Walt Disney Co (The)
Q3 2026 Earnings
Market Reaction
Did DIS Beat Earnings? Q3 2026 Results
Walt Disney Co delivered a strong fiscal third quarter, posting adjusted EPS of $2.06 on revenue of $25.25 billion, up 6.8% year over year, extending its streak of beating consensus EPS estimates to five consecutive quarters. The standout engine behind the results was the Experiences segment, where operating income climbed 20% to $3.02 billion on 10% revenue growth, fueled by healthy domestic park attendance and a significantly expanded Disney Cruise Line fleet. Entertainment was equally compelling, with segment operating income surging 64% to $1.68 billion as Disney+ and Hulu SVOD more than doubled their combined operating income to $712.00 million on 15% subscription revenue growth. Sports remained the quarter's soft spot, with ESPN operating income declining 17% to $858.00 million amid NBA Playoff sweeps and a carriage dispute, a dynamic that had kept some investors cautious heading into the print. Looking ahead, Disney reiterated full-year adjusted EPS growth of approximately 16% including the 53rd week and guided Q4 total segment operating income to approximately $4.90 billion, while lifting its share repurchase target for fiscal 2026 to at least $9.00 billion.
- Toy Story 5 surpassed $1 billion global box office, lifting Consumer Products revenue growth to strongest in 20 quarters
- Disney Cruise Line fleet expansion with Disney Destiny and Disney Adventure added approximately 50% stateroom capacity
- Entertainment SVOD subscription revenue grew 15% driven by both rate and volume
- Walt Disney World had stand-out quarter with healthy domestic tourist and annual passholder attendance increases
- 4% per capita spending growth at domestic parks
- Approximately $100 million tariff refund in the quarter contributing roughly 4 points of Experiences OI growth
- ESPN viewership gains with NBA and NHL playoff ratings more than doubling year over year
- Disneyland Paris attendance growth following World of Frozen opening
“Our strong fiscal Q3 results and reiterated full-year outlook reinforce our confidence that we are uniquely well positioned. Decades of IP investment have built deep fan connections that translate into strong financial results.”
Disney CEO, on the earnings call
Forward Guidance & Outlook
Disney reiterated its fiscal 2026 outlook: adjusted EPS growth of approximately 12% excluding the 53rd week, or approximately 16% including the 53rd week. Q4 total segment operating income is expected at approximately $4.9 billion, with the 53rd week contributing approximately $600 million. Experiences segment operating income is now expected at the high end of prior high-single-digit growth guidance for the fiscal year (excluding 53rd week). Sports segment operating income expected to grow mid-single digits for the year (excluding 53rd week). Entertainment segment operating income expected to deliver double-digit growth for the year (excluding 53rd week), though Q4 will reflect Moana's box office underperformance and softer domestic SVOD advertising. Cash from operations expected at least $19 billion and capital expenditures approximately $9 billion for fiscal 2026. Share repurchases now targeted at least $9 billion for fiscal 2026. For fiscal 2027, the company continues to expect double-digit adjusted EPS growth excluding the 53rd week impact. Entertainment SVOD operating margin expected to be double-digit for full-year fiscal 2026 (excluding 53rd week). Asia parks softness expected to continue in fiscal Q4.
DIS YoY Financials
DIS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.