Disney Reports 5 Percent Increase in Q1 Revenues

The Walt Disney Company’s revenues increased 5 percent year-over-year in Q1 to $26 billion, with entertainment revenues rising 7 percent to $11.6 billion.

The increase in entertainment revenues was attributable to higher subscription and affiliate fees, the Fubo transaction and subscriber growth, as well as an increase in content sales revenues due to higher theatrical distribution revenues.

SVOD revenues rose 11 percent to reach $5.3 billion. Advertising revenues for the segment decreased 6 percent.

Sports revenues were nearly stable, with a 1 percent increase to $4.9 billion. Operating income for the segment dropped 23 percent to $191 million due to an increase in programming and production costs, a decrease in subscription and affiliate fees attributable for fewer subscribers and decreased as ad revenue growth due to higher rates. The temporary suspension of YouTube TV carriage also had an adverse impact of approximately $110 million.

“We are pleased with the start to our fiscal year, and our achievements reflect the tremendous progress we’ve made,” said Robert A. Iger, CEO. “We delivered strong box office performance in calendar year 2025 with billion-dollar hits like Zootopia 2 and Avatar: Fire and Ash, franchises that generate value across many of our businesses. As we continue to manage our company for the future, I am incredibly proud of all that we’ve accomplished over the past three years.”

The Walt Disney Company expects the entertainment operating income in Q2 will be comparable to Q2 2025, while the operating income for sports will decline.