Disney’s first quarter is powered by box-office hits ‘Zootopia 2’ and ‘Avatar: Fire and Ash’

Ken Leon, director of research at Global Fundamental Research, joins BNN Bloomberg to discuss Disney's earnings numbers for Q1.

Disney posted a strong first quarter, powered by box-office hits “Zootopia 2” and “Avatar: Fire and Ash.”

The Walt Disney Co. earned US$2.4 billion, or $1.34 per share, for the three months ended Dec. 27. It earned $2.64 billion, or $1.40 per share, a year ago.

Removing one time charges and costs, earnings were $1.63 per share. That’s better than the $1.57 per share that analysts polled by Zacks Investment Research expected.

Disney, based in Burbank, Calif., reported revenue of $25.98 billion. Wall Street was calling for slightly higher revenue of $25.99 billion.

Revenue for Disney Entertainment, which includes the company’s movie studios and streaming service, climbed 7%, while revenue for the Experiences division, its parks, rose 6%.

“We are pleased with the start to our fiscal year, and our achievements reflect the tremendous progress we’ve made,” CEO Bob Iger said in a statement. “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.”

The Experiences division, which includes Disney’s six global theme parks, its cruise line, merchandise and video game licensing, reported operating income climbed 6% to $3.31 billion and revenue hit a record $10 billion. Operating income rose 8% at domestic parks. Operating income increased two per cent for international parks and Experiences.

Disney said attendance at domestic parks edged up one per cent.

In the Sports segment, operating income declined to $191 million from $247 million as an increase in advertising revenue was offset by higher programming and production costs and a drop in subscription and affiliate fees. The company said that a temporary dispute with YouTube TV dragged down operating income by about $110 million.

Disney and YouTube TV reached a new deal to bring channels like ABC and ESPN back to the Google-owned livestreaming platform in November, ending a blackout for customers that lasted for over two weeks.

Michelle Chapman, The Associated Press