Disney Q1 Earnings Beat Estimates on Film Hits

The Walt Disney Company reported stronger-than-expected adjusted earnings for its fiscal first quarter on Wednesday, fueled by blockbuster films including Zootopia 2 and Avatar: Fire and Ash, though overall revenue fell just short of analyst forecasts.

For the three months ended December 27, Disney posted net income of $2.4 billion, or $1.34 per share, compared with $2.64 billion, or $1.40 per share, in the same period a year earlier. After excluding one-time charges and costs, adjusted earnings came to $1.63 per share, surpassing the $1.57 per share anticipated by analysts surveyed by Zacks Investment Research. The Burbank, California-based entertainment giant recorded revenue of $25.98 billion, narrowly missing Wall Street's projection of $25.99 billion.

The results highlighted robust performance across key segments. Revenue in Disney Entertainment, which encompasses the company's film studios and streaming services, increased 7 percent from the prior year. Meanwhile, the Experiences division, covering Disney's six global theme parks, cruise line, merchandise and video game licensing, saw revenue rise 6 percent to a record $10 billion. Operating income in that segment climbed...