Disney boosts dividend and buyback as parks and streaming power profit beat
Walt Disney Co. announced on Thursday that it will raise its dividend by 50% and double its share buyback plan for fiscal 2026, following stronger-than-expected quarterly earnings driven by growth in its theme parks and streaming divisions.
Despite the upbeat results, Disney shares slipped nearly 3% in premarket trading, as total revenue fell short of market forecasts amid persistent weakness in traditional TV, News.Az reports, citing Reuters.
Disney reported adjusted earnings per share of $1.11 for the quarter ending in September — a 3% drop from last year but 6 cents above analyst estimates, according to LSEG data.
Disney’s streaming business saw profits jump 39% to $352 million, with Disney+ and Hulu adding 12.5 million subscribers during the quarter, bringing the total to 196 million.
Chief Financial Officer Hugh Johnston credited a new distribution deal with Charter Communications for helping attract new customers. He also noted that “Lilo & Stitch”, which debuted on Disney+ this quarter, drew 14.3 million views in its first five days.
The company’s theme parks unit reported higher profits, supported by growth at Disneyland Paris and the expansion of its U.S. cruise ship business. Operating income from the experiences division climbed 13% year-over-year to $1.88 billion.
Meanwhile, Disney’s traditional TV and ESPN units continued to drag on performance.
Television profit fell 21% to $391 million as cable fees and ad revenues declined.
Entertainment division operating income dropped more than one-third to $691 million, with this year’s films unable to replicate the blockbuster success of Inside Out 2 and Deadpool & Wolverine.
CEO Bob Iger, who returned to lead the company in 2022, said Disney is focused on long-term growth and cost discipline. His contract runs until the end of 2026, and the company plans to announce his successor early next year.
Disney reaffirmed expectations of double-digit adjusted EPS growth for both fiscal 2026 and 2027.
The board approved a dividend of $1.50 per share, up from $1, and doubled its stock buyback program to $7 billion for fiscal 2026.
“This was another year of great progress as we strengthened the company by leveraging the value of our creative and brand assets and continued to make meaningful progress in our direct-to-consumer businesses,” Iger said.
Disney’s total quarterly revenue came in at $22.5 billion, nearly flat from last year and just below the $22.75 billion analysts expected.
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