Disney’s Q1 Surge Driven by ‘Zootopia 2’ and ‘Avatar: Fire and Ash’

Casey Halston

Published: February 2, 2026 10:37 AM ET

Disney has reported an impressive first quarter, significantly bolstered by the success of “Zootopia 2” and “Avatar: Fire and Ash.” For the three months concluding on December 27, the company achieved earnings of $2.4 billion, translating to $1.34 per share. Comparatively, in the previous year, Disney’s earnings stood at $2.64 billion, or $1.40 per share.

Financial Performance Overview

Adjusting for one-time charges and costs, Disney’s earnings increased to $1.63 per share, surpassing analysts’ expectations of $1.57 per share based on data from Zacks Investment Research. The total revenue for Disney amounted to $25.98 billion. Analysts had projected slightly higher revenue, estimating $25.99 billion.

Segment Performance

Disney Entertainment: Revenue grew by 7%, encompassing movie studios and the streaming service.
Experiences Division: Revenue within this segment, which includes theme parks, rose by 6%.
Operating Income: Operating income for the Experiences Division hit $3.31 billion, an increase of 6%, with park revenue reaching a record $10 billion.
Domestic Parks: Operating income increased by 8% while attendance rose by 1%.
International Parks: Here, operating income came in higher by 2%.

Statements from Leadership

CEO Bob Iger expressed satisfaction with the beginning of the fiscal year, emphasizing the company’s progress. He stated, “We delivered strong box office performance in calendar year 2025 with billion-dollar hits like Zootopia 2 and Avatar: Fire and Ash, franchises that generate value across many of our businesses.”

Challenges in Sports Segment

In contrast, the Sports segment witnessed a decline in operating income to $191 million, down from $247 million. This downturn can be attributed to rising programming and production costs, alongside a decline in subscription and affiliate fees. The recent conflict with YouTube TV also affected performance, resulting in an estimated $110 million loss in operating income.

Despite these challenges, Disney and YouTube TV entered into a new agreement in November, reinstating channels like ABC and ESPN after a two-week blackout period for subscribers.

As Disney looks ahead, the strong performance of its franchises like “Zootopia 2” and “Avatar: Fire and Ash” indicates a promising trajectory for the company in the upcoming quarters.