Netflix vs Disney: Only One Is a Winner of The Streaming War

"Netflix grew Q1 revenue to $12.25 billion, up 16.2% year over year, with EPS of $1.23 versus a $1.34 estimate. The miss is messy on the surface, but net income included a $2.80 billion termination fee from walking away from the Warner Bros. deal. Co-CEOs Greg Peters and Ted Sarandos leaned hard into the ad tier, which drove over 60% of Q1 sign-ups in ads markets, while advertiser count climbed 70% to more than 4,000 clients. Ad revenue is on track to roughly double to $3 billion in 2026."

"Disney's quarter looked broader. Revenue rose to $25.17 billion, up 6.5%, with adjusted EPS of $1.57 against a $1.50 consensus. Entertainment SVOD revenue jumped 13% to $5.49 billion, and segment operating income surged 88% to $582 million at a 10.6% margin, the first double-digit print. Experiences hit a record fiscal Q2 of $9.49 billion, helped by 5% higher domestic per capita spending."

"Netflix is choosing focu s. Walking away from Warner Bros., acquiring Ben Affleck's InterPositive GenAI filmmaking tools, and resuming buybacks ($1.3 billion repurchased in Q1, $6.8 billion remaining) all point to a leaner, software-style operator. Live events like the upcoming Tyson Fury vs Anthony Joshua bout add reach without changing the model."

"Disney is widening the net, but smartly. New CEO Josh D'Amaro told investors, "Our creative and operational momentum drove strong quarterly results, and we continue to expect growth to accelerate in the second half of the fiscal year." ESPN absorbed NFL Network in exchange for a 10% noncontrolling stake, the Di"

Netflix reported Q1 FY26 revenue of $12.25 billion, up 16.2% year over year, alongside EPS of $1.23 versus a $1.34 estimate. Net income included a $2.80 billion termination fee tied to exiting the Warner Bros. deal. The company leaned into its ad tier, which accounted for over 60% of Q1 sign-ups in ad markets, with advertiser count rising 70% to more than 4,000 clients, and ad revenue expected to roughly double to $3 billion in 2026. Disney reported fiscal Q2 FY26 revenue of $25.17 billion, up 6.5%, with adjusted EPS of $1.57. Entertainment SVOD revenue rose 13% to $5.49 billion, and segment operating income increased 88% to $582 million at a 10.6% margin. Experiences reached a record $9.49 billion, supported by 5% higher domestic per capita spending, and ESPN reset included absorbing NFL Network for a 10% noncontrolling stake.

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