Disney's Toy Story Success Fuels Broader Business Growth
Disney's latest Toy Story film proved to be a commercial success not only at the box office but also in other areas of its business. According to Disney CEO Josh D'Amaro, the company saw increases in merchandise sales, Disney+ engagement, and theme-park visits. This is part of Disney's strategy to create a holistic revenue stream across various platforms.
The company reported $25.2 billion in revenue for the quarter, up 7% from last year but slightly below estimates. However, adjusted earnings rose 28% to $2.06 per share, beating expectations. The Parks and Experiences segment led the way with a nearly 10% increase in revenue to almost $10 billion.
The Entertainment segment also saw improvements, with operating income rising 64% to nearly $1.7 billion. This was largely due to the company's focus on franchise content and higher prices for Disney+ and Hulu subscriptions. However, Sports profit fell partly due to a shorter NBA playoff run resulting in fewer high-margin games.
Disney plans to use proceeds from its sale of a 50% stake in A+E Global Media to Hearst to fund share repurchases, with a $9 billion buyback plan set for fiscal 2026. This move could boost earnings per share even if overall profit growth slows.