Overview
- Disney reported stronger-than-expected fiscal third-quarter results on Wednesday with adjusted EPS of $2.06 and revenue of about $25.2 billion, lifting total operating income to roughly $5.6 billion.
- The Experiences unit drove the beat as U.S. parks and resorts showed robust demand with domestic attendance up about 3%, global guests up 4%, and Experiences operating income near $3.02 billion.
- Studio and merchandise revenue got a major boost from Toy Story 5, which passed $1 billion at the box office and helped lift consumer-products sales tied to park merchandise.
- Direct-to-consumer streaming economics improved sharply with streaming operating income roughly doubling to about $712 million as subscription revenue rose and churn declined.
- Management announced portfolio and capital moves including a sale of its 50% A+E stake to Hearst for about $1.2 billion, a raised share-repurchase target to $9 billion, a plan to move Consumer Products into Entertainment in fiscal 2027, and a global short-form deal with TikTok while also flagging a phased Disney+ membership rollout starting spring 2027.