Disney Q3 2026 earnings beat on parks and streaming strength

Disney Q3 2026 earnings beat on parks and streaming strength

Wed, August 5, 2026 at 3:10 PM GMT+3 3 min read

• DIS +2.87%

Disney reported fiscal third-quarter results on Wednesday that surpassed Wall Street expectations for earnings, driven by strength in its theme parks and streaming businesses. On an adjusted basis, Disney earned $2.06 per share, compared with $1.61 in the same quarter a year ago. Wall Street had expected adjusted EPS of $1.86, according to CNBC.

Total revenue rose 7% year over year to $25.25 billion for the quarter ended June 27. That fell slightly short of analyst expectations of $25.4 billion, according to CNBC. Under GAAP accounting, Disney recorded net income of $2.64 billion, or $1.51 per share; a year earlier the figure stood at $5.26 billion, or $2.92 per share. The decline reflects one-time tax benefits included in the prior-year quarter, the company said.

Disney's experiences segment, which covers theme parks, cruise lines, and consumer products, generated $9.97 billion in revenue, a 10% increase from the prior year, and $3.02 billion in segment operating income. Domestic park attendance rose 3% and per-capita spending was up 4% in the quarter. Chief Financial Officer Hugh Johnston called out the performance of Walt Disney World specifically, noting domestic results diverged from those of a competitor in Orlando, according to CNBC. Comcast's Universal theme parks in Orlando reported lower attendance in a comparable period, citing weak consumer sentiment and higher travel costs, according to The Wall Street Journal.

Disney's entertainment streaming business — which encompasses Disney+ and Hulu — saw revenue grow 11% to $5.53 billion, with gains attributable to a larger subscriber base, rate increases, and stronger ad sales. Across the full entertainment segment — encompassing streaming alongside linear TV and film — revenue reached $11.35 billion, a 6% year-over-year gain, while operating income improved to $1.68 billion from $1.02 billion in the prior-year period. The animated film "Toy Story 5" crossed $1 billion in global box-office receipts since its June 19 release, the company said, contributing to both theatrical and consumer-product revenue.

The sports segment, led by ESPN, generated $4.5 billion in revenue, a 4% rise, but operating income slipped 17% to $858 million, partly because several early-round NBA playoff series ended more quickly than in the prior year, according to the Wall Street Journal. Johnston said NBA and NHL Finals viewership was up more than 100%.

Disney raised its share-buyback target for fiscal 2026 to a minimum of $9 billion, topping the previous $8 billion goal, with the proceeds from its $1.2 billion divestiture of a 50% stake in A+E Global Media to Hearst Corp. helping to fund the effort. Disney also said it collected approximately $100 million after earlier tariff payments tied to Trump administration trade actions were subsequently reversed.

Disney stock rose roughly 4% in premarket trading on Wednesday.

When reporting second-quarter results in May, Disney upgraded its full-year adjusted earnings growth target to approximately 12% and raised its share-repurchase goal for fiscal 2026 to at least $8 billion. Chief Executive Officer Josh D'Amaro, who took over from Bob Iger in mid-March, outlined a strategy centered on investment in intellectual property and technology to drive revenue across both its digital and physical businesses.