Disney Q1 Profit Beats Estimates on Record Parks Revenue; Shares Slide on Soft Guidance

The Walt Disney Co. (DIS) reported fiscal Q1 2026 earnings on February 2, 2026, with adjusted EPS of $1.63—beating consensus estimates of $1.56–$1.57—and revenue rising 5% year-over-year to $25.98 billion, above forecasts. The "Experiences" segment, including parks and cruises, generated a record $10.0 billion in revenue and contributed nearly 70% of operating income, driven by higher attendance and per-guest spending. Despite the strong results, shares fell nearly 7% in premarket trading after management warned of muted growth in Q2 due to rising sports rights costs and slower international tourist recovery. The Experiences segment posted $3.31 billion in operating income (+6% YoY), while Entertainment profits dropped over 30% to $1.1 billion amid lower political ad revenue and elevated film marketing expenses. However, streaming turned profitable with $450 million in operating income (+72% YoY), with Disney targeting $500 million next quarter. The company reaffirmed double-digit full-year EPS growth and a $70 billion share repurchase program.