Disney streaming profit more than doubles to $712 million

Disney’s streaming business delivered a sharp increase in profitability during its fiscal third quarter, with operating income from Disney+ and Hulu more than doubling from the same period a year earlier.

Entertainment streaming operating income climbed to $712 million for the quarter ended June 27, 2026, compared with $329 million in the year-ago period. The unit’s operating margin reached 12.9%, providing further evidence that Disney’s streaming operations have moved beyond the heavy losses that marked the company’s initial push into direct-to-consumer distribution.

Revenue from Disney+ and Hulu’s subscription video-on-demand services increased 11% to $5.53 billion, up from $4.97 billion. Subscription revenue rose 15% to $4.72 billion, while advertising revenue increased 3% to $851 million.

The profit increase came as streaming revenue grew considerably faster than expenses. Programming, production and other costs increased 4% to $4.82 billion, allowing more of the additional subscription revenue to flow through to operating income.

Disney attributed subscription revenue growth to a 9% increase from subscriber volume, a 3% benefit from higher effective rates and a 1% lift from foreign exchange. Advertising impressions increased 8%, though that growth was partially offset by a 4% decline in advertising rates.

The company said the quarter’s streaming margin also benefited from the timing of marketing and programming expenses. Disney continues to expect its entertainment streaming business to produce a double-digit operating margin for the full fiscal year, excluding the effect of an additional 53rd week in its financial calendar.

The results strengthened Disney’s broader Entertainment segment, where operating income increased 64% to $1.68 billion. Total company revenue rose 7% to $25.25 billion, while adjusted earnings increased 28% to $2.06 per share.

Disney is continuing to position Disney+ as the digital center of the company, including further integration with Hulu, additional sports programming and increased investment in locally produced international content. The company said it plans to roughly triple the number of local original series available on Disney+ during the next three years as it seeks to attract international customers and reduce cancellations.

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Beginning in the first quarter of fiscal 2027, Disney also plans to move much of its consumer products business from the eperiences segment to entertainment.

The company said the change will bring merchandise and other intellectual property revenue closer to the studios that create the underlying films and television programs while more fully reflecting the returns generated by its entertainment content.