The Walt Disney Company reported a marginal uptick in revenue for the first quarter of fiscal 2026, even as higher programming, production and distribution costs weighed on overall profitability. The company’s total revenue rose 5% year-on-year to $26 billion, up from $24.7 billion in the corresponding quarter last year. However, total segment operating income declined 9% to $4.6 billion, compared to $5.1 billion a year earlier. Income before taxes stood at $3.7 billion, largely in line with the previous year.
In India, Disney reported a $28 million loss from its equity interest in its joint venture with Reliance Industries Limited (RIL), an improvement from the $33 million loss recorded in the same quarter last year. The prior-year quarter had also included a $143 million restructuring and impairment charge related to the Star India transaction.
Within the Entertainment segment, revenue grew 7% year-on-year, but operating income fell by $0.6 billion to $1.1 billion, reducing operating margins to 9.5%. The decline was attributed to increased content investment, higher marketing spends, and rising technology and distribution costs.
Subscription video-on-demand (SVOD) revenue increased 11%, despite a one-percentage-point drag due to Star India’s inclusion in the base quarter. SVOD operating income improved by $189 million to $450 million, with margins reaching 8.4%. Advertising revenue, however, declined 6% year-on-year, impacted by the absence of Star India and elevated political advertising in the prior period.
The Sports segment saw operating income fall to $191 million, while the Experiences segment delivered a standout performance, recording a record $10 billion in revenue and $3.3 billion in operating income, driven by strong park attendance and higher per-capita spending.
