Walt Disney Co. (DIS), the entertainment and theme-park company, reported a 21% increase in segment operating income as stronger Experiences and streaming results lifted quarterly profit. Total segment operating income reached $5.56 billion, accelerating from 4% growth in the prior quarter and reversing declines in the two quarters before that.

Adjusted earnings rose 28% to $2.06 a share, up from 8% growth in the prior quarter. GAAP diluted earnings fell 48% to $1.51 a share, while pretax income increased 14% to $3.65 billion.

Revenue was essentially unchanged sequentially at $25.25 billion. Its 7% year-over-year increase matched the prior quarter's pace, following growth of 5% in the fiscal first quarter and roughly flat revenue in the final quarter of fiscal 2024.

Experiences became Disney's fastest-growing major revenue segment, with revenue rising 10% to $9.97 billion and operating income increasing 20% to $3.02 billion. Global guest volume increased 4%, domestic attendance rose 3%, and domestic-park spending per visitor gained 4%. Two new cruise ships expanded stateroom capacity by about 50%, helping resorts-and-vacations revenue rise 17%. A roughly $100 million tariff refund contributed about four percentage points to the segment's operating-income growth, and additional refunds should be insignificant.

Entertainment revenue growth slowed to 6%, while operating income rose 64% to $1.68 billion as costs remained roughly flat and subscription and affiliate fees increased 12%. Streaming operating income more than doubled to $712 million, and its margin widened to 13%, partly reflecting the timing of marketing and programming spending. Advertising revenue declined 1%, and content-sales revenue fell 6%.

Sports revenue rose 4%, though operating income declined 17% to $858 million as costs increased 12%. Programming and production expenses climbed 10% because of contractual rate increases, new rights, and the timing of costs under the NBA renewal. Four-game sweeps in the early NBA playoff rounds and a carriage dispute pushed the decline beyond the forecast of about 14%.

Disney continues to expect fiscal 2026 adjusted-EPS growth of about 12% excluding the 53rd week and about 16% including it. Fourth-quarter segment operating income is expected to be about $4.9 billion, including an estimated $600 million contribution from the extra week. Experiences profit growth is now expected at the high end of the previous high-single-digit range, while Disney maintained its forecast for double-digit Entertainment profit growth and warned that weaker advertising and the below-plan box office for live-action *Moana* would weigh on the fourth quarter.

Disney raised its annual share-repurchase target for a second consecutive quarter to at least $9 billion. The company agreed to sell its 50% stake in A+E Global Media to Hearst for about $1.2 billion in cash and planned to use the proceeds for additional repurchases. Disney is also evaluating further labor and administrative cost reductions, without quantifying potential savings.