Walt Disney shares surged 5.32% in pre-market trading, driven by a robust fiscal third-quarter earnings report that handily beat Wall Street’s profit forecasts. The entertainment giant reported adjusted earnings per share of $2.06, significantly exceeding the analyst consensus estimate of $1.86, representing a roughly 28% year-over-year increase. While revenue came in at $25.25 billion, slightly below the expected $25.40 billion, the strong bottom-line performance dominated market sentiment.

The profit beat was fueled by strength across its core businesses. The Experiences segment, encompassing theme parks and cruise lines, saw revenue jump 10% to nearly $10 billion, with domestic park attendance rising 3% and per-capita spending increasing 4%. The entertainment division also delivered, with operating income surging 64% to nearly $1.7 billion, boosted by the blockbuster success of "Toy Story 5" and a 15% increase in streaming subscription fees. Furthermore, Disney announced the sale of its 50% stake in A+E Global Media to Hearst for about $1.2 billion, with proceeds aimed at increasing its fiscal 2026 share repurchase target to at least $9 billion.

Under the leadership of new CEO Josh D’Amaro, Disney reiterated its full-year outlook for operating cash flow of at least $19 billion and capital expenditures of about $9 billion, while maintaining its target for double-digit adjusted EPS growth in fiscal 2027. The company also highlighted ongoing cost-reduction strategies across the enterprise, including labor and SG&A optimization, reinforcing investor confidence in its profitability trajectory.