The Walt Disney Company Reports First Quarter Earnings for Fiscal 2026

Financial Results - Revenues increased by 5% to $26.0 billion from $24.7 billion in Q1 fiscal 2025 [7] - Income before income taxes for Q1 was $3.7 billion, comparable to Q1 fiscal 2025 [7] - Total segment operating income decreased by 9% to $4.6 billion from $5.1 billion in Q1 fiscal 2025 [7] - Diluted EPS decreased to $1.34 from $1.40 in Q1 fiscal 2025, while adjusted EPS decreased to $1.63 from $1.76 [7] Segment Performance Entertainment - Revenue increased by 7% compared to Q1 fiscal 2025, but operating income declined by $0.6 billion to $1.1 billion, resulting in an operating margin of 9.5% [7][19] - SVOD revenue increased by 11%, with operating income rising by $189 million to $450 million, leading to an operating margin of 8.4% [7][19] - Segment advertising revenue decreased by 6% compared to Q1 fiscal 2025 [7] Sports - Q1 segment operating income was $191 million, a decrease of $56 million compared to Q1 fiscal 2025, despite a 10% growth in advertising revenue [7][24] - The temporary suspension of YouTube TV carriage adversely impacted segment operating income by approximately $110 million [7] Experiences - Achieved record quarterly revenue of $10.0 billion with segment operating income of $3.3 billion [7] - Domestic Parks & Experiences operating income grew by 8%, with attendance up by 1% and per capita spending up by 4% [7] Guidance and Outlook - For Q2 fiscal 2026, Entertainment segment operating income is expected to be comparable to Q2 fiscal 2025, with SVOD operating income projected at approximately $500 million, an increase of about $200 million compared to Q2 fiscal 2025 [8] - Fiscal Year 2026 guidance includes double-digit segment operating income growth compared to fiscal 2025, with an expected SVOD operating margin of 10% [11] - Anticipated cash provided by operations for fiscal 2026 is $19 billion, with plans to repurchase $7 billion of stock [11]