'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 still moneymakers for Walt Disney Co., arsenic “Toy Story 5” summons income and merchandise helped powerfulness nan company’s fiscal 3rd 4th earnings.

The Burbank media and intermezo elephantine reported gross of $25.2 cardinal for nan three-month play that ended June 27, up 7% from nan anterior year. Income earlier income taxes totaled $3.6 billion, a 14% summation compared to nan aforesaid clip play successful 2025, while 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.

“Decades of [intellectual property] finance person built heavy instrumentality connections that construe into beardown financial results,” Disney Chief Executive Josh D’Amaro and Chief Financial Officer Hugh Johnston wrote successful a Wednesday missive to shareholders. “Our results show a unsocial expertise to prosecute consumers astatine scale, some digitally and physically, moreover amid macro uncertainty.”

The toys are backmost successful municipality — and making money

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

Entertainment gross was reported astatine $11.3 billion, a 6% jump compared to 2025, while 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 pinch much than $691 cardinal astatine nan worldwide container office, astir $471 cardinal of which came from world 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 trading good earlier nan movie reaches theaters. On Disney+, nan “Toy Story” franchise has now clocked much than 2 cardinal hours of streaming, nan institution said.

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

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

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

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

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

Disney’s experiences section reported $9.97 cardinal successful revenue, an summation of 10% compared to nan 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 nan fiscal year, nan institution said.

High ratings for sports

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

Disney’s sports division, which includes ESPN, reported gross of $4.5 billion, a 4% summation compared to nan erstwhile year. Operating income totaled $858 million, a 17% descent from 2025, driven mostly by higher programming costs tied to nan timing of caller authorities deals. ESPN acquired NFL Network and RedZone from nan convention successful February, and nan channels person been acheronian connected Comcast’s Xfinity systems since April 30, erstwhile nan carriage statement expired and nan 2 sides grounded to scope caller terms.

On nan horizon

As expected, Disney told investors it has agreed to waste its 50% liking successful A+E Global Media for astir $1.2 cardinal successful rate to an connection of existent co-owner Hearst Corp. The institution said it plans to usage nan costs to repurchase further Disney shares, upping its target for fiscal 2026 repurchases to beryllium astatine slightest $9 billion.

D’Amaro and Johnston besides reiterated nan extremity for Disney+ to beryllium nan company’s “digital centerpiece,” though their missive revealed fewer caller specifications different than nan continued integration of Hulu into nan streaming platform, “better leveraging sports successful nan U.S.” and investing successful world programming.

In nan long-term, D’Amaro and Johnston said nan scheme is to “evolve Disney+ into a broad rank ecosystem,” noting that much accusation would beryllium released adjacent spring.