Disney Beats EPS Estimates on Parks, Streaming Gains

Disney reported third-quarter results that exceeded Wall Street projections on profit while revenue came in just below estimates, reflecting steady demand for its theme parks and continued gains in streaming even as broader economic pressures mount. Adjusted earnings per share reached $2.06, ahead of the $1.86 consensus, while revenue rose 7 percent to $25.17 billion against expectations of $25.38 billion.

The experiences segment, which includes parks and cruises, grew 10 percent to $9.97 billion. Domestic attendance increased 3 percent and per capita spending rose 4 percent, with particularly strong performance at Walt Disney World. Chief financial officer Hugh Johnston noted that these results contrasted with softer trends reported by competitors in the same Orlando market. Executives at Comcast’s NBCUniversal had cited weaker consumer sentiment and higher travel costs as factors weighing on attendance at its parks.

Those headwinds trace in part to the effects of the U.S.-Israel conflict with Iran and the resulting spike in oil prices, which have raised costs for travelers and squeezed household budgets. Yet Disney’s domestic parks appear to have held up better than some peers, suggesting that higher-income visitors or those willing to prioritize experiential spending continue to support the business.

Streaming revenue, driven mainly by Disney+ and Hulu, increased 11 percent to $5.53 billion. Growth came from higher subscriber counts, price increases and advertising. The company is also moving to deepen its presence in short-form video. It announced a partnership with TikTok that will bring curated fan-created content featuring characters from Marvel, Star Wars, Pixar and other properties into the Verts feed on Disney+. The pilot begins in the United States in the coming months, with wider rollout planned later. Participating creators will receive greater visibility on both platforms along with event access and development opportunities.

The move represents another step in Disney’s effort to meet audiences where they already spend time online, following an earlier, now-abandoned plan to work with OpenAI’s Sora video tool. The TikTok arrangement does not explicitly bar the use of artificial intelligence, though details remain under discussion.

Under new chief executive Josh D’Amaro, who assumed the role in March, Disney has also taken steps to simplify its portfolio and return capital to shareholders. The company agreed to sell its 50 percent stake in A+E Global Media to Hearst for $1.2 billion. Proceeds will help increase share buybacks to $9 billion for the year. Total operating income reached $5.6 billion, up from $4.6 billion a year earlier.

Shares rose more than 4 percent in premarket trading after the release. D’Amaro said the company views its stock as undervalued and has continued repurchases. Disney reaffirmed its target of 12 percent adjusted earnings growth for the full year.

The results illustrate how large media and entertainment companies are navigating a period of uneven consumer demand. Parks remain a reliable profit engine when domestic attendance holds, while streaming requires ongoing investment in both content and distribution channels to sustain momentum. The TikTok integration shows Disney testing new ways to blend professional intellectual property with user-generated material, a strategy that could shape how traditional studios compete for attention in fragmented digital spaces.