Disney reported $2.1 billion in net income for the first quarter of fiscal 2026, marking a strong increase from $1.2 billion in the same period last year.
The company’s revenue rose 5% to $25.5 billion, while operating income jumped 27%.
The direct-to-consumer (streaming) segment delivered its second consecutive profitable quarter, posting $47 million in operating income, compared with a $216 million loss a year earlier.
Disney+ Core added 7 million subscribers, driven primarily by international markets, bringing the service’s total subscriber base to 123.5 million.
Average revenue per user (ARPU) increased 16% in the U.S. and Canada and 32% internationally, supported by tiered pricing and the continued expansion of ad-supported plans.
Across Disney’s streaming portfolio, total subscribers surpassed 215 million, with ad-supported tiers accounting for more than 45% of new sign-ups.
Linear television networks continued to decline, with revenue down 8% and operating income falling 7%. In contrast, the parks, experiences, and products segment delivered a strong performance, generating $9.4 billion in revenue and $2.2 billion in operating income.
Ahead of ESPN’s planned standalone streaming launch in 2025, Disney is preparing a joint sports streaming venture with Fox and Warner Bros. Discovery.
The company achieved $500 million in annual cost savings, as part of its broader plan to cut $7.5 billion in expenses over the long term.
CEO Bob Iger emphasized that succession planning remains actively underway, reiterating his commitment to ensuring a stable leadership transition before his contract ends in 2026.
