Disney's 'Toy Story 5' fuels streaming business and merchandise sales for June quarter

Disney said it expects fourth quarter segment operating income of **$4.9 billion**. This guidance reflects anticipated continued healthy growth in its parks group. However, the weak box office performance of live-action adaptation of "Moana" would impact results for the entertainment segment. The company said it would sell its 50% stake in A+E Global Media to co-owner Hearst Corporation, and use the estimated **$1.2 billion** in cash proceeds to repurchase Disney shares. This will increase the value of its fiscal 2026 share repurchases to at least **$9 billion**. Disney said the blockbuster success of "Toy Story 5" extended beyond the box office for the June quarter, as the hit film fueled sales of merchandise, added to engagement on the Disney+ streaming service, and attracted more visitors to its theme parks. CEO Josh D'Amaro, who took over in March, highlighted his strategy to invest in franchises like Toy Story to reach audiences outside the box office in a lengthy earnings letter to shareholders on Wednesday. The entertainment giant reported revenue of **$25.2 billion** in the quarter, up 7% from last year, but shy of Wall Street's forecasts of **$25.4 billion**, according to analysts surveyed by LSEG. Disney's per-share earnings rose 28% from a year ago to an adjusted **$2.06**, beating forecasts of **$1.86** a share. Disney's Parks and experiences division reported revenue of nearly **$10 billion**, up 10% from a year ago, fueled by a 4% increase in attendance at its theme parks, globally, and a 3% increase at its domestic parks. Analysts had expressed concern about Disney's U.S. parks, after Comcast CMCSA.O attributed softening attendance trends at its Universal theme parks in Orlando to higher fuel prices and weaker consumer sentiment. Operating income for the experiences segment rose to **$3 billion**, a 20% gain from a year ago, in part reflecting a **$100 million** tariff refund it received earlier in the quarter. The U.S. Treasury Department has been issuing refunds after the U.S. Supreme Court struck down President Donald Trump's global tariffs as illegal. Disney's Entertainment group reported **$11.3 billion** in revenue for the quarter, a gain of 6% from a year earlier, reflecting the performance of "Toy Story" and a 15% increase in subscription fees for the company's Disney+ and Hulu streaming services. Segment operating income rose 64% to nearly **$1.7 billion**. Sports reported revenue of **$4.5 billion** in the quarter, though income from the four-game sweeps that marked the early rounds of the NBA payoff games contributed to lower than anticipated operating income, which fell 17% to **$858 million**.

Disney's 'Toy Story 5' fuels streaming business and merchandise sales for June quarter

Fourth-quarter outlook

A+E stake sale to fund share repurchases

June quarter results beat on earnings but miss revenue

Parks, entertainment and streaming drive segment growth

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