Disney reported a 5% increase in revenue for the December 2025 quarter, beating Wall Street expectations and continuing its upward trajectory for its streaming business. However, the company currently does not report total subscriber numbers for Disney+ and Hulu.
The Mouse House’s total revenue was $25.98 billion for the three months ended December 27, 2025, the first quarter of Disney’s fiscal 2026. Pretax net income was $3.69 billion, about the same level as the same period last year, and adjusted earnings per share decreased 7% to $1.63.
Entertainment revenue increased 7% due to the blockbuster hit “Zootopia 2,” which became the highest-grossing animated movie in history, the strong performance of James Cameron’s “Avatar: Fire and Ash,” and increased revenue from Disney+ and Hulu after price hikes implemented in the quarter. Disney’s theme parks and products business reached a record $10 billion in sales in the year-end quarter, an increase of 6%, and operating income rose 6% to $3.3 billion.
However, companywide operating income for the quarter decreased 9% to $4.6 billion. Disney’s entertainment business has been hit by soaring content and production costs. It also spent more on theatrical marketing (nine films were released in the quarter compared to four in the year-ago period) and Disney+ and Hulu marketing. Additionally, last fall’s two-week YouTube TV outage took a $110 million hit to ESPN’s operating profit.
“We are pleased with the start to our fiscal year and our results reflect the tremendous progress we have made to date,” Disney Chief Executive Officer Bob Iger said in a prepared remarks. These multi-billion dollar blockbusters delivered strong box office returns in calendar year 2025. These franchises are creating value across many of our businesses, and we are extremely proud of everything we have accomplished to date as we continue to operate for the future.” It’s been 3 years. ”
The company’s board of directors is expected to announce Mr. Iger’s successor as Disney’s next CEO as soon as this week. Iger reportedly plans to step down in 2026, before his contract officially expires at the end of the year. According to Bloomberg, the board is “aligned” with the selection of Josh D’Amaro, chairman of Disney Experience’s theme parks, cruises and products division.
Streaming was strong again this quarter. Total Disney+ and Hulu revenue increased 11% to $5.35 billion, and operating income increased 72% to $450 million. This equates to an 8.4% operating margin for the period, and Disney reiterated that it expects Entertainment Streaming to have a full-year 2026 operating margin of 10%.
Going forward, investors will need to track Disney’s streaming progress without knowing the subscriber numbers for Disney+, Hulu, or Hulu + Live TV. The company announced in August that it would no longer report subscribers or revenue for Disney+ or Hulu, saying those metrics were “no longer meaningful in evaluating our business performance.” The move follows in the footsteps of Netflix, which stopped reporting regular subnumbers in the first quarter of 2025, citing the same reasons.
On October 29, 2025, Disney merged its Hulu + Live TV assets with Fubo, and Disney now owns a 70% interest in the combined business. During the quarter, Disney collected $307 million in non-cash taxes on the Fubo transaction.
Meanwhile, Disney has also lost track of the revenues and operating profits of its linear TV business, which includes entertainment cable networks such as ABC, FX and the Disney Channel. Disney’s linear TV business, like other industries, has been in steady decline amid cord cutting and the rise of streaming. Disney said TV ad revenue decreased in the quarter, due in part to lower political ad spending compared to 2024. ABC and Disney-owned entertainment cable companies also suffered revenue losses due to the YouTube TV outage, although the company did not quantify it.
