Disney earnings boosted by Toy Story 5, theme parks and new CEO strikes deal with TikTok

Disney said the blockbuster success of “Toy Story 5” extended beyond the box office for the June quarter, as the hit film fueled sales of merchandise, added to engagement on the Disney+ streaming service, and attracted more visitors to its theme parks.Shares of the company jumped 3% in morning trading on Wednesday.CEO Josh D’Amaro, who took over in March, highlighted his strategy to invest in franchises like Toy Story to reach audiences outside the box office in a lengthy earnings letter to shareholders on Wednesday.Separately, Disney and TikTok announced a deal on Wednesday that will allow TikTok creators to use characters and scenes from Disney movies and TV shows in short-form videos, the first agreement of its kind between the social media platform and a traditional media company.The entertainment giant reported revenue of $25.2 billion in the quarter, up 7% from last year, but shy of Wall Street’s forecasts of $25.4 billion, according to analysts surveyed by LSEG.Disney’s per-share earnings rose 28% from a year ago to an adjusted $2.06, beating forecasts of $1.86 a share.The company said it would sell its 50% stake in A+E Global Media to co-owner Hearst Corp., and use the estimated $1.2 billion in cash proceeds to repurchase Disney shares.This will increase the value of its fiscal 2026 share repurchases to at least $9 billion.Disney’s Parks and experiences division reported revenue of nearly $10 billion, up 10% from a year ago, fueled by a 4% increase in attendance at its theme parks, globally, and a 3% increase at its domestic parks.Analysts had expressed concern about Disney’s US parks, after Comcast attributed softening attendance trends at its Universal theme parks in Orlando to higher fuel prices and weaker consumer sentiment.Operating income for the experiences segment rose to $3 billion, a 20% gain from a year ago, in part reflecting a $100 million tariff refund it received earlier in the quarter.

The Treasury Department has ...