Disney Reports 7% Revenue Growth in Q1 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy DIS?
Source: seekingalpha
- Revenue Growth Highlight: Disney's Q1 revenue increased by 7% year-over-year to $25.17 billion, surpassing market expectations by $320 million, indicating strong performance across multiple business segments, particularly in entertainment and experiences.
- Segment Performance: The entertainment segment saw a 10% revenue increase, including a 4% boost from the Fubo transaction, while higher subscription and affiliate fees contributed to overall revenue growth, reflecting success in content sales and theatrical distribution.
- Operating Income Improvement: Disney reported total segment operating income of $4.60 billion for the quarter, exceeding the consensus estimate of $4.38 billion, showcasing enhanced profitability across all business areas, especially with experiences segment income reaching $2.62 billion.
- Positive Future Outlook: Disney anticipates total segment operating income of approximately $5.3 billion in FY26, with EPS growth of about 12% to $6.64, and plans to execute at least $8 billion in share repurchases in FY26, demonstrating confidence in future growth.
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Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 108.660
Low
123.00
Averages
137.29
High
152.00
Current: 108.660
Low
123.00
Averages
137.29
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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