Walt Disney Co Q1 FY2026 earnings call

Key Managerial Messages

• Entertainment: Film studios had strong box office in 2025, streaming saw content strength and product enhancements, ESPN had strong sports ratings and acquired NFL assets.
• Experiences: Theme parks had solid start with revenue over $10B, Disneyland Paris to open new Frozen world, Disney Cruise Line launched new ships.
• Overall: Strong start to fiscal year with strategic investments across segments, proud of progress in past three years.

Entertainment Segment

• Film studios generated over $6.5 billion in global box office in 2025, with multiple titles crossing $1 billion, including Avatar: Fire and Ash, Zootopia 2, and Lilo and Stitch. Zootopia 2 was Hollywood's highest-grossing animated film ever. Streaming showed strength with local content investments, product enhancements on Disney Plus, and plans for Sora-generated content. ESPN delivered strong sports ratings and acquired NFL Network and other media assets.
• Revenue Contribution: Film studios' box office success and streaming/ESPN's performance contribute to the entertainment segment.

Experiences Segment

• Quarterly revenue exceeded $10 billion for the first time. Expansion projects are underway at theme parks. Disneyland Paris is set to welcome guests to the new Frozen world. Disney Cruise Line launched the Disney Destiny and prepares for the Disney Adventure ship home-ported in Asia.
• Revenue Contribution: Theme park expansions and cruise line launches drive the experiences segment.

Guidance

• Bookings for the full year are up 5% with weighting toward the back half. No update on fiscal '27 adjusted EPS growth or CapEx guidance; assume no change unless updated. Streaming goal to achieve 10% margin, with 12% revenue growth and over 50% earnings growth in the quarter.

Risks

• Forward-looking statements subject to risks including economic, geopolitical, operating, industry conditions, competition, execution risks, market for advertising, future financial performance, legal and regulatory developments.

Question and Answer

Q: How does the value ascribed to Warner Brothers and HBO impact Disney's strategies to monetize IP?

A: Bob Iger states the value of Disney's IP, including brands and franchises, is highlighted by their own achievements, and they don't feel a need to buy more IP but continue creating their own.

Q: Can you give more color on Walt Disney World's performance and bookings pacing?

A: Hugh Johnston says Walt Disney World had a good quarter with strong attendance and pricing, bookings up 5% weighted toward back half.

Q: How does the OpenAI agreement impact curating and deploying AI content?

A: Bob Iger explains the license agreement allows curating Sora-generated videos on Disney Plus, aiming to enhance engagement with short form content.

Q: Will the EBIT mix be more balanced in the future?

A: Bob Iger is bullish on experiences business growth due to IP and expansion, and sees streaming and movie businesses as bright, but notes it's unclear if mix will be balanced but both have potential for growth.