Disney Q3 adjusted EPS beats on Toy Story 5 performance; plans $9 bln buyback
DIS•Drivers of the quarter
- Parks & Experiences - Higher domestic park attendance, cruise line expansion, and a tariff refund drove Experiences segment revenue and operating income growth.
- Toy Story 5 & Consumer Products - Toy Story 5 box office and merchandise sales, along with Star Wars merchandise, boosted Entertainment and Consumer Products revenue.
- Streaming growth - Entertainment SVOD revenue rose 11%, driven by higher subscription revenue and international content performance.
Q3 results and revenue
Disney's fiscal Q3 revenue grew 7% year over year, slightly missing analyst expectations, while adjusted EPS rose 28% year over year and beat analyst expectations.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q3 Revenue | Slight Miss* | $25.25 bln | $25.40 bln (21 Analysts) |
| Q3 Adjusted EPS | Beat | $2.06 | $1.86 (22 Analysts) |
| Q3 EPS | $1.51 | ||
| Q3 Free Cash Flow | $3.07 bln | ||
| Q3 Pretax Profit | $3.65 bln | ||
| Q3 Segment operating income | $5.56 bln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
