Media and entertainment conglomerate Disney (NYSE: DIS) on Monday reported a top and bottom line beat for its fiscal first quarter, mainly benefitting from a strong momentum in its Experiences segment.
Shares of the company fell 4% in immediate reaction to the report but erased losses and jumped as much as 4% before paring most of those gains.
In the Experiences segment, revenue was up 6% at $10B, and operating income was also up 6% at $3.31B. The unit was helped by higher volumes attributable to increased passenger cruise days, attendance and occupied room nights, and an increase in guest spending, among other things, the company said.
In the Entertainment segment, revenue was up 7% at $11.61B, but operating income was down 35% at $1.10B, hurt by higher programming and production costs and marketing costs due to increases at theatrical distribution and streaming services, among other things, the company said.
In the Sports segment, revenue was up 1% at $4.91B, and operating income was down 23% at $191M. The temporary suspension of YouTube TV carriage had an adverse impact on the segment’s operating income of about $110M, the company said.
Net income for the three months ended December 27 was $2.40B, or $1.34 per share, compared to $2.55B, or $1.40 per share, for the same period last year.
Total operating income fell 9% to $4.60B but beat the estimate of $4.59B.
On an adjusted per-share basis, the company earned $1.63, above the average analyst estimate of $1.56.
Revenue rose 5% to $26B and was above the $25.69B estimate.
For the full year, the company expects to buy back $7B in stock, forecast a double-digit adjusted EPS growth compared to fiscal 2025, and $19B in cash provided by operations.
For the current quarter, the company expects modest growth in Experiences segment operating income, Entertainment OI to be similar to Q2 2025, and Sports OI to decline $100M.