The Walt Disney Company 8-K
NegativeEarningsNew guidance
Higher Entertainment costs and the YouTube TV carriage suspension hit profits, offsetting streaming and Experiences growth.
Filed 2026-02-02 06:42 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q1 FY2026 results with Q2 and FY2026 guidance. Revenue rose 5% Y/Y, while total segment operating income fell 9% and diluted EPS fell 4%. Experiences growth and higher streaming income were offset by higher Entertainment costs and weaker Sports results.
Key Figures
| Metric | Q1 FY2026 | Q1 FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $26.0B | $24.7B | 5% |
| Income before income taxes | $3.69B | $3.66B | 1% |
| Total segment operating income, non-GAAP | $4.6B | $5.06B | (9)% |
| Net income attributable to Disney | $2.40B | $2.55B | (6)% |
| Diluted EPS | $1.34 | $1.40 | (4)% |
| Adjusted EPS, non-GAAP | $1.63 | $1.76 | (7)% |
| Cash provided by operations | $735M | $3.21B | (77)% |
| Free cash flow, non-GAAP | $(2.28)B | $739M | n/m |
- Entertainment segment operating income fell 35% to $1.10B as higher programming, production and marketing costs outweighed revenue growth. Entertainment SVOD revenue rose 11% to $5.35B, and its non-GAAP operating income rose 72% to $450M; Sports operating income fell 23% to $191M, including an ≈$110M adverse impact from the temporary YouTube TV carriage suspension. Experiences operating income rose 6% to $3.31B.
- Cash provided by operations fell on higher tax payments, including payments for FY2025 and part of FY2024 under California wildfire relief, and higher content spending. Investments in parks, resorts and other property rose to $3.01B from $2.47B, mainly for cruise ship expansion and theme park attractions.
- Stock repurchases were $2.03B vs $794M a year earlier; treasury shares were 97M at quarter-end vs 79M at FY2025 year-end.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Entertainment segment operating income | Q2 FY2026 | Comparable to Q2 FY2025 | — | — |
| Other Entertainment businesses operating income | Q2 FY2026 | ≈$0.7B | — | — |
| Entertainment SVOD operating income, non-GAAP | Q2 FY2026 | ≈$500M; ≈$200M increase Y/Y | — | — |
| Sports revenue | Q2 FY2026 | Comparable to Q2 FY2025 | — | — |
| Sports segment operating income | Q2 FY2026 | Decline of $100M Y/Y | — | — |
| Experiences segment operating income | Q2 FY2026 | Modest growth | — | — |
| Entertainment segment operating income | FY2026 | Double-digit growth Y/Y, weighted to H2 | — | — |
| Entertainment SVOD operating margin, non-GAAP | FY2026 | 10% | — | — |
| Sports segment operating income | FY2026 | Low-single-digit growth Y/Y | — | — |
| Experiences segment operating income | FY2026 | High-single-digit growth Y/Y, weighted to H2 | — | — |
| Adjusted EPS, non-GAAP | FY2026 | Double-digit growth Y/Y | — | — |
| Cash provided by operations | FY2026 | $19B, including $1.7B of taxes deferred due to prior-year disaster tax relief | — | — |
| Stock repurchases | FY2026 | On track to repurchase $7B | — | — |
Sports guidance excludes impacts from the NFL equity transaction. FY2026 segment operating income, SVOD operating margin and adjusted EPS guidance excludes the 53rd week; other FY2026 guidance includes it.
Investor Takeaways
- Q2 results will show whether Entertainment and Sports deliver their operating-income outlooks and Experiences achieves modest growth amid the stated cost and visitation headwinds.
- FY2026 results will test the company’s double-digit adjusted EPS growth and $19B cash-from-operations outlook, alongside its planned $7B in stock repurchases.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3