Toy Story 5 helps boost Disney Q3 revenues by 7%
August 5, 2026
The Walt Disney Company has posted what it described as “strong fiscal Q3 results” and reiterated its full-year outlook.
Revenues increased 7 per cent for the third quarter to $25.2 billion (€21.8bn) from $23.7 billion in Q3 fiscal 2025. Income before income taxes increased 14 per cent to $3.6 billion from $3.2 billion in Q3 fiscal 2025. Total segment operating income exceeded prior guidance. Total segment operating income increased 21 per cent to $5.6 billion from $4.6 billion in Q3 fiscal 2025.
Entertainment SVoD saw revenue growth of 11 per cent attributed to subscription revenue growth of 15 per cent relative to the prior-year quarter, entertainment SVoD advertising revenues were up 3 per cent, and entertainment SVoD operating margin was 13 per cent in fiscal Q3, benefiting, in part, from the timing of marketing and programming spend.
In a letter the shareholders, the media giant said: “Decades of IP investment have built deep fan connections that translate into strong financial results. Our accelerating global guests growth at Experiences, Toy Story 5‘s theatrical and consumer products success, and strong ESPN viewership gains all helped expand our consumer reach this quarter. Together, our results show a unique ability to engage consumers at scale, both digitally and physically, even amid macro uncertainty.”
Disney also highlighted a “solid quarter creatively”, led by the June 19th theatrical release of the aforementioned Toy Story 5 which has already surpassed $1 billion in global box office, bringing the franchise’s lifetime global box office to more than $4 billion. This film’s value also extends well beyond the theatrical window. Its release further lifted the franchise on Disney+, which has over 2 billion hours streamed, while Toy Story merchandise helped deliver Disney’s strongest quarter of year-over-year growth in Consumer Products revenue in 20 quarters.
Beyond Toy Story 5, Disney said it was also “pleased by the performance” of The Devil Wears Prada 2, especially internationally. While audience scores for both Star Wars: The Mandalorian and Grogu and fiscal Q4’s live action Moana have been strong, both films underperformed box office expectations, the company admitted.
Even so, these franchise investments contributed to value creation beyond their theatrical releases, explained Disney, noting: “We executed our first-ever day-and-date attraction update with a new Mandalorian-themed Millennium Falcon: Smuggler’s Run at Star Wars: Galaxy’s Edge at Disneyland and Walt Disney World. Additionally, the film drove healthy growth in retail sales for the Star Wars franchise during the quarter. Looking ahead, we expect the live-action Moana to be a strong title on Disney+, building on the success of the original film, which is one of the most streamed movies of all time, and extending the reach of the franchise, which now includes three films, a themed area at EPCOT, and a robust global merchandise business”.
On the direct-to-consumer front, early success in an emerging international programming slate pushed Disney to further ramp investment. Rivals season 2 became the biggest EMEA region original premiere in the UK and Ireland on Disney+; The Perfect Crown became the most-watched Korean premiere on Disney+ globally to date; and Dear Killer Nannies is the #1 most viewed LatAm original premiere globally over the past year on Disney+.
Across the next three years Disney plan to roughly triple the number of local original series on Disney+ to drive new international users to the platform and reduce churn. Meanwhile, the company said it will continue to bolster ESPN’s place as “the front door for sports fans”.
After unlocking a selection of ESPN content on Disney+ domestically in 2024 and expanding it globally since then, Disney plans to deliver a more “robust subset of games” for Disney+ subscribers beginning this autumn, anchored by additional college football simulcasts, alongside the continued simulcast of college football pregame show, College GameDay. The strategy is to bring more live sports to more users and drive greater engagement on Disney+ and greater upsell to its trio bundle, which includes ESPN Unlimited.
Disney noted it is also continually looking for new ways to expand its content offering beyond traditional premium film and TV to drive engagement and fandom, including its new agreement with TikTok which can be read about here.
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