Walt Disney Co. (NYSE:DIS) advanced nearly 5% in pre-market trading on Wednesday after reporting third-quarter adjusted earnings that comfortably exceeded analysts’ expectations, even though quarterly revenue came in slightly below forecasts.
Investors welcomed the stronger profitability and the company’s decision to increase its share repurchase programme.
Profit outperforms Wall Street forecasts
Disney reported adjusted earnings per share of $2.06 for the third quarter, beating the consensus estimate of $1.86 by $0.20.
Revenue increased 7% year over year to $25.25 billion from $23.7 billion, although it narrowly missed analysts’ expectations of $25.43 billion.
Total segment operating income climbed 21% to $5.6 billion, compared with $4.6 billion in the same quarter last year.
Higher buyback target supports investor sentiment
The entertainment group also announced a larger share repurchase programme, raising its fiscal 2026 buyback target to at least $9 billion.
The increase will be partly financed through approximately $1.2 billion generated from the sale of Disney’s 50% interest in A+E Global Media to Hearst Corporation.
“Our strong fiscal third-quarter results and reiterated full-year outlook reinforce our confidence that we are uniquely well positioned,” said CEO Josh D’Amaro and CFO Hugh Johnston in a shareholder letter.
Parks and entertainment drive operating growth
Disney’s Experiences division delivered one of the strongest performances during the quarter, with operating income rising 20% to $3.0 billion.
The segment benefited from a $100 million tariff refund, while global guest numbers increased 4%. Attendance at U.S. parks rose 3% and per-guest spending improved by 4%.
The Entertainment segment posted a 64% increase in operating income to $1.7 billion.
Meanwhile, operating income in the Sports division declined 17% to $858 million.
Full-year outlook remains unchanged
Disney reaffirmed its fiscal 2026 guidance, continuing to expect adjusted earnings per share growth of approximately 12%, excluding the impact of the 53rd week, or around 16% including that additional week.
The company expects total segment operating income of approximately $4.9 billion during the fourth quarter.
Looking further ahead, Disney continues to forecast double-digit adjusted EPS growth in fiscal 2027, excluding the impact of the extra week.
Disney stock price
