The Walt Disney Company has released its fiscal third-quarter 2026 earnings, beating Wall Street expectations with stronger-than-expected results driven by continued growth at its theme parks, record profitability for its streaming business, the box office performance of Toy Story 5, and a $100 million tariff refund.
The quarter covered the three-month period ending in June and marked Josh D’Amaro’s first full quarter as Disney CEO following his appointment in March.
Disney reported $25.2 billion in revenue, an increase of 7% compared to the same period last year. Operating income climbed 21% to $5.6 billion, while adjusted earnings per share rose from $1.61 to $2.06, exceeding analyst expectations.
Among the quarter’s other announcements, Disney confirmed it has agreed to sell its 50% stake in A+E Global Media to an affiliate of Hearst for $1.2 billion in cash. The company also announced it will move its consumer products division from Disney Experiences to Disney Entertainment, and revealed a new content partnership with TikTok.
“Decades of IP investment have built deep fan connections that translate into strong financial results,” D’Amaro said. “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.”
Disney Experiences
Disney Experiences posted another strong quarter, generating nearly $10 billion in revenue and more than $3 billion in operating income, up 20% from the previous year.
Guest attendance across Disney’s parks worldwide increased 4%, while attendance at domestic parks rose 3%. Average ticket revenue per guest also increased by 5%.
Disney noted that international travel to its U.S. parks continues to face some challenges, though those trends have begun to improve. The company also highlighted strong attendance at Disneyland Paris, boosted by the opening of World of Frozen.
The quarter was also the first to fully include operations from Disney Cruise Line’s newest ships, the Disney Destiny and Disney Adventure. Together, these ships increased stateroom capacity by about 50% compared to the prior-year quarter. Disney notes they are looking forward to bringing additional cruise capacity online in the years ahead.
Looking beyond this quarter, Disney noted that its Experiences segment posted an operating margin of approximately 30% through the first nine months of fiscal 2026, reflecting what the company described as the strong returns generated from its investments. Disney added that it expects future capital projects –including major expansions currently underway– to deliver double-digit returns over their lifetimes.
Entertainment
Disney’s Entertainment division brought in $11.3 billion in revenue and $1.7 billion in operating income, representing a 64% increase over the same quarter last year.
The company credited much of that success to Toy Story 5, which has now surpassed $1 billion at the worldwide box office, along with the release of The Devil Wears Prada 2.
Disney also acknowledged that The Mandalorian and Grogu and the live-action Moana performed below expectations in theaters but said both remain important parts of the company’s bigger franchise strategy.
Disney+
While Disney no longer releases Disney+ subscriber numbers, the company reported continued improvement in its direct-to-consumer business. Streaming operating income more than doubled to $712 million, compared to $329 million during the same quarter last year. Overall streaming revenue grew 11% to $5.5 billion, while subscription revenue increased 15%.
D’Amaro also reiterated Disney’s long-term vision for the platform, writing, “Our ambition is for Disney+ to become the digital centerpiece of The Walt Disney Company.”
Sports & Other Highlights
Disney’s Sports division generated $4.5 billion in revenue and $853 million in operating income, representing a 17% decline in operating income compared to last year.
Disney also reported receiving approximately $100 million through a tariff refund, reversing tariff payments made earlier in the fiscal year.
In addition to announcing the restructuring of its consumer products business, the company also unveiled a new partnership with TikTok that will bring select Disney fan-created short-form videos to Disney+ in the coming months.
