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Disney Beats EPS Forecast as Parks, Toy Story 5 and Streaming Boost Profits

The company signaled a shift to monetize franchises and return cash to investors, returning proceeds from an A+E stake sale to expanded buybacks.

Overview

  • Disney reported adjusted earnings per share of $2.06 for fiscal Q3, beating the $1.86 consensus while revenue rose 7% to about $25.2 billion but narrowly missed Street forecasts.
  • The Experiences division drove results with nearly $10 billion in revenue and roughly $3.02 billion in operating income as global guests rose about 4% and U.S. park attendance climbed about 3%.
  • Toy Story 5 gave the company cross‑platform momentum by lifting box office, Disney+ engagement and merchandise sales, helping Entertainment revenue and margins this quarter.
  • Streaming profitability improved sharply, with DTC operating income more than doubling to about $712 million as subscription revenue grew and churn declined.
  • Management announced the sale of its 50% stake in A+E Global Media to Hearst for about $1.2 billion and raised fiscal‑2026 buybacks to at least $9 billion while moving consumer products into Entertainment and striking a short‑form deal with TikTok.