Disney Q3 Revenue Reaches $25.2B, Adjusted EPS Climbs 28%, Buyback Target Lifted to $9B
DIS is trading near its 52-week low of $92.185 (12% above the low).
Summary
Disney reported Q3 FY2026 revenue of $25.2B (+7% YoY) and adjusted EPS of $2.06 (+28%), raised its FY2026 buyback target to at least $9B, and announced the sale of its A+E stake for $1.2B.
Key Events · Earnings and Guidance · DIS
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Q3 Revenue and Adjusted EPS Beat
Revenue rose 7% to $25.2B, while adjusted EPS of $2.06 exceeded last year's $1.61 by 28%, driven by a 20% increase in Experiences operating income and a 64% surge in Entertainment.
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GAAP EPS Drops on Tax Comparison and Impairment
Diluted EPS fell 48% to $1.51, as a prior-year $3.3B tax benefit and an $812M impairment of the A+E investment masked underlying operational strength.
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FY2026 Guidance Reiterated, Buyback Target Raised
Management reaffirmed ~12% adjusted EPS growth (excl. 53rd week) and increased the share repurchase target to at least $9B, up from prior plans, signaling strong cash flow confidence.
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A+E Stake Sale to Fund Buybacks
Disney agreed to sell its 50% interest in A+E Global Media to Hearst for ~$1.2B cash, with proceeds earmarked for additional share repurchases.
Analysis · DIS · Trade & Services
A strong quarter saw revenue rise 7% and segment operating income jump 21%, fueled by Experiences and Entertainment. Adjusted EPS surged 28% to $2.06, well above last year's $1.61, while GAAP EPS fell sharply on a tough comparison with a prior-year tax benefit and an $812M A+E impairment. Management reiterated full-year adjusted EPS growth guidance of ~12% (excl. 53rd week) and raised the share repurchase target to at least $9 billion, signaling confidence in cash generation. The planned sale of the A+E stake for $1.2 billion will further fund buybacks. Strategic moves—shifting Consumer Products to Entertainment, a TikTok content deal, and cost-cutting plans—add operational catalysts. The stock is likely to react positively to the earnings beat and capital return boost, though the GAAP EPS decline and soft Asia parks outlook temper enthusiasm.
At the time of this filing, DIS was trading at $103.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $170.5B. The 52-week trading range was $92.19 to $119.78. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.