Disney's first full quarter under CEO Josh D'Amaro delivered strong results across nearly every division. Total operating income rose 21% to $5.6 billion for the three months ended in June, beating Wall Street forecasts. Adjusted earnings per share came in at $2.06, up from $1.61 a year earlier. Revenue of $25.2 billion rose 7% year over year, according to Deadline.
Toy Story 5 led the way for Disney's Entertainment division, which posted a profit of $1.7 billion, up 64%, on revenue of $11.3 billion. The film, released theatrically on June 19, has surpassed $1 billion in global box office. The Devil Wears Prada 2 was also cited as a contributor to the division's performance.
Not every film performed as expected. Disney acknowledged that Star Wars: The Mandalorian and Grogu and the live-action Moana both underperformed at the box office. The company pointed to their other contributions, including a new Mandalorian-themed Millennium Falcon: Smuggler's Run attraction at Disneyland and Walt Disney World, and retail merchandise sales. On Moana, Disney said it "expect[s] the live-action Moana to be a strong title on Disney+, building on the success of the original film."
Streaming showed significant gains. Disney no longer reports subscriber counts, but said streaming operating income more than doubled to $712 million from $329 million in the year-earlier quarter. Revenue from the streaming division hit $5.5 billion, up 11%. Subscription fees rose 15%, driven by a combination of more subscribers, higher rates, and favorable foreign exchange.
Theme parks also contributed. Experiences saw an uptick in attendance, with D'Amaro citing accelerating global guest growth as part of the company's broader momentum.
D'Amaro, who took over from Bob Iger in March, framed the results as a reflection of the company's long-term investment strategy. "Decades of IP investment have built deep fan connections that translate into strong financial results," he said. "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."
Disney also announced a global short-form content sharing partnership with TikTok and confirmed the planned sale of its 50% interest in A+E Global Media to Hearst for $1.2 billion in cash. The company also said it plans to triple the number of Disney+ local original series over the next three years, pointing to international productions including Rivals Season 2 in the U.K. and Ireland and Dear Killer Nannies in Latin America.
Disney's full-year outlook, D'Amaro said, reinforces the company's confidence that it is "uniquely well positioned."
