Who Owns Hulu?

The Walt Disney Company reported exceptional financial results for Q1 fiscal 2026, with revenues increasing 5% to $26.0 billion compared to $24.7 billion in Q1 fiscal 2025, exceeding Wall Street expectations of $25.74 billion. The company's adjusted earnings per share reached $1.63, topping analyst estimates of $1.57, while net income for the quarter was $2.48 billion, or $1.34 per share. Disney's performance reflects successful execution across its diversified business segments and strategic investments in streaming and content creation.

Experiences Segment Performance reached a historic milestone in Q1 2026, with the experiences division (including theme parks, resorts, and cruises) crossing $10 billion in quarterly revenue for the first time in company history. Disney's domestic theme parks recorded $6.91 billion in revenue, while international parks reported $1.75 billion in revenue, each up 7% compared with the prior-year period. The company saw attendance rise at its domestic theme parks, though "international visitation was softer," according to CFO Hugh Johnston.

The experiences segment achieved an 8% increase in operating profit, contributing significantly to Disney's overall financial performance. Disney's popular cruise business also performed well in the quarter, with total attendance at U.S. theme parks increasing 1% compared to the previous year. The company is preparing for several major launches, including the Disney Adventure cruise ship and World of Frozen at Disneyland Paris, though pre-launch and pre-opening costs are impacting current segment operating income.

Streaming Business Progress continues to show strong momentum, with Disney projecting its streaming unit (consisting of Disney+ and Hulu) to achieve approximately $500 million in operating income for Q2 fiscal 2026, an increase of roughly $200 million compared with the same period last year. The company expects double-digit segment operating income growth compared to fiscal 2025, weighted to the second half of the year, with an SVOD operating margin target of 10%.

Disney's streaming strategy focuses on international growth opportunities and local content investment, with encouraging results from these initiatives. The company is rolling out numerous product enhancements to elevate the user experience on Disney+, including AI-powered planning tools and video generators to improve advertiser engagement. Disney plans to introduce a curated slate of Sora-generated content on Disney+ following its licensing agreement with OpenAI, demonstrating the company's commitment to technological innovation in content creation.

Content Creation Success in calendar year 2025 was exceptional, with Disney's film studios generating more than $6.5 billion at the global box office, marking the company's third biggest year ever and its ninth year as No. 1 at the global box office in the last 10 years. To date, 37 billion-dollar films have come from Disney's studios out of the 60 films that have hit this mark industrywide, with Disney having four times as many as any other studio.

The box office success of branded IP generates value across Disney's interconnected businesses, with hits like "Zootopia 2" lifting viewership of related titles on Disney+ and fueling global interest in parks and consumer products. "Zootopia 2" became the highest grossing Hollywood film of all time in China, earning more than $630 million at the box office, while the franchise also serves as an important driver of attendance at Shanghai Disneyland with the Zootopia-themed land being one of the most popular areas of the park.

Television and Sports Performance demonstrated remarkable strength in Q1 2026, with seven of the top ten most-watched shows of 2025 streaming on Disney+ or Hulu, according to Nielsen. "Bluey" was the most-streamed show in the U.S. for the second year in a row, with 45 billion minutes watched. ABC also had the top six shows for Adults 18-49 in calendar year 2025, including "High Potential," "Abbott Elementary," and "Dancing with the Stars."

ESPN continued its industry leadership, capturing more than 30% of all sports viewership across networks, including ESPN on ABC. ESPN Networks delivered their most-watched college football regular season since 2011, while ABC achieved its best college football season since 2006. The College Football National Championship reached 30.1 million viewers, becoming the second most-viewed cable event ever. Monday Night Football delivered its second-highest viewership in 20 years, with the NFL Divisional game drawing 38 million viewers – the most-watched event in company history.

Strategic Investments and Future Outlook demonstrate Disney's commitment to long-term growth. The company is on track to repurchase $7 billion in stock during fiscal 2026 and expects double-digit growth in adjusted earnings per share and $19 billion in cash provided by operations. Disney continues to strengthen its rights portfolio while maintaining disciplined spending, including a recently announced three-year MLB agreement that makes ESPN the exclusive distributor of MLB.TV.

On January 31, 2026, Disney closed its transaction with the NFL to acquire NFL Network and other media assets, including the linear rights to NFL RedZone, further bolstering ESPN's offering with a rich content experience for football fans. The launch of ESPN Unlimited marked an important step in Disney's direct-to-consumer evolution, with encouraging adoption and engagement with new app features, strong authentication from pay-TV subscribers, and robust new signup patterns.

CEO Leadership Transition remains a key focus, with Disney's board expected to vote on a successor to CEO Bob Iger. Iger collected $45.8 million in compensation in 2025, an 11% increase compared to his 2024 pay, reflecting the board's satisfaction with his leadership and the company's strong performance under his guidance. The leadership transition will be crucial for maintaining Disney's momentum and strategic direction as the company continues to navigate the evolving entertainment landscape.