Disney (DIS) earnings Q3 2026

Disney posted mixed quarterly results on Wednesday, far surpassing Wall Street expectations for earnings while slightly missing estimates for revenue. 

The company’s quarterly results were once again lifted by its parks and streaming divisions. 

Revenue for Disney’s experiences segment, which includes global theme parks and cruises, was up 10% year over year to $9.97 billion. That growth came even as macroeconomic uncertainty continues to mount for consumers and appears to weigh on Disney’s parks peers.

“Domestically we’re doing extremely well right now,” CFO Hugh Johnston told CNBC, noting that park attendance in the U.S. was up 3% and per capita spending increased 4%. 

Johnston also called out the “very strong attendance” at Walt Disney World in Orlando. 

“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,” he added. 

Last month, Comcast’s NBCUniversal reported that its Orlando theme parks saw lower attendance during its fiscal quarter, with executives pointing to “weakness in consumer sentiment and higher travel costs affecting demand.” 

The effects of the U.S.-Israel conflict with Iran and related jump in oil prices has weighed on consumers. 

Meanwhile Disney’s entertainment streaming business – primarily made up of Disney+ and Hulu – once again posted gains. Revenue for the segment increased 11% to $5.53 billion during the quarter. The growth was particularly propelled by an increase in streaming customers and price hikes, as well as an increase in advertising revenue. 

The overall entertainment segment, which also includes traditional TV and theatrical releases in addition to streaming, saw revenue rise 6% to $11.35 billion. The success of “Toy Story 5” in theaters provided a boost, with Disney noting the animated film has surpassed $1 billion at the global box office. 

Disney has recently stopped reporting some metrics for the segment, such as a breakdown of revenue and operating income for its linear TV networks. It also no longer reports quarterly streaming subscriber numbers.

Here’s how Disney performed for its fiscal third quarter, ended June 27, compared to Wall Street’s estimates, according to LSEG:

• Earnings per share: $2.06 vs. $1.86 expected
• Revenue: $25.25 billion vs. $25.4 billion expected

Overall, Disney’s revenue rose 7% year over year to $25.25 billion during the quarter. 

Net income for Disney’s fiscal third quarter was $2.64 billion, or $1.51 per share, compared to $5.26 billion, or $2.92 per share during the same period last year. Disney’s fiscal third quarter of 2025 included one-time items primarily related to tax benefits associated with Disney’s purchase of Comcast’s Hulu stake. 

Adjusting for one-time items, including costs associated with restructuring, Disney reported earnings of $2.06 per share for its fiscal third quarter, up from adjusted EPS of $1.61 in the same quarter last year. 

Shares of Disney gained roughly 4% in premarket trading.

Revenue in Disney’s sports segment, which is made up primarily of ESPN, jumped 4% to $4.5 billion, largely driven by subscription and affiliate fees, as well as advertising. ESPN launched its own direct-to-consumer streaming service nearly a year ago. 

While sports rights fees have become a hefty cost for media companies like Disney, the company noted soaring TV ratings from the NBA and NHL postseasons on both its broadcast network ABC as well as pay TV channel ESPN. 

“The NBA and NHL Finals were super strong, over 100% growth in terms of viewership,” Johnston told CNBC. “The last time I think we saw these types of numbers was about 25 or 30 years ago.” 

Wednesday’s report marks the second quarterly release with CEO Josh D’Amaro at the helm after he took over for Bob Iger. Last quarter D’Amaro outlined his strategy for growth and opportunities at Disney, with a focus on investing in intellectual property to propel its theme parks and entertainment. 

In the release, Disney said it received a roughly $100 million tariff refund related to the Trump administration’s levies on trade partners and subsequent reversal.

Disney also said it was now targeting at least $9 billion in share repurchases in fiscal 2026, an increase from $8 billion previously and fueled by the sale of Disney’s 50% stake in A+E Global Media to Hearst. That deal amounts to roughly $1.2 billion in cash for Disney, it said.

On Wednesday, Disney also said it planned to shift much of its consumer products business from the experiences segment to the entertainment unit beginning in its fiscal first quarter of 2027. The company said it sees “strategic and operational benefits” of putting the consumer products with its entertainment business, as it combines the studios that create the IP with the merchandise that monetizes it. 

Disney separately announced on Wednesday a global deal with TikTok that it said would bring “an expansive collection of thoughtfully curated Disney-centric fan-created content from TikTok to Disney.” The move comes as media companies increasingly vie for more viewers for streaming services – particularly among younger generations of consumers who spend time on YouTube and TikTok.