Disney Surpasses Wall Street Targets as Theme Park Revenue Breaks $10 Billion Record
Burbank, Monday, 2 February 2026.
Disney defied expectations today as its experiences division generated a historic $10 billion in revenue, bolstering the company’s financial standing just as the board prepares to select a new CEO.
A Fiscal Beat Driven by Experiences
The Walt Disney Company (NYSE: DIS) delivered a robust financial performance for its fiscal first quarter ended December 27, 2025, reporting adjusted earnings per share of $1.63 [1][4]. This figure surpassed the $1.57 average estimate projected by analysts, signaling operational resilience despite broader market challenges [1][4]. Total revenue for the quarter reached $25.98 billion, edging past Wall Street’s expectation of $25.74 billion [1]. However, net income for the period settled at $2.48 billion, representing a year-over-year decline of -6.061% from the $2.64 billion reported in the same quarter last year [1]. The earnings beat was largely propelled by the company’s experiences division, which includes theme parks, resorts, and cruises; this unit generated over $10 billion in quarterly revenue for the first time in the company’s history [1].
Streaming Gains and Entertainment Hurdles
While the experiences segment thrived, bolstered by a 1% increase in domestic park attendance and the launch of the Disney Destiny cruise ship [3], the direct-to-consumer streaming business also showed significant momentum. Streaming revenue rose 11% to $5.35 billion, while operating income for the unit surged 72% to $450 million [5]. The division achieved an operating margin of 8.4%, with Disney targeting a 10% margin for the full fiscal year 2026 [5]. Conversely, the entertainment division faced headwinds despite box office successes like Zootopia 2 and Avatar: Fire and Ash [3]. Operating income for this sector fell 35% to $1.1 billion, weighed down by costs associated with the acquisition of a majority stake in FuboTV and increased marketing expenses [3]. Similarly, the sports division saw operating income drop 23% to $191 million, a decline attributed to a $110 million impact from a contract dispute with YouTube TV that resulted in a temporary channel blackout [3].
The Succession Question
These financial results arrive at a critical juncture for Disney’s corporate governance. With current CEO Bob Iger expected to step down before his contract expires at the end of 2026, the company’s board is reportedly meeting this week to vote on his successor [1][2]. Josh D’Amaro, the current Chairman of Disney Experiences, is viewed as the internal favorite for the top role [2]. Iger, reflecting on the quarter, stated he was “incredibly proud of all that we’ve accomplished over the past three years,” framing the strong earnings report as a testament to the company’s progress as it prepares for this leadership transition [2].