Financial documents have been
released.
Here's a brief look:
To Our Shareholders and the Broader Investment Community,
Our strong fiscal Q3 results and reiterated full-year outlook reinforce our confidence that we are
uniquely well positioned. Decades of IP investment have built deep fan connections that translate into
strong financial results. Our accelerating global guests growth at Experiences, Toy Story 5's theatrical
and consumer products success, and strong ESPN viewership gains all helped expand our consumer
reach this quarter. Together, our results show a unique ability to engage consumers at scale, both
digitally and physically, even amid macro uncertainty.
Revenues increased 7% for the third quarter to $25.2 billion from $23.7 billion in Q3 fiscal 2025. Income
before income taxes increased 14% to $3.6 billion from $3.2 billion in Q3 fiscal 2025. Total segment
operating income(1) modestly exceeded our prior guidance. Total segment operating income increased
21% to $5.6 billion from $4.6 billion in Q3 fiscal 2025. Diluted earnings per share (EPS) decreased to
$1.51 from $2.92 in Q3 fiscal 2025. Adjusted EPS(1) increased to $2.06 from $1.61 in Q3 fiscal 2025.
Fiscal 2026 outlook:
- We continue to expect fiscal 2026 adjusted EPS growth of approximately 12%, excluding the impact of the 53rd week.
- We continue to expect fiscal 2026 adjusted EPS growth of approximately 16%, including the impact of the 53rd week.
- We expect Q4 total segment operating income of approximately $4.9 billion, including the impact of the 53rd week.
- We are now targeting at least $9 billion in share repurchases in fiscal 2026.
Fiscal 2027 outlook:
- We continue to expect double-digit growth in adjusted EPS in fiscal 2027, excluding the impact of the 53 week. Note that in Q4 fiscal 2027 we will lap the impact of the 53 week in Q4 fiscal 2026.
Revenues -
Theme park admissions
- Theme park admissions revenue growth was due to increases of 5% from higher average per capita ticket revenue and 3% from increased attendance.
Revenues - Resorts and vacations
- Higher resorts and vacations revenue was attributable to increases of 10% from additional passenger cruise days, 2% from an increase in average daily hotel room rates and 2% from higher occupied hotel room nights. The increase in passenger cruise days reflected the launches of the Disney Destiny in November 2025 and the Disney Adventure in March 2026.
Revenues - Parks & Experiences merchandise, food and beverage
- Parks & Experiences merchandise, food and beverage revenue growth was due to increases of 4% from volume growth and 3% from higher average guest spending.
Revenues - Merchandise licensing and retail
- Higher merchandise licensing and retail revenue was due to an increase of 10% from merchandise licensing, partially offset by a decrease of 2% from an unfavorable foreign exchange impact.
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