Disney earnings boosted by ‘Toy Story 5’, theme parks — and new CEO strikes deal with TikTok

Disney said the blockbuster success of “Toy Story 5” prolonged past the box workplace for the June quarter, as the hit movie fueled sales of merchandise, added to engagement on the Disney+ streaming service, and attracted more guests to its theme parks.

Shares of the company rose more than 3% on Wednesday after the outcomes.

CEO Josh D’Amaro, who took over in March, highlighted his strategy to invest in franchises like Toy Story to achieve audiences outdoors the box workplace in a prolonged earnings letter to shareholders on Wednesday.

Disney CEO Josh D’Amaro highlighted his strategy to invest in franchises like Toy Story to achieve audiences outdoors the box workplace Getty Images

Separately, Disney and TikTok announced a deal on Wednesday that will permit TikTok creators to make use of characters and scenes from Disney films and TV exhibits in short-form videos, the first settlement of its form between the social media platform and a conventional media company.

The leisure large reported income of $25.2 billion in the quarter, up 7% from last yr, however 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 yr in the past to an adjusted $2.06, beating forecasts of $1.86 a share.

The company said it will promote its 50% stake in A+E Global Media to co-owner Hearst Corp., and use the estimated $1.2 billion in money proceeds to repurchase Disney shares. This will increase the worth of its fiscal 2026 share repurchases to at the least $9 billion.

“Toy Story 5” helped Disney’s Entertainment group report $11.3 billion in income for the quarter, a gain of 6%. ©Walt Disney Co./Courtesy Everett Collection

Disney’s Parks and experiences division reported income of almost $10 billion, up 10% from a yr in the past, fueled by a 4% increase in attendance at its theme parks, globally, and a 3% increase at its home parks.

Analysts had expressed concern about Disney’s US parks, after Comcast attributed softening attendance developments at its Universal theme parks in Orlando to larger fuel costs and weaker shopper sentiment.

Operating income for the experiences phase rose to $3 billion, a 20% gain from a yr in the past, partially reflecting a $100 million tariff refund it obtained earlier in the quarter. The Treasury Department has been issuing refunds after the US Supreme Court struck down President Trump’s global tariffs as unlawful.

Disney’s Parks and experiences division reported income of almost $10 billion, up 10% from a yr in the past. Getty Images

Disney’s Entertainment group reported $11.3 billion in income for the quarter, a gain of 6% from a yr earlier, reflecting the performance of “Toy Story” and a 15% increase in subscription fees for the company’s Disney+ and Hulu streaming companies. Segment working income rose 64% to almost $1.7 billion.

D’Amaro said during an investor call that Disney+ would continue to evolve, including games, merchandise and other experiences. He said the company also is contemplating launching a free streaming product to achieve customers who’re price delicate, which may doubtlessly entice more people to subscribe to Disney+.

Sports reported income of $4.5 billion in the quarter, though income from the four-game sweeps that marked the early rounds of the NBA playoff games contributed to lower-than-anticipated working income, which fell 17% to $858 million.

Chief Financial Officer Hugh Johnston told traders that the company has bought out its promoting stock for Super Bowl LXI in February.

Disney said it expects fourth quarter phase working income of $4.9 billion. This steerage displays anticipated continued healthy growth in its parks group.

However, the weak box workplace performance of live-action adaptation of “Moana” would affect outcomes for the leisure phase.

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