The Walt Disney Company reported fiscal third-quarter results that exceeded analysts' profit forecasts, driven by robust performance in its theme parks and streaming segments. Adjusted earnings per share (EPS) came in at $2.06, significantly higher than the $1.86 per share analysts had predicted. This represents a 10.75% positive surprise, despite total revenue of $25.25 billion slightly missing the $25.43 billion consensus estimate.
The Experiences division, encompassing theme parks, cruise lines, and consumer products, generated $9.97 billion in revenue, marking a 10% increase year-over-year. Operating income for this segment climbed 20% to $3.02 billion. Domestic parks saw a 3% rise in attendance and a 4% increase in per-capita spending, with Walt Disney World specifically highlighted for its strong performance compared to a competitor in Orlando.
Disney's entertainment streaming business, which includes Disney+ and Hulu, saw revenue grow 11% to $5.53 billion. This growth was attributed to an expanding subscriber base, price increases, and higher advertising revenue. Across the entire entertainment segment (streaming, linear TV, and film), revenue reached $11.35 billion, a 6% year-over-year gain, with operating income improving to $1.68 billion from $1.02 billion in the prior year. The animated film "Toy Story 5" also contributed significantly, surpassing $1 billion in global box-office receipts since its June 19 release. Disney also raised its share-buyback target for fiscal 2026 to a minimum of $9 billion, partly funded by the $1.2 billion divestiture of its 50% stake in A+E Global Media to Hearst Corp.
