Disney third-quarter revenue jumps 7% to $25.2 billion on parks, streaming turnaround

Disney reported fiscal third-quarter adjusted earnings of $2.06 per share, topping Wall Street expectations, as a streaming turnaround and strong performance at its parks and cruises business pushed segment operating income up 21% to a record $5.56 billion. Revenue rose 7% from a year earlier to $25.25 billion. During the earnings call, Chief Executive Officer Josh D'Amaro said Disney+ is set to evolve beyond a video platform into a broader digital fan hub that brings together games, merchandise and other interactive experiences, with elements of the expanded ecosystem expected to begin rolling out in spring 2027. He said the strategy is aimed at making Disney+ the digital centerpiece of Disney's direct relationship with fans through greater personalization, exclusivity and subscriber benefits. Disney's direct-to-consumer streaming revenue rose 11% to $5.53 billion and the business posted a 13% SVOD operating margin, while the experiences division recorded revenue of $9.97 billion, helped by a 3% increase in U.S. park attendance and a 4% rise in guest spending. Entertainment revenue increased 6% to $11.35 billion, supported in part by the strong theatrical run of "Toy Story 5," which crossed $1 billion at the global box office. Industry skepticism remains around streaming advertising momentum after quarterly ad growth of 2.5%, with Versant Media Senior Advisor Tom Rogers telling CNBC that the figure points to possible engagement or subscriber-growth pressure. Disney shares closed 3.65% higher at $101.76 on Wednesday and were up 0.35% in premarket trading on Thursday.