Walt Disney Co. (NYSE:DIS) advanced nearly 5% in pre-market trading on Wednesday after reporting third-quarter adjusted earnings that comfortably exceeded analysts’ expectations, even though quarterly revenue came in slightly below forecasts.
Investors welcomed the stronger profitability and the company’s decision to increase its share repurchase programme
Profit outperforms Wall Street forecasts Disney reported adjusted earnings per share of $2.06 for the third quarter, beating the consensus estimate of $1.86 by $0.20. Revenue increased 7% year over year to $25.25 billion from $23.7 billion, although it narrowly missed analysts’ expectations of $25.43 billion. Total segment operating income climbed 21% to $5.6 billion, compared with $4.6 billion in the same quarter last year.
Higher buyback target supports investor sentiment The entertainment group also announced a larger share repurchase programme, raising its fiscal 2026 buyback target to at least $9 billion. The increase will be partly financed through approximately $1.2 billion generated from the sale of Disney’s 50% interest in A+E Global Media to Hearst Corporation. “Our strong fiscal third-quarter results and reiterated full-year outlook reinforce our confidence that we are uniquely well positioned,” said CEO Josh D’Amaro and CFO Hugh Johnston in a shareholder letter. Parks and entertainment drive operating growth Disney’s Experiences division delivered one of the strongest performances during the quarter, with operating income rising 20% to $3.0 billion.