The Walt Disney Co. reported $25.2 billion in revenue for the June quarter, marking a 7% increase from the previous year, according to Reuters. While the revenue figure came in just shy of Wall Street expectations of $25.4 billion surveyed by LSEG and polled by FactSet as reported by msn.com, the company’s adjusted earnings per share rose 28% from a year ago to $2.06, beating analyst forecasts of $1.86.
Toy Story 5 and Theme Parks Fuel Disney Quarterly Growth
The entertainment giant pointed to the blockbuster performance of Pixar’s Toy Story 5
as a primary growth driver. Released on June 19, the film has passed $1 billion in global box office sales. According to nypost.com, the film’s success extended beyond ticket sales to fuel merchandise purchases, increase engagement on the Disney+ streaming platform, and draw additional visitors to Disney theme parks globally.
Following the earnings release, Disney shares jumped 4.6% in premarket trading on Wednesday, noted emirates247.com. CEO Josh D’Amaro, who took the helm at Disney in March, highlighted a corporate strategy focused on investing in major franchises like Toy Story to reach audiences outside the traditional box office. We have a good hand to play and I like where we sit,
D’Amaro said, adding that the company is performing significantly better than its competition.
Parks, Experiences, and Streaming Results
Disney’s Parks and Experiences division reported nearly $10 billion in revenue for the quarter, representing a 10% increase from the same period last year. Global theme park attendance rose 4%, while domestic parks saw a 3% increase in attendance alongside a 4% rise in per-capita spending. Operating income for the experiences segment climbed 20% to $3 billion.
The division’s operating income included a $100 million tariff refund received earlier in the quarter. The U.S. Treasury Department has been issuing these refunds after the U.S. Supreme Court struck down global tariffs as illegal. The parks growth outpaced industry rivals, contrasting with Comcast, which experienced softening attendance trends at Universal theme parks in Orlando due to higher fuel prices and weaker consumer sentiment.
The Entertainment group generated $11.3 billion in revenue, a 6% gain year-over-year, supported by the performance of Toy Story and a 15% increase in subscription fees across the Disney+ and Hulu streaming services. Operating income for the entertainment segment surged 64% to nearly $1.7 billion.
Conversely, Disney’s Sports division reported $4.5 billion in revenue, but operating income fell 17% to $858 million. The drop was attributed to income from four-game sweeps during the early rounds of the NBA playoffs, which reduced broadcast-related revenue opportunities.
Asset Sales, TikTok Partnership, and Future Outlook
To further capital return efforts, Disney announced plans to sell its 50% stake in A+E Global Media to co-owner Hearst Corporation for approximately $1.2 billion in cash proceeds. Disney intends to use these funds for share repurchases, increasing its fiscal 2026 share buyback target to at least $9 billion.
In a separate announcement on Wednesday, Disney and TikTok unveiled a partnership allowing TikTok creators to use characters and scenes from Disney movies and television shows in short-form videos. The agreement marks the first arrangement of its kind between the social media platform and a traditional media company, with fan-created content residing on both TikTok and Disney+.
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