Latest quarter
Disney reported Q3 FY2026 revenue of $25.2 billion, up 6.76% from $23.7 billion a year earlier but below the consensus of $25.5 billion. The company reported adjusted EPS, as the consensus counts it, of $2.06, above the consensus of $1.88, while reported diluted EPS was $1.51, down 48.3% from $2.92 a year earlier.
Disney’s filing attributed the revenue increase to growth in resorts and vacations, theme-park admissions, subscription and affiliate fees, and parks merchandise, food and beverage revenue. The filing said service revenue included an approximate 2 percentage point favorable impact from the Fubo and NFL Transactions. Disney reported a gross margin of 40.2%, compared with 38.6% a year earlier, and an operating margin of 15.3%, compared with 14.6%. The company reported free cash flow of $3.1 billion, compared with $1.9 billion in the prior-year quarter.
Disney’s filing said the decline in net income and diluted EPS reflected a comparison with a prior-year non-cash tax benefit related to Hulu’s U.S. income-tax classification and an impairment of its A+E investment in the current quarter.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $25.2 billion | $23.7 billion | 6.76% |
| Diluted EPS | $1.51 | $2.92 | −48.3% |
| Gross margin | 40.2% | 38.6% | 1.6 percentage points |
| Operating margin | 15.3% | 14.6% | 0.7 percentage points |
| Free cash flow | $3.1 billion | $1.9 billion | 62.6% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $2.06 | $1.88 | Beat by 9.57% |
| Revenue | $25.2 billion | $25.5 billion | Missed by 0.91% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Disney did not hold an earnings call for Q3 FY2026, so management commentary from a latest call, analyst questions and answers, and call quotations are unavailable.
Guidance
Disney said it expects Q4 FY2026 total segment operating income of approximately $4.9 billion, including the 53rd week, which it expects to contribute approximately $600.0 million. The company said it is now targeting at least $9.0 billion in fiscal 2026 share repurchases.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Capex | FY2026 | $9.0 billion | — | New |
| Operating cash flow, GAAP | FY2026 | $19.0 billion | — | New |
| Operating income, Entertainment Excluding 53rd Week | FY2026 | The Walt Disney Company expects double-digit Entertainment segment operating income growth in fiscal 2026, excluding the 53rd week. | — | — |
| Operating income, Sports Excluding 53rd Week | FY2026 | The Walt Disney Company expects mid-single-digit Sports segment operating income growth in fiscal 2026, excluding the 53rd week. | — | — |
| Operating income, Experiences Excluding 53rd Week | FY2026 | The Walt Disney Company expects fiscal 2026 Experiences segment operating income growth at the high end of its prior high-single-digit guidance, excluding the 53rd week. | — | — |
| Operating income, Total Segment Non Gaap 53rd Week | Q4 FY2026 | $600.0 million | — | New |
| Units, Experiences Global Guests Excluding 53rd Week | Q4 FY2026 | The Walt Disney Company expects global guests growth in Q4 fiscal 2026, excluding the 53rd week. | — | — |
| Operating margin, Entertainment Svod Non Gaap Excluding 53rd Week | FY2026 | The Walt Disney Company expects a double-digit Entertainment SVOD operating margin for full-year fiscal 2026, excluding the 53rd week. | — | — |
| EPS, Non Gaap Excluding 53rd Week | FY2027 | The Walt Disney Company expects double-digit adjusted EPS growth in fiscal 2027, excluding the 53rd week. | — | — |
| Share repurchases | FY2026 | $9.0 billion | — | New |
| Operating income, Total Segment Non Gaap Including 53rd Week | Q4 FY2026 | $4.9 billion | — | New |
| EPS growth, Non Gaap Including 53rd Week | FY2026 | $0.16 | — | New |
| EPS growth, Non Gaap Excluding 53rd Week | FY2026 | $0.12 | — | New |