Disney released its fiscal third quarter results, exceeding Wall Street expectations for earnings while narrowly missing revenue projections. The company’s experiences segment, encompassing global theme parks and cruises, generated $9.97 billion in revenue, representing a 10% year-over-year increase. Domestic park attendance rose 3% with a 4% gain in per capita spending, and Walt Disney World in Orlando demonstrated particularly strong performance.
The company’s entertainment streaming business, primarily comprising Disney+ and Hulu, also showed strength with revenue increasing 11% to $5.53 billion during the quarter. Growth was fueled by rising subscriber numbers, pricing adjustments, and increased advertising revenue. The broader entertainment segment, which includes traditional television and theatrical releases alongside streaming services, posted a 6% revenue gain to $11.35 billion, bolstered by the theatrical success of “Toy Story 5,” which crossed the $1 billion mark globally.
For the quarter ended June 27, Disney reported total revenue of $25.25 billion, up 7% year over year. Net income was $2.64 billion, or $1.51 per share. Adjusting for one-time items including restructuring costs, the company reported adjusted earnings of $2.06 per share, compared to $1.61 in the comparable prior-year period. The sports segment, primarily consisting of ESPN, generated $4.5 billion in revenue with a 4% increase driven by subscription fees, affiliate revenues, and advertising income.
The company announced plans to increase share repurchases to at least $9 billion in fiscal 2026, up from the previous target of $8 billion. Disney also disclosed a roughly $100 million tariff refund related to previous trade administration policies. Additionally, the company stated its intention to relocate consumer products operations from the experiences segment to the entertainment division beginning in fiscal 2027, citing strategic and operational benefits. Disney also unveiled a new global content partnership with TikTok to feature curated fan-created Disney content on the social media platform.
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