Disney CEO Bob Iger reported strong financial results for the first quarter of fiscal year 2026, emphasizing the value of the company’s intellectual property (IP) amid ongoing speculation about his potential successor. During the earnings call, Iger highlighted that the company’s IP portfolio remains robust, particularly in light of the recent developments surrounding Warner Bros Discovery.
Iger stated, “If anything, the battle for control of Warner Bros Discovery should emphasize or cause investors to appreciate the tremendous value of our assets, particularly our IP.” He noted that Disney does not have a current need to acquire additional IP, asserting that the company will continue to leverage its existing assets and stories. He referred to Disney’s $71.3 billion acquisition of 21st Century Fox in 2019 as “ahead of its time” and “extremely well-priced” compared to the current market valuations for Warner Bros Discovery assets.
The earnings report for the quarter ending December 27, 2025, showed Disney’s overall revenue increased by 5% year-on-year to $25.9 billion. Adjusted earnings per share reached $1.63, with operating income reported at $4.6 billion. All three metrics surpassed Wall Street forecasts. Iger nostalgically remarked on the company’s improved position compared to three years ago, suggesting that his successor would inherit a strong foundation.
Current speculation points to Josh D’Amaro, head of Disney Parks, Experiences and Products, as a likely successor, alongside Dana Walden, who oversees entertainment and news. Iger commented, “The good news is the company is in much better shape today than it was three years ago because we’ve done a lot of fixing.”
D’Amaro’s division achieved a significant milestone, posting quarterly revenue exceeding $10 billion for the first time. Despite these successes, Disney shares declined by 7.4% by the end of trading, reflecting investor uncertainty regarding Iger’s succession and rising operational costs. The entertainment division reported a year-on-year revenue increase of 7% to $11.6 billion, though operating income fell by 35% to $1.1 billion. This decline was attributed to increased costs associated with releasing a higher number of films compared to the previous year, as well as the integration of Fubo into Hulu+ Live and rising technology expenses.
Streaming revenue showed promising growth, up by 11% to $5.3 billion for the quarter, which included $4.4 billion from subscription fees and $922 million in advertising and other revenue. Profit from streaming climbed by 72% year-on-year to $450 million, with projections suggesting it could reach $500 million in the second quarter.
Although Disney has ceased reporting specific subscriber numbers, Iger noted that membership continues to grow. He expressed optimism about investments in local content, stating, “We see encouraging results.” The CEO also mentioned plans for complete integration of Hulu into Disney+ by the end of 2026, while maintaining the option for customers to subscribe to the platforms separately.
In a separate development, Disney’s sports division reported a loss of $110 million due to a 15-day carriage dispute with YouTube, which resulted in a blackout of channels including ABC and ESPN.
Iger also clarified details surrounding Disney’s three-year licensing deal with OpenAI, which aims to enable users to create short videos featuring approximately 250 Disney characters through the Sora app. These videos will be curated on Disney+, with Iger viewing AI as a valuable tool for enhancing creative processes and improving productivity. He noted that the first batch of videos is expected to launch in fiscal year 2026, although there are currently no plans to extend video lengths beyond thirty seconds.
With a strong fiscal performance and strategic initiatives in place, Disney remains poised for future growth, even as leadership transitions loom on the horizon.
