The Walt Disney Company (NYSE: DIS) reported revenue of $25.2 billion for its fiscal third quarter ended June 27, 2026, a 7% increase from $23.7 billion in the same period a year earlier. Total segment operating income rose 21% to $5.6 billion, and the company reiterated its full-year guidance in results released on August 5, 2026.
The quarter fell within a period in which large media companies have leaned on theme parks and streaming to offset pressure on traditional television. For Disney, the results reflected the impact of the Fubo transaction completed earlier in the fiscal year, alongside continued execution of its sports strategy and performance across its Entertainment, Sports and Experiences segments.
#Experiences Revenue Rises 10% On Parks And Cruise Strength
Experiences, the segment that includes Disney's theme parks, resorts, cruise line and consumer products, reported revenue of about $10 billion, up 10% from a year earlier. Segment operating income increased 20% to $3 billion.
Global guests, a metric the company defines as the sum of theme park attendance and passenger cruise days, grew 4%, while attendance at Disney's domestic parks rose 3%. The two newest cruise ships, the Disney Destiny and Disney Adventure, operated for their first full quarter.
Consumer Products recorded its strongest quarter of year-over-year revenue growth in 20 quarters, which the company linked to Toy Story 5 and Star Wars: The Mandalorian and Grogu merchandise. Toy Story 5 surpassed $1 billion in global box office during the quarter.
Disney recorded about $100 million in a tariff refund during the quarter, which it said accounted for roughly four points of the 20% Experiences operating income growth. The company said it may receive additional refunds in coming quarters.
#Streaming Gains Lift Entertainment While Sports Income Falls
Entertainment segment operating income rose 64% to $1.7 billion, which the company attributed to higher subscription and affiliate fees. Entertainment revenue increased 6% to $11.3 billion.
Operating income for the company's streaming video-on-demand business, which it reports as Entertainment SVOD, more than doubled to $712 million from $329 million, on revenue growth of 11%.
Sports segment operating income fell 17% to $858 million, which Disney attributed to higher programming and production costs, including timing effects from the NBA contract renewal and new sports rights. The company said the quarter was the most-watched fiscal Q3 for ESPN, ESPN2 and ESPN on ABC since 2016.
"We believe our shares are undervalued and we continued to lean into share repurchases during the quarter," Josh D'Amaro, Chief Executive Officer, and Hugh Johnston, Chief Financial Officer, said in the shareholder letter accompanying the results.
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#Disney Raises Buyback Target To At Least $9 Billion
Disney said it is now targeting at least $9 billion in share repurchases in fiscal 2026. The company repurchased $7.2 billion of stock over the first nine months of the year.
The company said it agreed in July 2026 to sell its 50% interest in A+E Global Media to an affiliate of co-owner Hearst Corporation for about $1.2 billion in cash, and plans to use the proceeds to repurchase additional shares.
Diluted earnings per share fell 48% to $1.51 from $2.92, and net income attributable to Disney declined to $2.6 billion from $5.3 billion. The company said the decreases reflected a comparison to a $3.3 billion non-cash tax benefit recorded in the prior-year quarter. Adjusted earnings per share, which excludes certain items, rose 28% to $2.06.
Results included restructuring and impairment charges of $900 million, most of which related to an impairment of the company's A+E investment. Disney said consumer softness at its Asia parks is expected to continue in the fiscal fourth quarter, and cited a softer advertising environment in domestic streaming.
Management guided to fourth-quarter total segment operating income of about $4.9 billion, including the impact of a 53rd week, and reiterated expected fiscal 2026 adjusted EPS growth of about 12% excluding that week. Regulatory and legal matters, including an FCC order for early television license renewals and pending securities and antitrust litigation, remain risks to the outlook, along with the performance of upcoming film releases.