Disney Q3 2026 earnings: profit beats estimates on parks and streaming strength
Disney topped profit expectations on strong theme-park and streaming results, though revenue fell just short of forecasts; it also raised its buyback plan.
| Q3 2026 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $2.06 | $1.88 | +9.6% |
| Revenue | $25.25B | $25.66B | -1.6% |
Key takeaways
- Adjusted profit per share came in well above what analysts had penciled in, and was up sharply from $1.61 a year earlier — the beat was driven mainly by theme parks and streaming, which both grew faster and more profitably than expected.
- Total revenue rose 7% from a year ago but landed just under Wall Street’s forecast, showing growth is still solid even though it didn’t quite hit the number analysts were modeling.
- Theme parks, cruises and consumer products (Disney’s ‘Experiences’ segment) had a record quarter, with revenue up 10% and profit up about 20% to over $3 billion, helped by more visitors, higher spending per guest, and merchandise tied to Toy Story 5.
- International park attendance, especially in Shanghai and Hong Kong, stayed weak, and management expects that softness to continue into the current quarter.
- Streaming (Disney+ and Hulu) revenue grew 11% to $5.53 billion, with profit margin reaching 13% for the quarter; the company said it’s still on track for double-digit streaming margins for the full year, a sign the business has moved from cash-burning to reliably profitable.
- Management raised its full-year share buyback target to at least $9 billion, up from $8 billion, partly funded by proceeds from selling its stake in A+E Global Media — a move that returns more cash to shareholders rather than reinvesting it.
- The company also booked a $100 million tariff refund during the quarter, a one-time boost rather than an ongoing trend.
- For the rest of fiscal 2026, Disney now expects profit growth in its parks and experiences business to come in at the high end of its previously guided high-single-digit range.
- Looking at trailing-twelve-month trends, Disney’s overall profitability has been improving — earnings per share are up nearly 28% from a year earlier even though revenue grew a more modest 3%, suggesting the company is getting more efficient rather than just growing bigger.
- Disney also outlined plans to turn Disney+ into a broader digital hub by spring 2027, adding games, merchandise, and other services to keep subscribers engaged longer.
Q3 2026 in context
| Metric | Jun 2026 | Jun 2025 | Change |
|---|---|---|---|
| Revenue | $25.2B | $23.6B | +6.8% |
| Net income | $2.6B | $5.3B | -49.9% |
| Free cash flow | $3.1B | $1.9B | +62.6% |
| Diluted EPS | $1.51 | $2.92 | -48.3% |
| Operating margin | 22.0% | 19.3% | +2.7 pts |
| Net margin | 10.4% | 22.2% | -11.8 pts |
Figures for the quarter ended Jun 2026 and the quarter ended Jun 2025, as reported to the SEC.
How the stock took it
Walt Disney Co closed at $98.18 on Aug 4, 2026, the last session before the report, and at $104.68 on Aug 6, 2026, the first session after it — +6.6% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| May 6, 2026 | $100.48 | $108.66 | +8.1% |
| Feb 2, 2026 | $112.80 | $104.22 | -7.6% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 37.2% | Trailing 12 months |
| Operating margin | 13.5% | Trailing 12 months |
| Net profit margin | 11.5% | Trailing 12 months |
| Pretax margin | 12.7% | Trailing 12 months |
| EPS | $6.25 | Trailing 12 months |
| Revenue growth (YoY) | 3.4% | Trailing 12 months |
| EPS growth (YoY) | 27.6% | Trailing 12 months |
| Return on equity | 10.3% | Trailing 12 months |
Sources: company report · earnings call · financial news coverage