Key Financial Data
- Fiscal Q3 Total revenue: $25.25 billion (+7% year-over)
- Income before income taxes: $3.65 billion (+14%)
- Total segment operating income: $5.56 billion (+21%)
- Net income attributable to Disney: $2.64 billion (-49.9%)
- Entertainment revenue: $11.35 billion (+6%)
- Entertainment operating income: $1.68 billion (+64%)
- Entertainment subscription and affiliate revenue: $7.55 billion (+12%)
- Entertainment advertising revenue: $1.63 billion (-1%)
- Entertainment content sales revenue: $1.60 billion (-6%)
- Entertainment SVOD revenue: $5.53 billion (+11%)
- Entertainment SVOD subscription revenue: $4.72 billion (+15%)
- Entertainment SVOD advertising revenue: $851 million (+3%)
- Sports revenue: $4.50 billion (+4%)
- Sports subscription and affiliate revenue: $3.14 billion (+8%)
- Sports advertising revenue: $1.20 billion (+5%)
- Domestic Parks and Experiences revenue: $7.12 billion (+11%)
- Domestic Parks and Experiences operating income: $2.09 billion (+27%)
- International Parks and Experiences revenue: $1.79 billion (+6%)
- International Parks and Experiences operating income: $369 million (-13%)
- Consumer Products revenue: $1.07 billion (+7%)
- Read more Q2 2026 media earnings | Disney coverage
The Walt Disney Company reported a boost in overall revenue during its fiscal third quarter (Q3, coincides with calendar Q2) of the year, with the bump attributed to higher earnings from its streaming platforms, theme parks and consumer products that offset declines at sports network ESPN.
Revenue increased 7 percent to $25.25 billion during the quarter ended June 27, up from $23.65 billion a year earlier. Total segment operating income rose 21 percent to $5.56 billion, while income before taxes increased 14 percent to $3.65 billion.
Net income attributable to Disney fell to $2.64 billion from $5.26 billion. The year-ago period included a large non-cash tax benefit tied to Hulu’s tax classification, executives said in a news release.
Entertainment revenue rose 6 percent to $11.35 billion, while segment operating income increased 64 percent to $1.68 billion. Subscription and affiliate revenue grew 12 percent, reflecting the Fubo transaction, higher rates, subscriber growth and favorable currency movements.
Advertising revenue within Entertainment declined 1 percent to $1.63 billion as lower rates offset higher impressions and contributions from Fubo. Content sales revenue fell 6 percent to $1.60 billion.
Disney’s subscription streaming businesses, including Disney Plus and Hulu but excluding its pay television businesses Fubo and Hulu with Live TV, generated $5.53 billion in revenue, up 11 percent. (Fubo reported its earnings separately on Wednesday.) Subscription revenue increased 15 percent to $4.72 billion, driven by subscriber growth and higher rates, while streaming advertising revenue rose 3 percent to $851 million.
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Streaming operating income more than doubled to $712 million from $329 million, with the operating margin expanding to 12.9 percent from about 6.6 percent. Disney did not disclose separate subscriber totals for Disney Plus or Hulu.
Sports revenue increased 4 percent to $4.50 billion, including a 5 percent increase in advertising revenue. Sports operating income fell 17 percent to $858 million as higher programming costs, new rights expenses and changes in the timing of NBA rights costs outweighed revenue growth.
Disney said the decline was somewhat steeper than expected because of four-game sweeps during the early NBA playoff rounds and a network carriage dispute.
Income from Disney’s theme parks and cruise lines, which are reported as its “experiences” business, climbed 10 percent to $9.97 billion, while operating income increased 20 percent to $3.02 billion. Domestic parks and experiences revenue rose 11 percent, supported by higher attendance, guest spending and expanded Disney Cruise Line capacity.
“During my first five months as CEO, I’ve been focused on ensuring that we execute as one company around a unified strategy, and what we’re seeing this quarter is proof that coordinating our franchises, sharing data and technology and building seamless fan experiences works” Disney CEO Josh D’Amaro told investors during a conference call on Wednesday.
He continued: “We find ourselves in an environment where consumers have more options than ever for their time…they keep choosing to spend their time with Disney.”
Disney said its entertainment business was bolstered by strong demand for its latest Pixar film “Toy Story 5,” which opened in theaters in June and is expected to come to Disney Plus by the end of the year. On the television side, interest in the NBA Finals on ESPN and ABC, coupled with playoff and championship games from the NHL, increased viewership to Disney’s linear channels during its fiscal Q3.
Moving forward, Disney says it struck a partnership with social video platform TikTok that will allow the service to bring fan-curated content to its hundreds of millions of monthly users.
The agreement will pilot in the United States in the coming months, with plans to expand into other markets later. Under the deal, short-form videos from participating TikTok creators will appear on both TikTok and Verts, the short-form video feature inside Disney Plus.
The videos will feature characters, franchises and stories from across Disney’s portfolio, including Pixar, Marvel, Star Wars and FX. TikTok will also give creators access to assets tied to hundreds of Disney films and series, allowing them to create content using scenes and moments from the company’s library.
Disney said the videos will be refreshed regularly to reflect timely fan conversations and encourage Disney Plus subscribers to engage with the company’s stories in different formats.
“The best storytellers are fans first,” Disney’s Chief Marketing and Brand Officer Asad Ayaz said on Wednesday. “That has always been true at Disney, and today, fans are celebrating our stories in entirely new ways. This collaboration creates a new bridge between the stories we tell and the creativity they inspire, giving creators a bigger stage to share what they’ve made, and audiences more to discover on Disney Plus every day.”
Disney and TikTok said fan-created videos play an increasingly important role in how audiences discover movies and television shows, discuss franchises and build online communities around entertainment.
“Creators are at the heart of everything we do at TikTok,” Dawn Yang, the Global Head of Entertainment at TikTok, said in a statement. “Their creativity extends the life of films and shows into conversations that fans discover and share. Together with Disney, we’re bringing the authentic creator expression of the TikTok community to Disney Plus, inviting audiences to experience the shared creativity that makes fandom so powerful.”
The partnership also includes the Disney Creator Ambassador Program, a jointly run initiative that will give selected creators special rewards, increased visibility, access to exclusive events and career development opportunities. Disney said the program is part of its effort to build relationships with emerging creative talent in partnership with TikTok.
TikTok said users shared an average of 6.5 million film and television-related posts per day last year. The company also said nearly half of surveyed viewers reported watching a movie or television show on streaming or television after discovering entertainment content on TikTok.
