Disney raises dividend and buybacks as theme parks defy downturn fears

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Disney has said it will boost its dividend and double its share buyback programme next year after its theme parks reported another quarter of robust growth, offsetting declines in its film and television businesses.

Theme park attendance has been strong despite fears of weakening consumer spending. Disney’s experiences business, which includes theme parks and cruise lines, reported operating income of $1.9bn for the three months to the end of September, up 13 per cent compared with the previous year.

The company added 3.8mn Disney+ streaming subscribers in the quarter, despite concerns about customer cancellations over its brief suspension of Jimmy Kimmel’s late-night show following comments the comedian made in the aftermath of Charlie Kirk’s murder.

Operating income at the direct-to-consumer streaming business increased by $99mn to $352mn.

Disney reported net income of $1.4bn in the quarter ending in September, up from $564mn a year earlier, when the company reported higher impairments. Adjusted earnings per share of $1.11 were ahead of Wall Street forecasts of $1.07.

Revenue of $22.5bn in the quarter was unchanged on the previous year and fell short of analyst expectations.

The film division suffered in comparison with last year’s blockbuster box office performance of Inside Out 2 and Deadpool and Wolverine, and reported an operating loss of $52mn, compared with an operating profit of $316mn a year earlier. But the company said it expected double-digit growth in the movie business in 2026.

Disney said it would double its share buybacks to $7bn in 2026 and pay a cash dividend of $1.50 a share, up from $1. The stock fell 3 per cent in pre-market trading.

“This was another year of great progress,” said Bob Iger, whose tenure as Disney’s chief executive is expected to end in December 2026. He singled out the “meaningful progress” the company had made in its streaming business.

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