Disney’s earnings report was released today, and while revenue is up, they missed expectations and were down from the same quarter in 2025. It seems they blamed the rising costs of movies for some of the failures and credited their own price increases as part of the success. Sounds about right.
Overall net income was down .12 billion from Q1 2025. It came in at $2.48 billion, but the same quarter last year saw $2.6 billion.
It so missed analyst expectations, which were set at about $2.59 billion.
Why did they come in lower?
Disney blamed a large part of it on the cost of movies like “Avatar: Fire and Ash” and “Tron: Ares” which was a huge box office flop.
They also blamed part of the losses on the Netflix carriage dispute that cost them about $110 million.
Overall revenue was at $10.6 billion, which was up $700 million from Q1 last year.
Revenue did come in higher than expected.
Q1 revenue hit $26 billion, which was up about $1.3 billion from Q4 2025.
Disney credited increased revenue in streaming to their price hikes and bundles. Basically, they charged people more money.
Parks and Experiences did better than expected at $10 billion, which was $600 million more than Q1 2025. It also beat expectations by $1.5 billion.
The company did warn that the growth may be down some this year due to the new Disney Cruise Line ship, the Disney Adventure, and the costs for “The World of Frozen” opening soon in Disneyland Paris.
Increases in revenue were tied to better bookings and an increase in per-guest spending, which was likely due to the constant price hikes for guests.
Disney Stocks still dropped
Since the earnings call, Disney stock has dropped almost 6.7%.
While some of the reporting data was flat, a lot of the stock drop is seemingly being attributed to one question–“Who will be the next CEO of the Walt Disney Company?”
Investors may be waiting to see who Disney names as the next CEO before they feel secure enough to risk more on the company. Many are hoping that Josh D’Amaro will be named, but no announcement has been made one way or another.
Reports indicate that the Disney Board will be making its final decision this week.
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