Disney Surges as Q3 Earnings Outpace Expectations

Walt Disney's fiscal third-quarter results exceeded management's prior operating-income guidance, driven by record performance at Disney Experiences and continued gains in streaming and sports. Chief Executive Officer Josh D'Amaro said total segment operating income increased 21% from the prior-year quarter while company revenue rose 7%. The company cited particular strength at Walt Disney World, additional capacity at Disney Cruise Line, and the opening of World of Frozen at Disneyland Paris.

Disney Experiences generated record fiscal third-quarter revenue and segment operating income, with segment revenue reaching $10 billion, up 10% from a year earlier. Global guest volume increased 4%, while domestic parks attendance rose 3% and domestic per-capita spending grew 4%. Disney expects Experiences operating-income growth to reach the high end of its previously provided high-single-digit range for fiscal 2026.

Disney's subscription-video-on-demand business produced a 13% operating margin in the third quarter, and the company remains on track for double-digit SVOD margins in fiscal 2026. Disney+ subscribers are expected to be able to access live television and add-ons by the end of the calendar year.