Disney posted mixed quarterly results on Wednesday, far surpassing Wall Street expectations for earnings while slightly missing revenue estimates, with its parks and streaming businesses once again driving the company’s performance.
Parks Continue To Drive Growth
Revenue from Disney’s Experiences segment, which includes global theme parks and cruises, rose 10% year over year to $9.97 billion, despite macroeconomic uncertainty that continues to weigh on consumers.
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“Domestically we’re doing extremely well right now,” CFO Hugh Johnston told CNBC, noting that attendance at U.S. parks increased 3%, while per capita spending rose 4%. He also highlighted strong attendance at Walt Disney World in Orlando.
By comparison, Comcast’s NBCUniversal recently reported lower attendance at its Orlando theme parks, citing weaker consumer sentiment and higher travel costs.
Streaming Supports Results
Revenue from Disney’s streaming business, primarily Disney+ and Hulu, increased 11% to $5.53 billion, driven by subscriber growth, price increases and higher advertising revenue.
Overall revenue from the Entertainment segment, which also includes traditional television and theatrical releases, rose 6% to $11.35 billion, helped by the success of Toy Story 5, which has surpassed $1 billion at the global box office.
Disney no longer reports quarterly streaming subscriber numbers or a breakdown of revenue and operating income for its linear television networks.
Earnings Top Forecasts
For the fiscal third quarter ended June 27, Disney reported earnings per share of $2.06, above analysts’ expectations of $1.86, while revenue reached $25.25 billion, slightly below the expected $25.4 billion.
Overall revenue increased 7% year over year, while adjusted earnings rose to $2.06 per share from $1.61 a year earlier. Shares gained roughly 4% in premarket trading following the results.
Sports And Share Buybacks
Revenue from Disney’s Sports segment, led by ESPN, rose 4% to $4.5 billion, supported by subscription and affiliate fees as well as advertising revenue. Johnston said viewership for the NBA and NHL Finals more than doubled compared with last year.
Disney also raised its fiscal 2026 share repurchase target to at least $9 billion, up from $8 billion previously, following the sale of its 50% stake in A+E Global Media to Hearst.
Beginning in fiscal 2027, the company will move much of its consumer products business to the Entertainment division. Separately, Disney announced a global partnership with TikTok aimed at expanding Disney-related fan content across the platform.
