Disney Beats EPS Estimates on Parks, Streaming Gains

Disney delivered a solid fiscal third quarter beat on earnings, driven by strength in its theme parks and streaming operations even as broader economic pressures linger for American families. The company reported adjusted earnings per share of $2.06, well above the $1.86 analysts had projected, while revenue rose 7 percent to $25.17 billion, coming in just shy of forecasts.

Parks and experiences led the way, with revenue climbing 10 percent to $9.97 billion. Domestic attendance increased 3 percent and per capita spending rose 4 percent, according to CFO Hugh Johnston. Walt Disney World in Orlando posted particularly strong numbers, a contrast to the weaker results reported last month by rival Comcast's NBCUniversal parks in the same market. Johnston noted the difference stood out against both competitor performance and airport traffic data in the area. Those gains came despite higher travel costs and consumer caution tied to recent geopolitical tensions and oil price spikes.

Streaming also contributed, with the entertainment segment up 11 percent to $5.53 billion. Subscriber growth, price increases, and higher advertising revenue all played roles. The company continues to push into short-form video through a new partnership with TikTok that will bring fan-created content featuring Marvel, Star Wars, and Pixar characters into the Disney Plus app. The pilot begins in the United States in coming months, with selected creators gaining extra visibility and event access in exchange for their videos appearing on both platforms.

New CEO Josh D'Amaro, who took over in March, emphasized cost discipline and shareholder returns. The company is selling its 50 percent stake in A+E Global Media to Hearst for $1.2 billion and increasing its share repurchase target to $9 billion for the year. D'Amaro said the moves reflect confidence that shares remain undervalued. Total operating income reached $5.6 billion, up from $4.6 billion a year earlier.

Shares rose more than 4 percent in premarket trading following the release. The results mark the second report under D'Amaro and come as the stock has fallen 17 percent over the past year. Disney reaffirmed its full-year outlook for 12 percent adjusted earnings growth.

The quarter highlights how core attractions and direct-to-consumer platforms can deliver when managed tightly, even as competitors feel the effects of softer consumer sentiment. Parks remain a tangible draw for families willing to spend on experiences, while streaming benefits from steady additions and ad dollars. The TikTok tie-up shows an effort to meet younger audiences where they already spend time, though it also pulls Disney further into the fast-moving world of user-generated clips. With buybacks ramping up and noncore assets trimmed, the focus stays on core operations that have shown resilience.