Disney Beats Q3 Earnings Expectations as Streaming Turns Profitable; Stock Rises 3.89% on August 5

DIS0.72%
Walt Disney reported on Wednesday (August 5) that its fiscal third quarter (ended June 27) adjusted earnings per share hit $2.06, beating Wall Street expectations of $1.86. Revenue reached $25.2 billion, slightly below forecasts but operating income of $5.56 billion exceeded estimates of $5.24 billion. Disney's entertainment segment operating income surged 64% to $1.7 billion, driven by strong box office performance from Toy Story 5 and The Devil Wears Prada 2, as well as Disney+ and Hulu subscription revenue growth of 15%. Streaming business operating margins reached double digits for the first time, signaling improved profitability. The company's theme parks and experiences segment revenue grew 10% year-over-year with 20% operating income growth to $3.02 billion, supported by steady attendance and consumer spending at domestic parks, particularly Walt Disney World in Orlando.
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