Disney Earnings Buoyed By ‘Toy Story 5’, Theme Parks, Streaming Profit; Books $100M Tariff Refund
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- Disney reported fiscal Q3 operating income of $5.6 billion (up 21%) and revenue of $25.2 billion (up 7%), with adjusted EPS of $2.06 versus $1.61 a year earlier, beating Wall Street forecasts in Josh D'Amaro's first full quarter as CEO.
- Toy Story 5 surpassed $1 billion in global box office since its June 19 release, driving the Entertainment division's profit up 64% to $1.7 billion on $11.3 billion in revenue alongside The Devil Wears Prada 2.
- Disney+ SVOD operating income more than doubled to $712 million from $329 million on $5.5 billion in revenue (up 11%), with subscription fees rising 15% and Disney+ app unification letting Hulu standalone and bundle subscribers link profiles and watch history.
- Experiences profit rose 20% to over $3 billion on nearly $10 billion in revenue, with domestic park attendance up 3% and Disneyland Paris gaining traction after the World of Frozen opening, partially offsetting moderating international attendance headwinds.
- ESPN sports profit fell 17% to $853 million on $4.5 billion in revenue, hit by higher programming and production costs, contractual rate increases, the NBA contract renewal timing, and a carriage dispute resolution Disney tied to the YouTube TV fight.
- Disney booked about $100 million in a tariff refund for the quarter, announced moving consumer products under Studios, agreed to sell its A+E Global Media stake to a Hearst affiliate for $1.2 billion, and unveiled a global short-form content partnership with TikTok.
- Disney+ plans to triple its local original series over three years and begin introducing a "membership ecosystem" in Spring 2027, while more college football content including College GameDay simulcasts moves to the platform this fall.
Why it matters: A 21% operating income jump gives new CEO D'Amaro a clean debut to consolidate franchises, parks, and a TikTok-amplified content flywheel, but ESPN's 17% profit decline shows sports rights inflation and carriage disputes remain the unresolved drag — even on a quarter where Disney booked a $100 million tariff refund.
