Disney’s Profits Surge With Parks, Streaming Gains And Major WWE Deal

Disney delivered strong third-quarter results, driven by increased streaming profitability and continued momentum at its domestic theme parks. The company reported a profit of USD 5.26 billion, or USD 2.92 per share, compared to USD 2.62 billion, or USD 1.43 per share, a year ago. Adjusted earnings of USD 1.61 per share beat Wall Street expectations. Revenue came in at USD 23.65 billion, just shy of analysts’ forecasts.

The company also raised its full-year adjusted earnings outlook to USD 5.85 per share, up from USD 5.75.

Streaming Growth and Park Strength Fuel Earnings Beat

Disney’s Experiences division which includes parks, cruises, and merchandise reported a 13 percent increase in operating income, led by a 22 percent jump at U.S. parks. Meanwhile, the direct-to-consumer segment, which includes Disney+ and Hulu, posted USD 346 million in quarterly operating income, reversing a loss from the same quarter last year. Disney+ maintained its domestic subscriber base, with a 2 percent international increase. Total Disney+ and Hulu subscribers reached 183 million, up 2.6 million from Q2.

WWE and NFL Partnerships Signal Aggressive Sports Expansion

A major development this quarter was Disney’s multi-billion dollar partnership with WWE, positioning ESPN as the exclusive U.S. streaming home for WWE’s premium live events starting next year. Events like WrestleMania and SummerSlam will be available on ESPN’s new streaming platform and select cable channels. The deal is reportedly worth over USD 1.6 billion across five years. Additionally, ESPN and the NFL entered into a nonbinding agreement that could see ESPN acquire key NFL media assets, expanding its live sports footprint.

Subscriber Strategy Shifts as Leadership Transition Looms

CEO Bob Iger confirmed the company will stop reporting paid subscriber counts beginning in fiscal 2026 for Disney+ and Hulu. Looking ahead, Disney projects over 10 million new subscriptions in Q4, largely from Hulu growth. Meanwhile, Disney’s board continues the search for Iger’s successor, considering both internal and external candidates, as he remains under contract through 2026. Despite the strong quarter, Disney shares dropped more than 3% in morning trading.

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