Disney first-quarter profit beats estimates as Zootopia 2, Avatar drive results

Disney’s quarter reflects a film-driven boost, but park outlook is clouded by weaker international travel

Disney said its first quarter delivered strong results, supported by box-office performance from “Zootopia 2” and “Avatar: Fire and Ash,” while the company cautioned that its theme-park business will likely face headwinds in the next quarter tied to international tourism.

Disney reported that it earned $2.4 billion, or $1.34 per share, for the three months ended Dec. 27, compared with $2.64 billion, or $1.40 per share, a year earlier. After removing one-time charges and costs, Disney said earnings were $1.63 per share, which was higher than the $1.57 per share that analysts polled by Zacks Investment Research expected.

Revenue for the quarter came in at $25.98 billion, just below Wall Street’s call for $25.99 billion, according to the company’s earnings discussion. Disney’s entertainment revenue, which includes its movie studios and streaming service, climbed 7%, and its Experiences division revenue rose 6%.

In a statement issued Monday, Chief Executive Officer Bob Iger said the company was pleased with the start to its fiscal year. Iger said Disney delivered strong box office performance in calendar year 2025 with “billion-dollar hits like Zootopia 2 and Avatar: Fire and Ash,” describing the franchises as generating value across multiple parts of the business.

Disney’s Experiences division—which Disney said includes its six global theme parks, its cruise line, and merchandise and video game licensing—reported operating income climbing 6% to $3.31 billion. The company said revenue for the division hit a record $10 billion, and it broke out operating income increases of 8% at domestic parks and 2% for international parks.

Even with that performance, Disney warned that the second quarter should show only modest operating income growth in the Experiences division. The company pointed to weaker international tourism to the United States, attributing it to multiple factors, including President Donald Trump’s return to the White House, tariffs, an immigration crackdown, and what the company described as repeated jabs about the U.S. possibly trying to acquire Canada and Greenland.

During a conference call, Disney’s Chief Financial Officer Hugh Johnston said the company had noted weakening international tourism during the quarter and pivoted marketing, sales and promotional efforts toward its domestic audience. Johnston said that focus helped keep park attendance up, with Disney reporting domestic attendance edged up 1%.

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

Disney also said it and YouTube TV reached a new deal in November to bring channels such as ABC and ESPN back to the Google-owned livestreaming platform, ending a blackout for customers that lasted for over two weeks. Shares slipped 2% before the market open.