Disney beats clearly with 2.06 dollars per share but misses on revenue

Disney generated adjusted earnings of 2.06 dollars per share in the third quarter of financial year 2026 and therefore clearly beat expectations of 1.86 to 1.88 dollars. In the same quarter last year it had been 1.61 dollars, which corresponds to growth of 28 percent.

On revenue the group fell short of estimates. Revenue rose seven percent to 25.25 billion dollars, where around 25.4 billion had been expected. The quarter ended on 27 June and the figures appeared on 5 August. The share gained around four percent before the open.

Reported net profit fell to 2.64 billion dollars or 1.51 dollars per share, after 5.26 billion dollars a year earlier. The decline goes back to a one off tax benefit in the year earlier quarter connected with the tax treatment of Hulu.

Segment profit rose 21 percent to 5.56 billion dollars.

The short version

• Adjusted earnings in the third quarter of financial year 2026 were 2.06 dollars per share, against expectations of 1.86 to 1.88 dollars.
• Revenue rose seven percent to 25.25 billion dollars and therefore stayed below estimates of around 25.4 billion.
• The buyback target for financial year 2026 was raised to at least nine billion dollars.

The parks carry the result

The strongest area was again the business with theme parks, cruises and consumer products. Revenue rose ten percent to 9.97 billion dollars and operating profit 20 percent to a good three billion dollars.

Visitor numbers in the American parks grew three percent, and spending per visit around four percent.

That performance is notable because the competition reports the opposite. Rival Comcast had reported falling visitor numbers for its parks in Orlando in the previous quarter and explained that with weak consumer sentiment and higher travel costs. The conflict between the United States, Israel and Iran and the higher oil prices that came with it weigh on households.

Finance chief Hugh Johnston told CNBC that the domestic business is running exceptionally well at present.

Streaming grows through prices and advertising

The streaming business with Disney Plus and Hulu lifted its revenue eleven percent to 5.53 billion dollars. That was carried by more subscribers, by price rises and by additional advertising revenue.

The entertainment division overall reached revenue of 11.35 billion dollars, up six percent. Operating profit in that division rose 64 percent to 1.68 billion dollars.

As a driver the group names the latest Pixar film, which came to cinemas in June and is to appear on Disney Plus by the end of the year. The five films in that series have taken more than four billion dollars worldwide and reached more than two billion streaming hours according to the company.

On the television side the finals of the American basketball and ice hockey leagues brought more than 100 percent more viewers than in the previous season.

Buybacks raised to at least nine billion dollars

Disney has raised its buyback target for financial year 2026 to at least nine billion dollars, after eight billion previously. That is financed among other things by the sale of a 50 percent stake in A and E Global Media to the Hearst Corporation for around 1.2 billion dollars.

In addition around 100 million dollars flowed back after tariffs paid earlier were lifted.

For the full year the group is sticking to growth in adjusted earnings per share of around twelve percent. Adjusted for an additional week in this year calendar it would be about 16 percent.

Chief executive Josh D Amaro, in post since the middle of March, described the results as evidence that the group works as one connected business and not as a set of separate divisions. Planned are new attractions in Orlando and Anaheim as well as the already announced expansion of the cruise fleet.

A collaboration with the video platform TikTok was also announced, to be trialled first in the United States.

Frequently asked questions

Why did reported net profit fall

It fell to 2.64 billion dollars or 1.51 dollars per share, after 5.26 billion dollars a year earlier. The decline goes back to a one off tax benefit in the year earlier quarter connected with the tax treatment of Hulu.

How did the theme parks perform

Revenue in parks, cruises and consumer products rose ten percent to 9.97 billion dollars and operating profit 20 percent to a good three billion dollars. Visitor numbers in the American parks grew three percent and spending per visit around four percent.

How does Disney finance the higher buybacks

Among other things through the sale of a 50 percent stake in A and E Global Media to the Hearst Corporation for around 1.2 billion dollars. In addition around 100 million dollars flowed back after tariffs paid earlier were lifted.

This analysis is for information only and is not investment advice.