Disney Q1 profit, revenue beat estimates

Overview

• Entertainment giant's fiscal Q1 revenue slightly beat analyst expectations, rising 5% yr/yr

• Adjusted EPS for fiscal Q1 beat analyst expectations, despite a decrease from last year

• Company's Experiences segment achieved record quarterly revenue of $10 bln

Outlook

• Disney expects Q2 SVOD operating income of $500 mln, up $200 mln from Q2 fiscal 2025

• Company anticipates modest Q2 growth in Experiences segment operating income

• Disney forecasts double-digit adjusted EPS growth for fiscal year 2026

Result Drivers

• ENTERTAINMENT COSTS - Higher programming, production, and marketing costs in the Entertainment segment offset revenue gains, leading to a decline in operating income

• SVOD GROWTH - SVOD revenue rose 11%, driven by subscription fee increases and higher operating income, despite adverse impacts from prior-year Star India revenue

• EXPERIENCES RECORD - Experiences segment achieved record revenue of $10 bln, with growth in domestic parks and increased guest spending

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the broadcasting peer group is "buy"

• Wall Street's median 12-month price target for Walt Disney Co is $135.00, about 19.7% above its January 30 closing price of $112.80

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBwbMSG69a

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