Walt Disney Company today reported its first quarter fiscal 2026 results, revealing that the entertainment conglomerate's streaming services generated more than $5 billion in revenue during the quarter ended December 27, 2025. The performance demonstrates sustained momentum in Disney's transformation of its direct-to-consumer platforms into profitable advertising-supported businesses, with Entertainment SVOD operating income climbing 72% year-over-year to $450 million.
The streaming advertising gains come as programmatic buyers increasingly demand AI optimization and connected television budgets surge across the industry. Disney's platforms benefited from structural advantages including high-quality content environments, sophisticated audience targeting capabilities through Disney Compass data infrastructure, and expanding programmatic access through partnerships with major demand-side platforms.
Revenue growth across Disney's Entertainment SVOD services – comprising Disney+, Hulu subscription video-on-demand, and Disney+ Hotstar (through November 14, 2024) – reached 11% compared to the prior-year quarter, according to the company's executive commentary released February 2, 2026. The increase reflects both subscription revenue expansion and advertising revenue growth, partially offset by the adverse 1 percentage point impact from the inclusion of Star India revenue in the prior year.
Disney+ and Hulu captured seven of the top 10 most-watched shows of 2025 as reported by Nielsen, with Bluey maintaining its position as the most-streamed show in the United States for the second consecutive year with 45 billion minutes watched. The content performance demonstrates the platform's ability to retain audience engagement while monetizing through both subscription and advertising revenue streams.
Advertising technology advances drive platform monetization
The streaming services' financial performance coincided with Disney's deployment of new advertising…