Disney's Q3 earnings top estimates on demand for experiences, company exits A+E Media stake

Key Points:

• Disney's stock rose over 4% in premarket trading following fiscal third quarter earnings that exceeded expectations, with adjusted earnings per share of $2.06 beating the forecast of $1.86 and revenue increasing 7% year over year to $25.17 billion.
• The company, under new CEO Josh D'Amaro, emphasized cost-cutting and growth in parks and streaming, announcing the sale of its 50% stake in A+E Global Media for $1.2 billion to fund an increase in share buybacks to $9 billion this year.
• Disney's parks and experiences segment showed strong growth, with US park attendance up 3% and global guests increasing 4%, driving a 10% revenue rise to $9.97 billion, supported by higher spending per customer and increased cruise and resort revenues.
• The entertainment division saw a 6% revenue increase to $11.35 billion, buoyed by "Toy Story 5" surpassing $1 billion at the box office and boosting consumer products sales, while the sports segment generated $4.5 billion in revenue amid record viewership for ESPN during the 2026 NBA and NHL playoffs.
• Disney reaffirmed its outlook for 12% adjusted earnings growth in 2026 and double-digit growth in 2027, despite macroeconomic uncertainties and some international attendance headwinds at domestic parks.