Disney (DIS) reported fiscal third quarter earnings on Wednesday that beat expectations, driven by continued strength in its domestic parks business and a year-over-year swing to profitability in its streaming unit.
Still, shares slipped about 3% in mid-morning trade as a sharp decline in the company’s linear TV segment and a tepid outlook raised investor concerns.
Disney raised its full-year profit forecast to $5.85 a share, up from its May forecast of $5.75. But some Wall Street analysts said the outlook left more to be desired.
“The updated guide was not as good as bulls likely hoped,” KeyBanc analyst Brandon Nispel wrote in reaction, noting that while the quarter featured some bright spots, softer underlying results in parks and streaming could increase investor scrutiny ahead of Disney’s fiscal 2026 guidance, due next quarter.
Prior to its earnings update, Disney confirmed previous reports that ESPN has reached a preliminary deal to acquire key NFL Media assets, including NFL Network, NFL RedZone, and NFL Fantasy, in exchange for a 10% equity stake in the network.
Alongside the sale of NFL Network, the league and ESPN have also agreed to a second deal under which the league will license certain NFL content and intellectual property to ESPN for use across NFL Network and related assets. The announcement comes as ESPN confirmed an August 21 launch date for its new standalone service, which is set to cost $29.99 per month.
Disney’s ESPN is launching new standalone streaming service this fall. (AP Photo/Kamil Krzaczynski, File) · ASSOCIATED PRESS
The NFL agreement comes ahead of another major rights deal unveiled this week: ESPN will become the exclusive US streaming home of WWE Premium Live Events, including WrestleMania and SummerSlam, beginning in 2026 — a move seen as further strengthening the content lineup for its new DTC service.
The five-year deal will cost ESPN an average of $325 million per year, according to the Wall Street Journal. Disney declined to confirm the financials when asked by Yahoo Finance.
Analysts see the ESPN streaming debut as a key step toward more bundling opportunities with Disney+ and Hulu, as streamers across the industry work to retain subscribers and reduce churn.
The NFL deal had been previously reported by the Athletic. Ahead of its confirmation, Morgan Stanley analyst Ben Swinburne wrote in a Monday note, “With the NFL as an investor, ESPN’s long-term future is incrementally more secure.”
Disney reported revenue of $23.65 billion for the quarter, roughly in line with analyst expectations of $23.68 billion and up 2% from the same period last year.
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