Q1 FY2026 earnings: revenue beat, EPS surprise, dividend reinstated
Key Questions
What were Disney's key Q1 FY2026 earnings results?
Disney reported Q1 revenue of $25.98 billion, beating expectations, and EPS of $1.63, surpassing consensus. Experiences operating income was $3.3 billion, representing 72% of total OI, while streaming OI reached $450 million, up 72%.
How did Disney's streaming segment perform in recent periods?
Streaming OI was $450 million in Q1 FY2026, up 72%. FY2025 DTC OI totaled $1.3 billion, with Q4 FY25 SVOD revenue at $5.1 billion, $402 million OI, and 196 million subscribers.
Has Disney reinstated its dividend, and what is the status of free cash flow?
Disney reinstated a $0.75 per share dividend despite Q1 FCF of -$2.28 billion. This move signals confidence amid volatile financials.
What are the consensus forecasts for Disney's FY2026?
Analysts consensus projects FY2026 revenue at $101 billion, up 7%, and net income of $10.5 billion. These estimates reflect optimism post-earnings.
What is Disney's current stock price and recent analyst price targets?
The stock trades around $96 and is volatile, with a 52-week range of $80.10 to $124.69. Price targets include Goldman Sachs at $151 (Buy), Morgan Stanley $133, Deutsche Bank $132, Barclays $130 (Overweight), Guggenheim and RJF $115.
Were there notable insider purchases following Disney's earnings?
Disney director Elena Maria Lagomasino bought additional shares, along with Michael Froman. This insider activity highlights confidence in the stock's valuation.
What institutional investor activity has been reported for Disney?
13F filings show interest from Viking, Vest, Junto, and Centaurus. Funds like Capricorn (10,332 shares), Perpetual Ltd (9,726 shares), ROGCO (228 shares), and EXENCIAL (465 shares) bought shares, though some like Allspring sold 206,050 shares.
What should investors monitor after Disney's Q1 FY2026 earnings?
Key areas include Q2 forecasts, free cash flow trends, dividend sustainability, ongoing insider buys, analyst price target updates, and valuation models. Positive analyst notes like Goldman Sachs' Buy rating add to the watchlist.
Q1 rev $25.98B beat, $1.63 EPS, Experiences OI $3.3B (72% total), streaming OI $450M +72%, FY2025 DTC $1.3B, Q4 FY25 SVOD $5.1B rev/$402M OI, 196M subs; FCF -$2.28B but dividend $0.75; consensus FY26 $101B rev (+7%), NI $10.5B; stock ~$96 volatile with PTs up to $151 (MS $133, Guggenheim $115, RJ $115, DB $132, Barclays $130 OW, Goldman $151 Buy); Lagomasino insider buy, 13Fs (Viking, Vest, Junto/Centaurus). Monitor Q2 forecasts, FCF/dividend/insiders/PTs/models.