Disney delivered mixed financial results for its June 2026 quarter, with streaming services emerging as a bright spot. The Disney+ and Hulu divisions saw revenue climb 11 percent to $5.53 billion, while operating income in the entertainment streaming segment more than doubled to $712 million from $329 million in the prior year. The company’s theme parks division also performed solidly, contributing to overall revenue of $25.2 billion for the quarter.
CEO Josh D’Amaro announced a significant organizational restructuring in a shareholder letter, revealing plans to relocate most consumer products operations from the Disney Experiences division to the Studios division beginning in the first quarter of fiscal 2027. The shift aims to align merchandise sales more closely with content creation, allowing studios to better monetize their intellectual property. Consumer products generated $1.1 billion in revenue this quarter, marking the strongest year-over-year growth in five years.
D’Amaro also highlighted technological advancements across the company, including expanded use of Disney’s proprietary artificial intelligence tool called J.A.R.V.I.S., which provides Imagineers access to over seven decades of institutional knowledge. The company is deploying AI-powered digital twins to design attractions and enhance guest experiences at its parks worldwide.
Overall, Disney reported net income of $2.63 billion and adjusted earnings per share of $2.06, surpassing analyst expectations. The blockbuster success of “Toy Story 5” contributed to record consumer products sales and over 2 billion streaming hours for the franchise on Disney+.
Originally reported by Variety →
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