Earnings
Home›Earnings›Results›Disney raises buyback target to $9 billion and forecas…
Disney raises buyback target to $9 billion and forecasts earnings gains
Disney said its Q3 results included faster adjusted EPS, higher free cash flow, and margin strength, even as revenue missed analysts’ forecasts.
The Walt Disney Company reported Q3 revenue and margin growth and linked the update to a capital return push, with buybacks accelerating after management increased its share repurchase authorization. The company’s buyback target was raised to $9 billion by year end, $1 billion above the prior target, and Disney said aggressive purchases are expected to continue in the subsequent fiscal year, while dividend yield remains about 1.5% at recent prices, according to MarketBeat Ratings.
Disney said Q3 net revenue was $25.25 billion, up 6.8% year over year, supported by margin strength, while revenue fell short of analysts’ forecasts. The company also reported that buybacks lowered its average share count by nearly 2.4% in the first nine months of fiscal 2026 versus the same period in 2025.
By segment, Experiences led growth with a 10% gain, while Entertainment grew 6% and Sports rose 4%. Disney also pointed to streaming as the “linchpin” of its turnaround, noting mainstream television viewership has eroded, while it said the Sports segment remains a drag but is expected to ease.
For financial results, Disney reported segment operating income growth of 21%, adjusted earnings per share up 28%, and free cash flow up 63%. The company affirmed its 2026 outlook and issued a robust initial 2027 outlook, forecasting a double-digit adjusted earnings gain for 2027, with an adjustment for an extra week in the year.