Disney Reports Record Billion in Q1 Revenue as Theme Parks Cross Billion Milestone

Disney just dropped its fiscal first quarter earnings for 2026, and the numbers are massive. The company reported roughly $26 billion in total revenue — up 5% year over year — with adjusted earnings per share coming in at $1.63, beating Wall Street expectations of $1.57.

The headline for theme park fans? Disney’s Experiences division crossed the $10 billion quarterly revenue mark for the first time ever. That’s a huge milestone. Domestic parks pulled in $6.91 billion while international parks added another $1.75 billion, each up 7% from the prior year. CFO Hugh Johnston told CNBC that domestic attendance actually rose during the quarter, though international visitation was softer.

On the profitability side, Experiences generated $3.31 billion in operating income — three times the entertainment division’s $1.1 billion. That gap is going to be important when it comes to the CEO succession conversation (more on that in a second).

Net income for the quarter was $2.48 billion, or $1.34 per share, technically down from $2.64 billion in the same period a year earlier. The decline was partly driven by one-time tax charges related to the Fubo deal. Disney also confirmed it’s on track to repurchase $7 billion in stock this fiscal year and expects double-digit growth in adjusted earnings per share.

The streaming business continues to strengthen. Disney said it expects its streaming unit — Disney+ and Hulu — to hit roughly $500 million in operating income in Q2, up about $200 million from the same period last year. The entertainment segment overall saw revenue grow 7% to $11.61 billion.

But here’s the wildcard: the CEO succession. Disney’s board is meeting this week and is expected to vote on Bob Iger’s replacement. Josh D’Amaro, chairman of Disney Experiences, and Dana Walden, co-chairman of Disney Entertainment, are the two frontrunners. Given that the parks division is generating three times the profit of entertainment, I’d say D’Amaro has a pretty compelling case.

Iger himself acknowledged the transition during the call, saying his successor will be handed “a good hand” and that “trying to preserve the status quo was a mistake.” That’s a pretty clear signal that change is coming — and soon.

Despite the strong results, Disney stock dropped about 7% in early trading. The market appears to be reacting to cautious guidance for the Experiences division, which Disney said will see “modest” growth in Q2 operating income due to international headwinds and pre-launch costs for new projects including a Disney Cruise ship and World of Frozen at Disneyland Paris.

The bottom line: Disney’s parks have never been stronger, streaming is finally making real money, and a new CEO is likely just days away from being named. It’s a big moment for the company.