Disney Beats EPS Estimates on Parks, Streaming Gains

Disney delivered a mixed third-quarter performance on Wednesday, beating Wall Street expectations on earnings while falling just short on revenue. The results underscore how the entertainment giant continues to extract growth from its theme parks and streaming services even as broader economic pressures weigh on American households.

The company posted adjusted earnings per share of $2.06, well above the $1.86 analysts had forecast. Revenue rose 7 percent to $25.17 billion, missing the $25.38 billion consensus. Much of the upside came from the experiences division, which includes parks and cruises. That segment generated $9.97 billion, up 10 percent from a year earlier. Domestic park attendance climbed 3 percent while per capita spending increased 4 percent, according to chief financial officer Hugh Johnston. He singled out robust demand at Walt Disney World in Orlando.

Those gains stand in contrast to results at rival Comcast, whose NBCUniversal parks in the same market reported weaker attendance amid what executives described as soft consumer sentiment and higher travel costs. Johnston acknowledged the divergence, noting that Disney’s numbers differed from traffic trends at Orlando International Airport. Rising oil prices tied to U.S. involvement in Middle East conflicts have added to household expenses, yet Disney’s domestic parks appear insulated for now.

Streaming also contributed. Revenue from Disney+ and Hulu grew 11 percent to $5.53 billion, driven by subscriber gains, advertising increases, and recent price hikes. The company has repeatedly raised subscription costs in recent years, a move that has helped margins but placed additional strain on households already facing higher living expenses.

In a separate move, Disney announced it would sell its 50 percent stake in A+E Global Media to Hearst for $1.2 billion. The proceeds will help fund an increase in share buybacks to $9 billion this year. Chief executive Josh D’Amaro, who assumed the role in March, said the company believes its shares remain undervalued and will continue repurchasing stock. Operating income reached $5.6 billion, up from $4.6 billion a year earlier.

Separately, Disney disclosed a partnership with TikTok that will allow select creators to incorporate characters and scenes from Marvel, Star Wars, Pixar, and other properties into short-form videos. The content will appear on both TikTok and a new video feed inside Disney+. The pilot begins in the United States in coming months. The arrangement reflects Disney’s ongoing effort to capture younger audiences who have migrated to short-form platforms, even as the company continues to navigate questions about long-term profitability in streaming.

Disney shares rose more than 4 percent in premarket trading following the release. The company reaffirmed its full-year forecast for 12 percent adjusted earnings growth.