DIS
The House of Mouse still has a few tricks up its sleeve
Disney came out swinging in fiscal Q3 2026. Adjusted earnings landed at $2.06 per share, ahead of Wall Street’s $1.86 estimate, and the stock popped in premarket trading because apparently investors do like it when the magic kingdom makes money.
Revenue wasn’t quite as shiny — $25.25 billion versus expectations of $25.40 billion — but the real story was the mix. Streaming kept growing, parks stayed packed, and ESPN had a decent quarter in the middle of all the usual sports-TV chaos.
Streaming, parks, and a little bit of pixie dust
The entertainment segment grew 6% to $11.35 billion, helped by direct-to-consumer revenue jumping 11% to $5.53 billion. That came from more subscribers, higher prices, and better ad sales, which is Wall Street-speak for: people are still paying, and Disney is finding more ways to squeeze value out of them.
Meanwhile, the experiences business — parks, resorts, and consumer products — posted revenue of $9.97 billion, up 10%. U.S. park attendance rose 3%, guest spending climbed 4%, and Disney said Orlando looked especially strong. Translation: people are still willing to spend real money to stand in line for the privilege of being slightly more cheerful than usual.
Cash flow, buybacks, and the “we’re feeling good” signal
Operating cash flow climbed 33% to $4.87 billion, free cash flow came in at $3.07 billion, and Disney raised its fiscal 2026 share repurchase target to at least $9 billion from $8 billion. That’s not just a flex — it’s a message that management thinks the cash engine is healthy enough to send some of it back to shareholders.
Disney also reiterated its fiscal 2026 adjusted EPS growth outlook of about 12% before the 53rd week, or about 16% including it, which works out to roughly $6.64. That’s still below the analyst consensus of $6.81, so the company isn’t exactly promising fireworks — but it is telling investors the trend line is headed the right way.
Big picture
Disney is trying to prove it can be more than a nostalgia machine. Between streaming, sports, parks, and now a global TikTok partnership, it’s basically saying: we’ll meet you wherever you scroll, watch, or vacation. If the company can keep the parks humming and streaming growing, the stock’s recent bounce may not just be a one-day theme-park ride.