The Disney Entertainment division raked in $1.1 billion during Q1 2026, mostly thanks to the box office successes of Zootopia 2 and Avatar: Fire and Ash.
Disney Entertainment Earnings
Revenue increased 7% compared to Q1 fiscal 2025. However, operating income (OI) declined by $0.6 billion to $1.1 billion, resulting in the Entertainment segment of the company having a operating margin of 9.5%, as higher programming and production and marketing costs in the quarter more than offset an increase in subscription and affiliate fees and higher theatrical revenue
Zootopia 2 became Disney’s highest-grossing animated film of all time, surpassing Frozen II and then Inside Out 2. It’s the highest-grossing U.S. animated film with $1.745 billion. Only China’s Ne Zha 2 has grossed higher internationally.
Avatar: Fire and Ash has earned $1.379 billion so far and was the top box office film for five weeks. It is the third highest-grossing film released in 2025 (after Zootopia 2 and Ne Zha 2).
“We are pleased with the start to our fiscal year, and our achievements reflect the tremendous progress we’ve made,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “We delivered strong box office performance in calendar year 2025 with billion-dollar hits like Zootopia 2 and Avatar: Fire and Ash, franchises that generate value across many of our businesses. As we continue to manage our company for the future, I am incredibly proud of all that we’ve accomplished over the past three years.”
The two record-breaking film releases helped make up for Tron: Ares, a box office bomb also released during Q1.
Iger emphasized the importance of IP for the company’s business, referencing Disney’s purchases of Pixar, Marvel, 21st Century Fox, and Lucasfilm during his first tenure as CEO.
The company earned a total of $26 billion in revenue this quarter. Disney Experiences made $10 billion.
A CEO was not announced but Josh D’Amaro is still considered the frontrunner.
Did you see Zootopia 2 or Avatar: Fire and Ash in theaters? Let us know on social media.
For the latest Disney Parks news and info, follow WDW News Today on Twitter, Facebook, and Instagram.
