The Walt Disney Company (NYSE:DIS) reported a 5% increase in first-quarter revenue to $26 billion, a record high for the period, but saw its bottom line pressured by rising programming costs and a high-profile carriage dispute.
While the company's "Experiences" segment hit a historic revenue milestone, a 9% decline in total segment operating income highlighted the ongoing cost challenges of Disney's streaming and theatrical transformation.
Adjusted earnings per share (EPS) for the quarter ended Dec. 27, 2025, fell to $1.63 from $1.76 a year earlier, though the result still cleared the $1.58 average analyst estimate.
The decline was largely driven by the Entertainment segment, where a 7% revenue gain was offset by $0.6 billion in higher production and marketing expenses.
Despite these headwinds, Disney's streaming business showed improved efficiency, with Direct-to-Consumer (DTC) SVOD operating income rising to $450 million.
The Sports segment remained a focal point of volatility.
Operating income for the division fell to $191 million, hampered by a temporary carriage suspension on YouTube TV that management estimated had a $110 million negative impact.
Offsetting these pressures was the continued resilience of Disney’s theme parks; the Experiences segment posted record revenue of $10 billion, supported by a 4% increase in per capita spending at domestic parks.