The Walt Disney Co. reported a 7% increase in revenue to $25.2 billion for its third quarter ending June 27, bolstered by the box office success of Toy Story 5
and strong performance across its domestic and global theme parks, according to hollywoodreporter.com. While total revenue slightly missed Wall Street forecasts of $25.4 billion from analysts surveyed by LSEG, Disney’s adjusted earnings per share rose 28% from a year ago to $2.06, beating analyst predictions of $1.86 per share, as reported by nypost.com. Following the earnings announcement, company shares climbed between 3% and 4.6% in premarket and morning trading.
Disney Reports 7% Revenue Increase Driven by Toy Story 5 and Theme Parks
Entertainment and Streaming Growth Bolstered by Box Office Hits
Disney’s Entertainment division generated $11.3 billion in revenue for the quarter, marking a 6% increase from the previous year, with segment operating income surging 64% to nearly $1.7 billion. The division’s gains were significantly driven by Toy Story 5
, which topped $1 billion at the global box office and contributed to the company’s strongest quarter of year-over-year consumer products revenue growth in 20 quarters. The blockbuster film also increased viewings of other franchise films on Disney+ and boosted merchandise sales and theme park attendance. SVOD entertainment revenue for Disney+ and Hulu reached $712 million, alongside a 15% increase in subscription fees, signaling more reliably profitable streaming operations under Chief Executive Officer Josh D’Amaro, who took over in March and outlined his strategy to leverage major franchises across multiple business segments.
Theme Parks and Experiences Deliver Strong Margins Despite Challenges
Disney’s Parks, Experiences and Products division reported revenue of nearly $10 billion, up 10% from a year ago, with segment operating income climbing 20% to $3 billion. Global theme park attendance rose 4%, while domestic US parks saw a 3% increase in attendance driven by domestic tourists and annual passholders, offsetting a continued decline in international visitors. The division’s results were further supported by a $100 million tariff refund received during the quarter after the US Supreme Court struck down global tariffs as illegal. These theme park results successfully eased market concerns regarding consumer sentiment and lower-than-expected results recently reported by Universal’s theme parks.
Sports Segment Faces Pressure While Strategic Asset Sales Expand Buybacks
Disney’s Sports division generated $4.5 billion in quarterly revenue, but operating income fell 17% to $858 million due to higher NBA rights costs and shorter-than-expected early rounds in the NBA playoffs, where multiple series ended in four-game sweeps. To further optimize capital, Disney announced the sale of its 50% stake in A+E Global Media to co-owner Hearst Corp., generating approximately $1.2 billion in cash proceeds. According to Emirates247.com, the company plans to use these proceeds alongside existing cash to expand its fiscal 2026 share buyback target to at least $9 billion. Looking ahead, Disney expects fourth-quarter segment operating income of $4.9 billion, anticipating continued growth in its parks group, though it cautioned that the weaker box office performances of the live-action adaptation of Moana
as well as The Mandalorian and Grogu
will weigh on entertainment segment results.
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