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Disney Beats Q3 Estimates as Parks Rebound and Streaming Turns Profitable

They signal Josh D'Amaro's shift toward monetizing franchises with larger buybacks for shareholders.

Overview

  • Disney reported Wednesday adjusted earnings per share of $2.06 and about $25.2 billion in revenue for fiscal Q3, beating EPS forecasts and lifting total operating income roughly 21 percent year over year.
  • The Experiences segment led results with $9.97 billion in revenue and $3.02 billion in operating income as U.S. park attendance rose about 3 percent while international parks operating income fell roughly 13 percent, and a roughly $100 million tariff refund boosted quarterly park profits.
  • Streaming profitability improved sharply as streaming operating income more than doubled to about $712 million on roughly $5.5 billion in revenue, driven by higher subscription revenue, price increases and lower churn even though Disney no longer reports subscriber totals.
  • Disney agreed to sell its 50 percent stake in A+E Global Media to an affiliate of Hearst for about $1.2 billion, a move the company said will help fund an increased share-repurchase target of at least $9 billion for fiscal 2026.
  • Management announced structural moves to drive franchise monetization, including shifting consumer products into the Entertainment unit beginning fiscal 2027 and a short-form content-sharing partnership with TikTok to deepen fan engagement and boost merchandise demand.