By Lisa Richwine
LOS ANGELES, May 6 (Reuters) – Walt Disney exceeded Wall Street’s quarterly earnings estimates on Wednesday as streaming and theme park revenue rose, and new Chief Executive Josh D’Amaro reiterated that the company expected growth to accelerate in the second half of the fiscal year.
The entertainment giant reported adjusted earnings-per-share of $1.57 and revenue of $25.2 billion for January through March. Analysts on average had expected adjusted EPS of $1.49 and revenue of $24.78 billion, according to LSEG.
D’Amaro succeeded Bob Iger as Disney CEO in mid-March and is steering the company through a consumer shift to streaming, the advent of artificial intelligence tools that could rewrite the economics of media and a challenging economy hit by higher oil prices.
In a 10-page letter to shareholders, D’Amaro said he expected adjusted EPS growth for fiscal 2026, which ends in early October, to reach about 12%. The company had earlier projected growth for that period in the “double digits.” He reiterated that Disney expects double-digit adjusted EPS growth for fiscal 2027.
D’Amaro also said he planned to invest in entertainment content and theme park experiences and use technology to help increase revenue from storytelling, among other initiatives.
“We see a significant opportunity to engage and entertain our fans more deeply in both digital and physical environments,” he said.
He added that the company was “mindful of the macroeconomic uncertainty consumers are facing” but that current demand at Disney’s U.S. theme parks in Florida and California was “healthy.”
The experiences division, which includes parks, cruise ships and consumer products, reported a 5% increase in operating income for the just-ended quarter. Guests spent more at U.S. theme parks, and cruise ships saw higher volume, compared with the same period a year earlier, Disney said.
At the entertainment unit, operating income rose by 6% to $1.34 billion. The boost came partly from higher subscription and advertising revenue from streaming services including Disney+. Movie box-office hits “Zootopia 2” and “Avatar: Fire and Ash,” released last year, continued to contribute during the quarter.
The sports division, home of ESPN, posted a 5% decrease in operating income to $652 million. Disney said the division incurred higher sports rights and production costs compared with a year earlier.
(Reporting by Lisa Richwine; Editing by Christopher Cushing)
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