DIS · 8-K · 20260805PR000056
Segment Profitability
Walt Disney Co · 2026-08-05 · Importance 59 · Surprise 48 · From source text
Total segment operating income increased 21% to $5.555 billion from $4.575 billion in the third quarter. Entertainment operating income increased 64% to $1.680 billion, driven primarily by higher subscription and affiliate fees and an $187 million reduction in selling, general, administrative and other costs. Experiences operating income increased 20% to $3.017 billion, supported by higher Parks & Experiences and Consumer Products revenue, with a $100 million tariff refund contributing approximately four percentage points of growth. Sports operating income declined 17% to $858 million because higher programming and production costs, a network carriage dispute, and four-game NBA playoff sweeps more than offset subscription and affiliate fee growth.
Key facts
- Net income attributable to The Walt Disney Company for the quarter was $2,638 million versus $5,262 million in the prior-year quarter. source
- Entertainment segment operating income in Q3 was $1,680 million, up 64% from $1,022 million in prior-year quarter. source
- Entertainment segment operating income for the quarter ended June 27, 2026: $1,680 million, and for June 28, 2025: $1,022 million (64% change). source
- Total segment operating income increased 21% to $5.6 billion from $4.6 billion in Q3 fiscal 2025. source
- Other Entertainment businesses operating income for the quarter ended June 27, 2026: $968 million, and for June 28, 2025: $693 million (40% change). source
- Entertainment segment programming and production costs were $5,819 million in the quarter, an increase of 1% versus prior-year quarter. source
- Diluted earnings per share (EPS) decreased to $1.51 from $2.92 in Q3 fiscal 2025. source
- Income before income taxes in fiscal Q3 increased 14% to $3.6 billion from $3.2 billion in Q3 fiscal 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -10.4% | Net income attributable to The Walt Disney Company for the quarter was $2,638 million versus $5,262 million in the prior-year quarter. |
| operating_income | positive | realized | +4.0% | Total segment operating income increased 21% to $5.6 billion from $4.6 billion in Q3 fiscal 2025. |
| operating_income | positive | realized | +2.6% | Entertainment segment operating income in Q3 was $1,680 million, up 64% from $1,022 million in prior-year quarter. |
| operating_income | positive | realized | +1.1% | Other Entertainment businesses operating income for the quarter ended June 27, 2026: $968 million, and for June 28, 2025: $693 million… |
| operating_income | negative | realized | -0.2% | Entertainment segment programming and production costs were $5,819 million in the quarter, an increase of 1% versus prior-year quarter. |