Toy Story 5 surpassed $1 billion in global box office revenue, lifting the franchise’s cumulative worldwide ticket sales above $4 billion.
The film increased viewing of earlier Toy Story titles on Disney+, contributing to a 6% year-over-year revenue rise in the Entertainment segment, which includes streaming, television networks, and film operations, to $11.35 billion.
Disney’s consumer products revenue posted its strongest year-over-year growth in 20 quarters, driven by Toy Story 5.
In adjusted earnings per share to $2.06
Disney’s fiscal third-quarter revenue increased 7% year over year to $25.25 billion, while net income attributable to Disney fell to $2.64 billion, or $1.51 per share, from $5.26 billion, or $2.92 per share, in the same period last year.
Revenue from the Experiences segment — which includes theme parks, cruise lines, and consumer products — rose 10% to $9.97 billion, with operating income climbing 20% to $3.02 billion.
Theme park admissions revenue grew 9%, supported by higher attendance and ticket prices, while resort and vacation revenue increased 17%. Domestic park attendance rose 3%, with per-capita spending up 4%.
Disney’s cruise business expanded capacity by about 50% compared with the same quarter last year, due to the addition of the Disney Destiny and Disney Adventure.
Subscription revenue from Disney+ and Hulu increased 15%, while advertising revenue grew 3%.
The Sports segment, which primarily includes ESPN, generated $4.5 billion in revenue, up 4% year over year, but operating income declined 17% to $858 million due to higher programming and production costs, including expenses tied to renewed sports rights agreements.
Audiences for the NBA and NHL championship series on ABC and ESPN more than doubled from a year earlier.
Disney announced an agreement with TikTok under which a curated selection of fan-created videos featuring Disney characters and stories will appear on Disney+.
Disney plans to transfer much of its consumer products business from the Experiences segment to the Entertainment segment beginning in the first quarter of fiscal 2027, aligning merchandise operations more closely with the studios that create its intellectual property.
The company increased its fiscal 2026 share repurchase target to at least $9 billion and plans to use approximately $1.2 billion in proceeds from the proposed sale of its 50% stake in A+E Global Media to Hearst Corporation to repurchase additional shares. The transaction is expected to close by the end of the fiscal year, subject to regulatory approval.
Disney maintained its forecast for fiscal 2026 adjusted earnings-per-share growth of about 12%, excluding the effect of an additional 53rd week in its financial calendar, or approximately 16% when the extra week is included.
