Disney Q3 FY26 Earnings: Commentary from CEO Josh D’Amaro

The Walt Disney Company reported its third-quarter earnings on Wednesday (available here), with CEO Josh D’Amaro addressing investors on the results and his first five months in the role.

“During my first five months as CEO, I’ve been focused on ensuring that we execute as one company around a unified strategy,” D’Amaro said on the earnings call. “And what we’re seeing this quarter is proof that coordinating our franchises, sharing data and technology, and building seamless fan experiences works.”

He noted that Disney’s “fundamental advantage is the depth of our fan relationships, and that translates directly to durable financial returns.”

D’Amaro mentioned that “we find ourselves in an environment where consumers have more options than ever for their time,” but that the company’s results show that “they keep choosing to spend their time with Disney.”

“This success reflects our continued execution across three strategic priorities: First, investing in creative excellence and world-class IP. Second, leveraging technology to accelerate growth and drive returns. And third, deepening our direct relationships with fans by creating a more connected Disney experience.” he said. “Anchoring these strategic priorities is our One Disney operating model, which will allow us to fully capture the value of our portfolio for both fans and shareholders.”

Highlights of Disney’s Strength from Q3

Before walking investors through the quarter’s performance, D’Amaro paused to highlight a few examples that “demonstrate how the strength of our consumer connections and the power of our IP are expanding our reach and our relevance.”

Among them:

• Growing global guests 4% year-over-year, with particular strength at Walt Disney World, while the company also benefitted from additional capacity at Disney Cruise Line.
• The strength of our franchise IP via the financial and cultural impact of Toy Story 5, which recently surpassed $1 billion at the global box office.
• And the unique passion of sports fandom drove over 100% growth in NBA Finals and NHL postseason viewership across ESPN and ABC versus the prior season*¹, making this the most viewed fiscal Q3 across ESPN, ESPN2, and ESPN on ABC since 2016.

Experiences

Starting with Disney Experiences, D’Amaro said that Disney is “proud of the growth that we’ve had this year, and we’re investing to sustain that growth.”

“The pipeline includes major attractions at every site, including Villains Land in Orlando and the Avengers Campus expansion in Anaheim, amongst others in the U.S., and our previously announced cruise ship expansion,” he said.

Entertainment

“At our studios, the blockbuster success of the latest Toy Story installment shows exactly why Disney is different from the competition, and how our stories translate into recurring earnings power,” D’Amaro said.

He noted that the five Toy Story films have delivered more than $4 billion at the global box office and over 2 billion hours streamed on Disney+. Across all retailers, the franchise generates more than $1 billion in annual global retail sales *² and reaches fans at every Disney park and cruise ship — spanning four immersive lands, 19 attractions, and two hotels.

“Now, that’s the Disney flywheel in action,” he said. “One powerful and enduring story, told across theaters, streaming, retail, and physical experiences. That integration creates a structure no one else has been able to replicate.”

He added that “even when our franchise films don’t meet our box office expectations, as with The Mandalorian and Grogu and the live-action Moana, our investments in these core properties fuel other parts of our company.” The Mandalorian and Grogu, for instance, drove healthy growth in Star Wars retail sales, drew guests to the updated Millennium Falcon attraction at Disneyland and Walt Disney World, and led to significant engagement in gaming.

As for the live-action Moana, D’Amaro said it’s expected to be a strong performer on Disney+, building on the success of the original — one of the most-streamed films of all time.*³

Streaming

D’Amaro said “the appeal of our IP across multiple consumer touchpoints is central to our strategy, and Disney+ is the digital centerpiece for that.”

During the quarter, he noted, “we passed an important milestone in app unification, allowing Hulu standalone and bundle subscribers to link profiles and manage subscriptions on Disney+.”

Still, he acknowledged the company has “work to do scaling Disney+ outside the U.S., and we’re focused on driving growth and returns over the long term in under-monetized markets.”

“Our strategy is clear,” D’Amaro added. “Leverage regional relationships and bring regional content onto Disney+ at scale. And that’s how we will grow internationally.”

He explained that Disney’s long-term streaming strategy rests on two pillars: “make the core streaming experience the best in the marketplace and connect our businesses into a single digital ecosystem.”

“Beyond our films and series, Disney+ will continue to evolve, bringing together games, merchandise, and other experiences, while offering increased personalization, exclusivity, and benefits for subscribers,” he said. “All of this is designed to deepen engagement, improve the value proposition, lower churn, and – most importantly – increase lifetime fan value. We expect to introduce elements of this expanded ecosystem beginning in Spring of 2027.”

D’Amaro concluded by saying that “Disney+ provides the global reach to develop new fans and the consumer data to drive personalization, which are both core to our long-term strategy.”

Sports

That same strategy extends to sports, where, according to D’Amaro, “ESPN gives us another powerful way to deepen our relationship with fans.”

As Disney+ evolves, he added, “we’ll continue to bring select premium sports events to the platform.”

“At the same time, ESPN remains the primary destination for daily sports content,” he said. “Live sports aren’t just a viewership play; they’re a fan engagement and ecosystem play. When a sports fan engages with ESPN, Disney+, or our parks, their lifetime value increases.”

AI and Emerging Technology

Before wrapping the call, D’Amaro turned to the emerging technology underpinning all of this work.

“Our company was founded on the convergence of creativity and breakthrough technology – and continuing that tradition is a priority for me and this leadership team,” he said. “That’s why we’re leveraging AI to bring the most innovative tools to our storytellers. As I’ve said before, AI isn’t simply about efficiency – it’s about enhancing a creative process that will always be human-centered, artist-driven, and creator-led.”

He continued, “AI lets us work faster and smarter, particularly in areas of pre- and post-production. Our teams can personalize content and experiences for fans around the world at scale. And we are doing all of this while keeping human creativity at the center. AI amplifies what our storytellers can do – it doesn’t replace them.”

“This efficiency, it matters financially, too,” he said. “When our teams work smarter, we can serve more people across our parks and digital platforms and do it more cost-effectively. That frees up capital to reinvest aggressively in what drives long-term value: new content and next-generation guest experiences, as well as technology infrastructure that keeps Disney at the forefront of entertainment.”

Final Thoughts

Wrapping up his commentary, D’Amaro said that “there is clarity of purpose inside this company right now.”

“We know what Disney is: a storyteller with an unmatched ability to reach fans across every format and every geography. We know how technology amplifies that power. And we know that when we operate in an integrated fashion with speed, discipline, and efficiency, we can create long-term shareholder value,” he said concluding the call.