Disney shares climbed on Wednesday after Toy Story 5 did well at the box office and more people visited its theme parks, helping the company beat third-quarter earnings forecasts.
The stock rose 4.7% before the market opened, doing better than the broader index futures.
Disney reported adjusted earnings of $2.06 per share, beating the $1.86 analysts expected, according to FactSet. Revenue grew 7% from last year to $25.2 billion, slightly under the $25.4 billion estimate.
Disney’s experiences division, which includes theme parks and cruises, saw operating income rise 20% from last year to $3.02 billion. This helped ease worries that the conflict in Iran could hurt travel demand. The entertainment segment improved even more, with operating income up 64% to $1.68 billion, thanks to strong box-office results from Toy Story 5 and The Devil Wears Prada 2. Disney also confirmed its forecast for fiscal 2026, expecting adjusted earnings per share to grow about 16%, which includes an extra week in this year’s calendar.
These results gave the stock a boost after it had fallen 14% this year, following challenges like cord-cutting and changes in leadership. The new CEO, Josh D’Amaro, has promised to improve the business by investing more in intellectual property, using new technologies like AI, and reaching more consumers.
