The Walt Disney Co. reported $25.2 billion in revenue for the quarter ending June 27, driven by a $1 billion global box office haul for Toy Story 5 and stronger-than-expected domestic theme park attendance that helped offset international tourism declines.
Box Office Success and Franchise Strategy Drive Entertainment Revenue
Disney’s entertainment group generated $11.3 billion in revenue during the quarter, a 6 percent increase from the previous year, with segment operating income climbing 64 percent to nearly $1.7 billion. The quarter’s financial engine was anchored by Toy Story 5, which crossed the $1 billion threshold at the global box office.
The film’s commercial impact extended far beyond ticket sales. Executives noted that the blockbuster success fueled merchandise purchases and drove heightened user engagement with earlier entries in the franchise on the Disney+ streaming service. According to corporate filings, merchandising sales tied to the release generated the company’s strongest quarter of year-over-year consumer products revenue growth in 20 quarters.
“Theatrical performance is is important to us, of course, and we certainly aspire to deliver consistent financial results for our films. But the nature of the film industry is such that it is more of a portfolio game. The good news for us is our diversified business helps us basically cover the volatility that comes out of the the film business.”
Hugh Johnston, Chief Financial Officer, The Walt Disney Co.
Not every theatrical release matched that trajectory. The company reported that live-action adaptations including The Mandalorian and Grogu and Moana underperformed at the box office, though executives emphasized that such franchise investments continue to create long-term value through streaming and consumer products.
Theme Parks Outperform Market Expectations Amid Diverging Industry Trends
Disney’s experiences division posted revenue of nearly $10 billion, representing a 10 percent increase compared to the same period a year earlier. Operating income for the segment reached $3 billion, up 20 percent. Domestic parks and cruise operations generated $7.12 billion of that total, an 11 percent revenue increase accompanied by a 27 percent surge in profit to $2.1 billion.
The robust park performance ran counter to broader industry concerns. Earlier in the summer, Comcast reported a 5 percent decline in overall profit for its Universal theme parks, pointing to higher fuel prices and softening consumer sentiment in Orlando. Disney executives, however, reported healthy attendance gains.
Overall attendance across Disney’s global theme parks climbed 4 percent, while domestic parks in Florida and California saw a 3 percent increase driven by domestic tourists and annual passholders. Executives noted that international visitors visiting U.S. parks remained below historical levels, but domestic volume and a 7 percent increase in souvenir and food sales more than compensated for the shortfall.
“Obviously, we’re gaining share.”
Hugh Johnston, Chief Financial Officer, The Walt Disney Co.
Streaming Profitability, A+E Divestment, and Strategic Partnerships
In the streaming sector, SVOD entertainment revenue—comprising Disney+ and Hulu, excluding ESPN—reached $712 million, marking a sharp increase from the previous year. Total entertainment streaming revenue climbed 11 percent to $5.53 billion, aided by subscriber growth, price increases, and higher advertising revenue.
To streamline its corporate structure, Disney announced an agreement to sell its 50 percent stake in A+E Global Media to co-owner Hearst Corp. for $1.2 billion in cash. The company intends to allocate those proceeds toward stock buybacks, raising its fiscal 2026 share repurchases to at least $9 billion.
Concurrently, Disney and TikTok announced a global short-form content sharing agreement allowing TikTok creators to incorporate characters and scenes from Disney films and television programs into short-form videos, with fan-created content flowing back onto the Disney+ application.
Leadership Vision and Artificial Intelligence Integration
In his first full earnings disclosure since succeeding Bob Iger, CEO Josh D’Amaro outlined plans to transform Disney+ into a comprehensive membership ecosystem,
with initial elements scheduled to roll out early next year. The company also announced that its consumer products division will shift out of the experiences segment and into the entertainment division to align intellectual property monetization more closely with studio creators.
The company recorded an approximately $100 million tariff refund during the quarter following a federal court ruling regarding trade levies, though executives noted future adjustments are expected to be minor.
