on leadership succession for CEO Bob Iger.
The Walt Disney Company delivered a powerful performance in its fiscal first quarter, exceeding Wall Street’s expectations on both revenue and profit. The entertainment giant reported overall revenue of approximately $26 billion, a 5% increase compared to the same period last year. This growth was significantly propelled by its Experiences segment, which includes its global theme parks, resorts, and cruise lines, crossing the $10 billion revenue threshold in a single quarter—an unprecedented achievement for the division.
While net income saw a slight dip to $2.48 billion, or $1.34 per share, down from $2.64 billion a year earlier, the adjusted earnings story tells a more robust tale. Excluding one-time items, earnings per share reached $1.63, handily beating analyst estimates. This strength is setting the stage for an ambitious fiscal 2026, with Disney forecasting double-digit growth in adjusted earnings per share, $19 billion in cash from operations, and a planned $7 billion stock repurchase.
A major highlight of the earnings report was the dramatic turnaround in streaming. Disney projects its combined Disney+ and Hulu streaming business will generate around $500 million in operating income for the current quarter, marking an increase of roughly $200 million year-over-year. This signals a decisive shift toward sustainable profitability in the competitive direct-to-consumer landscape. The Experiences unit, while coming off its record high, anticipates more modest operating income growth ahead due to factors like international travel challenges affecting domestic parks and pre-opening costs for major new investments like the “World of Frozen” land at Disneyland Paris and a new Disney Cruise Line vessel.
The quarterly success comes at a moment of impending transition. Disney’s board is meeting this week and is widely expected to vote on a successor to CEO Bob Iger, who has led the company through a major restructuring. On Monday’s investor call, Iger expressed confidence, stating, “Our results this quarter reflect our hard work and strategic investments… I’m inspired and energized by the opportunities ahead.” The company’s strong financial footing and clear strategic roadmap provide a solid foundation for this upcoming leadership handoff, positioning Disney for its next chapter of growth.
