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◆ Inside the Latest Quarter (Q3 FY2026)

Walt Disney (DIS) — the variant view

Disney's Q3 FY2026 had parks profit up 20%, streaming profit more than doubled and ESPN profit down 17%, with an $812 million A+E write-down below the line.

📈 DIS valuation, revenue & earnings — P/E, P/S, revenue, EPS →

The third quarter of fiscal 2026, the three months to 27 June, showed every part of Disney moving in a different direction. Revenue rose 7% to $25,248 million and total segment operating income 21% to $5,555 million1. Adjusted EPS rose 28% to $2.06, while reported diluted EPS fell 48% to $1.512, because the year-earlier quarter included a $3,277 million Hulu tax benefit3.

Disney segment operating income growth, Q3 FY2026 (%)+64Entertainment+20Experiences-17Sports+21TotalWalt Disney Q3 FY2026 earnings release
Two segments up sharply, one down.

Experiences led. Its revenue rose 10% to $9,968 million and its operating income 20% to $3,017 million, with roughly four points from a $100 million tariff refund4. Domestic parks earned $2,088 million, up 27%, while international parks earned $369 million, down 13%5. The two new cruise ships raised stateroom capacity about 50%6.

Entertainment's operating income rose 64% to $1,680 million7. SVOD earned $712 million against $329 million a year earlier8. Toy Story 5 passed $1 billion at the global box office, but The Mandalorian and Grogu and live-action Moana "underperformed our box office expectations"9.

Sports went the other way. Revenue rose 4% to $4,500 million but operating income fell 17% to $858 million10, on higher rights costs, NBA playoff sweeps and a carriage dispute.

Below the segments, Disney impaired its A+E stake by $812 million after agreeing to sell it to Hearst for about $1.2 billion11. It bought back 17 million shares for $1.7 billion in the quarter12, raised its fiscal 2026 buyback target to at least $9 billion13, and said it would move much of Consumer Products into Entertainment from fiscal 202714. It guided fourth-quarter segment operating income to $4.9 billion, about $600 million of it from the 53rd week15.

The earlier quarters of the year were weaker. In the first quarter Entertainment's operating income fell 35% to $1,100 million and Sports' 23% to $191 million16, and in the second quarter Sports fell 5% to $652 million17. Experiences grew in all three quarters, earning $3,309 million, $2,615 million and $3,017 million181920.

The balance sheet moved with the buybacks. Treasury stock rose to 148 million shares at 27 June 2026 from 79 million at the end of fiscal 202521, and borrowings rose to $46,041 million22. Disney spent more than it earned in the quarter to reduce its share count.

The next quarter tests Sports. Should full-year Sports operating income, excluding the 53rd week, miss the mid-single-digit growth Disney still guides to23, the ESPN squeeze will have outlasted every temporary explanation.

References
  1. ReportedRevenue rose 7% to $25,248 million and total segment operating income 21% to $5,555 million.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Entertainment results by revenue type, the shareholder letter and segment totals. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  2. ReportedAdjusted EPS rose 28% to $2.06, while reported diluted EPS fell 48% to $1.51, because the year-earlier quarter included a $3,277 million Hulu tax benefit.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - income statement, adjusted EPS, cash flow and balance sheet. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  3. ReportedAdjusted EPS rose 28% to $2.06, while reported diluted EPS fell 48% to $1.51, because the year-earlier quarter included a $3,277 million Hulu tax benefit.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - income statement, adjusted EPS, cash flow and balance sheet. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  4. ReportedIts revenue rose 10% to $9,968 million and its operating income 20% to $3,017 million, with roughly four points from a $100 million tariff refund.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Experiences results, global guests, domestic attendance and per-capita spending, the parks outside the United States. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  5. ReportedDomestic parks earned $2,088 million, up 27%, while international parks earned $369 million, down 13%.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Experiences results, global guests, domestic attendance and per-capita spending, the parks outside the United States. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  6. ReportedThe two new cruise ships raised stateroom capacity about 50%.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Disney Cruise Line capacity, resorts and vacations, and Experiences depreciation. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  7. ReportedEntertainment's operating income rose 64% to $1,680 million.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Entertainment results by revenue type, the shareholder letter and segment totals. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  8. ReportedSVOD earned $712 million against $329 million a year earlier.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - the supplemental SVOD detail, Disney+ and Hulu, churn and the membership plan. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  9. ReportedToy Story 5 passed $1 billion at the global box office, but The Mandalorian and Grogu and live-action Moana "underperformed our box office expectations".
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Consumer Products, merchandise licensing and the film slate. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  10. ReportedRevenue rose 4% to $4,500 million but operating income fell 17% to $858 million, on higher rights costs, NBA playoff sweeps and a carriage dispute.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Sports results, ESPN viewership, the NFL Transaction and programming costs. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  11. ReportedBelow the segments, Disney impaired its A+E stake by $812 million after agreeing to sell it to Hearst for about $1.2 billion.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - capital allocation, the A+E sale, cost actions, the Consumer Products move and the fiscal 2026 outlook. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  12. ReportedIt bought back 17 million shares for $1.7 billion in the quarter, raised its fiscal 2026 buyback target to at least $9 billion, and said it would move much of Consumer Products into Entertainment from fiscal 2027.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - capital allocation, the A+E sale, cost actions, the Consumer Products move and the fiscal 2026 outlook. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  13. ReportedIt bought back 17 million shares for $1.7 billion in the quarter, raised its fiscal 2026 buyback target to at least $9 billion, and said it would move much of Consumer Products into Entertainment from fiscal 2027.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - capital allocation, the A+E sale, cost actions, the Consumer Products move and the fiscal 2026 outlook. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  14. ReportedIt bought back 17 million shares for $1.7 billion in the quarter, raised its fiscal 2026 buyback target to at least $9 billion, and said it would move much of Consumer Products into Entertainment from fiscal 2027.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - capital allocation, the A+E sale, cost actions, the Consumer Products move and the fiscal 2026 outlook. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  15. ReportedIt guided fourth-quarter segment operating income to $4.9 billion, about $600 million of it from the 53rd week.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - capital allocation, the A+E sale, cost actions, the Consumer Products move and the fiscal 2026 outlook. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  16. ReportedIn the first quarter Entertainment's operating income fell 35% to $1,100 million and Sports' 23% to $191 million, and in the second quarter Sports fell 5% to $652 million.
    The Walt Disney Company first-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - segment results for the quarter to 27 December 2025 and the approximately $110 million effect of the temporary suspension of YouTube TV carriage. — Q1 FY2026 · publ. February 2026 · source ↗
  17. ReportedIn the first quarter Entertainment's operating income fell 35% to $1,100 million and Sports' 23% to $191 million, and in the second quarter Sports fell 5% to $652 million.
    The Walt Disney Company second-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - segment results and Experiences supplemental detail for the quarter to 28 March 2026. — Q2 FY2026 · publ. May 2026 · source ↗
  18. ReportedExperiences grew in all three quarters, earning $3,309 million, $2,615 million and $3,017 million.
    The Walt Disney Company first-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - segment results for the quarter to 27 December 2025 and the approximately $110 million effect of the temporary suspension of YouTube TV carriage. — Q1 FY2026 · publ. February 2026 · source ↗
  19. ReportedExperiences grew in all three quarters, earning $3,309 million, $2,615 million and $3,017 million.
    The Walt Disney Company second-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - segment results and Experiences supplemental detail for the quarter to 28 March 2026. — Q2 FY2026 · publ. May 2026 · source ↗
  20. ReportedExperiences grew in all three quarters, earning $3,309 million, $2,615 million and $3,017 million.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Experiences results, global guests, domestic attendance and per-capita spending, the parks outside the United States. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  21. ReportedTreasury stock rose to 148 million shares at 27 June 2026 from 79 million at the end of fiscal 2025, and borrowings rose to $46,041 million.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - capital allocation, the A+E sale, cost actions, the Consumer Products move and the fiscal 2026 outlook. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  22. ReportedTreasury stock rose to 148 million shares at 27 June 2026 from 79 million at the end of fiscal 2025, and borrowings rose to $46,041 million.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - capital allocation, the A+E sale, cost actions, the Consumer Products move and the fiscal 2026 outlook. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  23. ReportedShould full-year Sports operating income, excluding the 53rd week, miss the mid-single-digit growth Disney still guides to, the ESPN squeeze will have outlasted every temporary explanation.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Sports results, ESPN viewership, the NFL Transaction and programming costs. — Q3 FY2026 · publ. 5 August 2026 · source ↗
Sources
Generated October 5, 2026