Disney's Q3 Earnings Soar on 'Toy Story 5' Box Office and Theme Park Attendance

Disney's strong third quarter was driven by a $1 billion box office haul from 'Toy Story 5' and the draw of its US theme parks, which helped offset continued weakness in international tourism.

The company reported operating income climbed 20% to $3.02 billion in its Experiences division, which includes Disney's six global theme parks, cruise line, merchandise, and video game licensing. Revenue totaled $9.97 billion, with a 27% increase in operating income at domestic parks and a 13% decline for international parks.

The strong performance of 'Toy Story 5' also boosted Disney+ viewings of other Toy Story films and Toy Story merchandise sales, giving the company its strongest quarter of year-over-year growth in Consumer Products revenue in 20 quarters. The movie's success helped offset continued weakness from international tourism, which has been declining due to various reasons including tariffs and a crackdown on immigrants.

Disney also announced a global short-form content sharing deal with TikTok, which will bring Disney-focused fan-created content from TikTok to the Disney+ app. Shares climbed more than 3% before the market opened on Wednesday.