Disney reported mixed quarterly results on Wednesday, with its parks and streaming divisions once again boosting the company’s overall performance.
Disney’s experiences segment revenue, which includes global theme parks and cruises, increased by 10% year over year to $9.97 billion. This growth occurred despite ongoing macroeconomic uncertainty affecting consumers and seemingly impacting Disney’s park competitors.
CEO Josh D’Amaro wrote in a letter to shareholders: “Our strong fiscal Q3 results and reiterated full-year outlook reinforce our confidence that we are uniquely well positioned. Decades of IP investment have built deep fan connections that translate into strong financial results. Our accelerating global guests growth at Experiences, Toy Story 5’s theatrical and consumer products success, and strong ESPN viewership gains all helped expand our consumer reach this quarter. Together, our results show a unique ability to engage consumers at scale, both digitally and physically, even amid macro uncertainty.”
Q3 Highlights
- Revenues increased 7% for the third quarter to $25.2 billion from $23.7 billion in Q3 fiscal 2025.
- Income before income taxes increased 14% to $3.6 billion from $3.2 billion in Q3 fiscal 2025.
- Total segment operating income increased 21% to $5.6 billion from $4.6 billion in Q3 fiscal 2025.
- Diluted earnings per share (EPS) decreased to $1.51 from $2.92 in Q3 fiscal 2025. Adjusted EPS(1) increased to $2.06 from $1.61 in Q3 fiscal 2025.
Moving foreard, Disney expects fiscal 2026 adjusted EPS growth of approximately 12%, and adjusted EPS growth of approximately 16%.
The company is also now targeting at least $9 billion in share repurchases in fiscal 2026.
CFO Hugh Johnston said in an interview following the release, park attendance in the U.S. was up 3% and per capita spending increased 4%. “Domestically we’re doing extremely well right now. “Those numbers are somewhat different than what you would have seen from our competitor down there, as well as some of the reported traffic coming through Orlando [International] Airport,”
Shares of Disney gained roughly 4% in premarket trading, following the announcement.
By CEO NA Editorial Staff
