Disney sells out Super Bowl ad inventory, teases free streamer in Q3 earnings call

Disney said it agreed to sell its 50% stake in A+E Global Media for $1.2 billion in cash to Hearst, with full ownership transferring when the deal closes next month. A+E said its channels reach 414 million households across 200 territories. Disney also cited share buybacks rising to at least $9 billion from $8 billion.

Disney reported fiscal Q3 2026 results that beat Wall Street expectations, helped by theme parks and streaming. Adjusted EPS was $2.06 vs $1.61 a year ago, above the $1.86 estimate. Revenue rose 7% to $25.25B, slightly below $25.4B. Experiences revenue rose 10% to $9.97B; streaming revenue rose 11% to $5.53B. Disney raised its fiscal 2026 buyback target to at least $9B.

The S&P 500 hit a record intraday high as corporate results beat expectations and hopes for progress on reopening the Strait of Hormuz supported sentiment. Disney shares rose over 2% after fiscal Q3 results topped estimates, and Eli Lilly gained about 7% after Q2 profit and sales beat forecasts. SpaceX shares fell after its post-IPO quarterly report; AMD and Nvidia moved on earnings and chip-use comments.

The UK Competition and Markets Authority approved Paramount Skydance’s acquisition of Warner Bros. Discovery in a $110 billion deal, saying it will not significantly harm competition in the UK. The CMA cited commitments to maintain programming and news supply, and found strong competition in film distribution and streaming, with limited impact on children’s TV. European and DOJ approvals came earlier, while the US deal is paused by legal action.

Disney management said Experiences operating income growth for fiscal 2026 is expected at the high end of its prior high-single-digit range, excluding a 53rd week. CFO Hugh Johnston cited tariff refunds of about $100 million benefiting operating income, and weaker consumer conditions in Shanghai and Hong Kong. Disney reaffirmed double-digit adjusted EPS growth for 2026-27, with $9B capex and $24B content spending.

Walt Disney (DIS) reported fiscal Q3 revenue of $25.2B, up 7% year over year, and adjusted net income of $3.8B, up 23% to $2.06 per share, slightly missing consensus revenue of $25.4B but beating adjusted EPS expectations of $1.86. Management reaffirmed 2026 adjusted EPS growth of 12% to 16% and targeted double-digit profitability improvement for 2027, while raising its buyback target to $9B.