Disney’s India Joint Venture Posts $28 Million Loss in Q1 FY26

The Walt Disney Company posted revenue of $26 billion for the first quarter of fiscal 2026, up from $24.7 billion a year earlier, as per The Economic Times report.  

While revenue increased, earnings were lower. Total segment operating income declined to $4.6 billion from $5.1 billion in the year-ago quarter. Income before income taxes was reported at $3.7 billion, broadly unchanged year on year. 

India Joint Venture Update 

During the quarter, Disney reported a $28 million loss from its equity interest in its India joint venture with Reliance Industries Limited. This was an improvement from the $33 million loss reported in the same quarter last year.  

In Q1 FY25, the company had also recorded a $143 million restructuring and impairment charge linked to the Star India transaction, which did not recur in the current reporting period. 

Entertainment Segment Performance 

Revenue from the Entertainment segment rose 7% year on year in Q1 FY26. Operating income, however, fell by $0.6 billion to $1.1 billion. As a result, the segment’s operating margin declined to 9.5%.  

The reduction in operating income was attributed to higher spending on content, marketing, and technology, along with increased distribution-related costs. 

Streaming and Advertising 

Subscription video-on-demand revenue increased 11% compared with the same period last year. This growth came despite a one-percentage-point negative impact from Star India revenue being included in the prior-year quarter. SVOD operating income rose by $189 million to $450 million, with an operating margin of 8.4%. 

Advertising revenue declined 6% year on year, mainly due to the absence of Star India advertising revenue and higher political advertising in the base period. The impact was partly offset by the inclusion of the Fubo transaction in the current quarter. 

Sports and Experiences Segments 

The Sports segment reported operating income of $191 million, down $56 million from Q1 FY25.  

The decline reflected higher programming and production costs, lower subscription and affiliate fees, and a temporary suspension of YouTube TV carriage, which had an estimated $110 million impact.  

The Experiences segment recorded revenue of $10 billion and operating income of $3.3 billion. Domestic Parks and Experiences operating income increased 8%, supported by higher attendance and higher per-capita spending. 

Read More: Disney Commits $1 Billion to OpenAI, Integrating Mickey, Marvel and Other Franchises with Sora! 

Conclusion 

The quarter showed higher revenue alongside lower operating income, with losses from the India joint venture narrowing and performance differing across segments. 

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