Toy Story 5 and Parks Spark Disney’s Q3 Lift, with Big Changes Ahead

Disney’s fiscal third quarter was powered by Toy Story 5 and strong theme-park performance, delivering $25.2 billion in revenue (up 7%) and $5.5 billion in operating income (up 21%), with streaming turning more clearly profitable. While some franchises underperformed at the box office, Disney outlined a broad strategic shift—moving consumer products into the entertainment division, turning Disney+ into a comprehensive membership ecosystem, and using AI to boost creativity and efficiency—funded in part by stock buybacks from the $1.2 billion sale of its A+E stake. Parks remained a bright spot domestically despite softer international attendance, and the company signaled significant changes ahead across its divisions.