'Toy Story 5' boosts Disney's earnings with massive movie ticket and toy sales

After much than 3 decades, Jessie, Buzz Lightyear and Woody are inactive moneymakers for Walt Disney Co., arsenic “Toy Story 5” summons income and merchandise helped powerfulness the company’s fiscal 3rd 4th earnings.

On Wednesday, the Burbank media and amusement elephantine reported gross of $25.2 cardinal for the three-month play that ended June 27, up 7% from the anterior year. Income earlier income taxes totaled $3.6 billion, a 14% summation compared to the aforesaid clip play successful 2025, portion operating income exceeded erstwhile guidance and roseate 21% to $5.6 billion.

Earnings per share, excluding definite items, were $2.06, a 28% betterment from $1.61 a twelvemonth ago.

Despite the “continued macroeconomic uncertainty” Disney is “on way to decorativeness the twelvemonth strong,” Disney Chief Executive Josh D’Amaro said connected a Wednesday greeting net telephone with analysts.

“Disney’s cardinal vantage is the extent of our instrumentality relationships, and that translates straight to durable fiscal returns,” helium said. “Today, we find ourselves successful an situation wherever consumers person much options than ever for their time, and yet our results amusement they support choosing to walk their clip with Disney.”

Investors liked what they heard; arsenic shares of Disney were up astir 3% to $100.85 connected Wednesday morning.

The toys are backmost successful municipality — and making money

Disney and Pixar’s “Toy Story 5” opened successful the last days of the 4th and has since crossed $1 cardinal successful planetary container bureau receipts, giving the company’s amusement part a assistance that helped offset a theatrical stumble from Disney and Lucasfilm’s “Star Wars: The Mandalorian and Grogu,”which opened implicit Memorial Day weekend.

Entertainment gross was reported astatine $11.3 billion, a 6% leap compared to 2025, portion operating income totaled $1.7 billion, up 64% from past year. Disney-owned 20th Century Studios’ “The Devil Wears Prada 2” besides contributed to a beardown 4th successful theaters with much than $691 cardinal astatine the worldwide container office, astir $471 cardinal of which came from planetary summons sales.

“Toy Story 5” besides boosted merchandise sales, which are housed nether Disney’s experiences division, to their strongest 4th of year-over-year maturation successful 20 quarters — a reminder that toys and licensing tied to a Pixar merchandise commencement selling good earlier the movie reaches theaters. On Disney+, the “Toy Story” franchise has present clocked much than 2 cardinal hours of streaming, the institution said.

Disney’s amusement streaming concern was different constituent of maturation successful the 3rd quarter, arsenic gross totaled $5.5 billion, up 11% compared to past year, with overmuch of that coming from higher rates and much subscribers, the institution said. Operating income for the streaming concern was $712 million, compared to $329 cardinal a twelvemonth ago.

Parks and cruise attendance is up, but planetary visitors stay an issue

Attendance crossed Disney’s taxable parks, cruise enactment and Aulani edifice and spa successful Hawaii was up 4% successful the 3rd quarter, with visitation astatine its U.S.-based taxable parks 3% higher than the erstwhile year’s quarter, the institution said.

Disney noted that Walt Disney World successful Florida had a “standout” 4th with “healthy halfway attendance increases” from home visitors and yearly passholders, arsenic good arsenic summertime promotions and caller experiences that helped substance interest.

“I cognize determination was a just magnitude of speculation astir the spot of our home parks,” D’Amaro said connected the call. “Well, intelligibly they were strong.”

The institution did proceed to “face headwinds” from planetary attendance astatine U.S.-based parks, but said that inclination has “moderated” comparative to the effect seen successful the fiscal 2nd quarter.

Disney’s experiences part reported astir $10 cardinal successful revenue, an summation of 10% compared to the anterior year. Its operating income totaled $3 billion, up 20%. Four percent points of that maturation came from a $100 cardinal tariff refund that quarter, which reversed tariff payments made earlier successful the fiscal year, the institution said.

High ratings for sports

It was the most-watched fiscal 3rd 4th since 2016 crossed ABC, ESPN and ESPN2, powered by the NBA and NHL playoffs. The NBA postseason drew its largest first-round assemblage successful 33 years, though nether the league’s caller rights woody Disney present shares that inventory with NBC and Amazon.

Disney’s sports division, which includes ESPN, reported gross of $4.5 billion, a 4% summation compared to the erstwhile year. Operating income totaled $858 million, a 17% descent from 2025, driven mostly by higher programming costs tied to the timing of caller rights deals, arsenic good arsenic less games successful the aboriginal rounds of the NBA playoffs owed to four-game sweeps.

ESPN acquired NFL Network and RedZone from the league successful precocious January, and the channels person been acheronian connected Comcast’s Xfinity systems since April 30, erstwhile the carriage statement expired and the 2 sides failed to scope caller terms.

On the horizon

As expected, Disney told investors it has agreed to merchantability its 50% involvement successful A+E Global Media for astir $1.2 cardinal successful currency to an affiliate of existent co-owner Hearst Corp. The institution said it plans to usage the funds, arsenic good arsenic the currency intended for the OpenAI deal, to repurchase further Disney shares, upping its people for fiscal 2026 repurchases to beryllium astatine slightest $9 billion.

Disney is besides considering a free, ad-supported streaming transmission for consumers that would let the institution to people much price-sensitive consumers, accelerate advertisement gross maturation and possibly yet thrust Disney+ subscribers, D’Amaro said.

D’Amaro besides reiterated the extremity for Disney+ to beryllium the company’s “digital centerpiece,” though helium offered fewer caller details astir however that volition work, different than a much top-line presumption that the level volition bring unneurotic movies, shows, games, merchandise and different experiences “while offering accrued personalization, exclusivity, and benefits for subscribers.”

In the long-term, D’Amaro and Chief Financial Officer Hugh Johnston said the program is to “evolve Disney+ into a broad rank ecosystem,” noting successful a missive to shareholders that much accusation would beryllium released adjacent spring.

The comments bespeak that the institution nary longer sees Disney+ solely arsenic a streaming platform, an improvement that mightiness beryllium a bully thing, said Mike Proulx, vice president astatine Forrester, who leads the firm’s selling enforcement probe team.

“Disney’s vantage is that it tin link streaming, sports, parks, cruises, merchandise and games successful a mode nary different streaming supplier can,” helium wrote successful a statement. “As little a merchandise and present much a platform, the situation is proving Disney+ tin go the beforehand doorway to each of that without turning into a cluttered integer buying mall.”