Disney's streaming profits more than doubled in the April-to-June 2026 quarter, and the man about to take over as chief executive is already moving the furniture — shifting most of the company's consumer products business into the entertainment division starting this October.

The numbers landed on August 5, 2026, and they beat what Wall Street expected. Disney reported net income of $2.63 billion on $25.2 billion in revenue for the quarter ended June 27, 2026, with adjusted earnings per share of $2.06. Analysts surveyed by LSEG had forecast $1.85 per share on $25.4 billion in revenue. Overall revenue rose 7% year over year, and net income climbed 28% when income tax and one-time impairment and severance charges are stripped out. Total segment operating income was up 21% to $5.6 billion, with free cash flow of $3.1 billion (Variety).

The streaming engine did the heaviest lifting. Disney+ and Hulu together pulled in $5.53 billion in revenue, up 11% from the same period a year earlier. The entertainment streaming segment's operating income leapt from $329 million to $712 million. Total streaming subscription revenue rose 15% to $4.7 billion, and streaming ad sales ticked up 3% (Variety). Disney no longer discloses total subscriber counts on a quarterly basis, so the health of the business is now read through revenue and profit rather than a single headcount figure.

'Toy Story 5' gave the machine a real shove. The franchise has now crossed 2 billion hours streamed on Disney+ and set a record for consumer products sales, according to the company (Variety). That consumer products arm generated $1.1 billion in revenue this quarter — its strongest year-over-year growth in five years.

Which is exactly why Josh D'Amaro is relocating it. D'Amaro, 54, was named Disney's next CEO in February 2026 and has run the Disney Experiences segment — the division that houses the parks and consumer products — since 2020 (The Walt Disney Company). Now he is moving most of the consumer products business out of Disney Experiences and into the entertainment segment, effective fiscal Q1 2027, which runs October through December 2026. In plain terms, the toys and merchandise tied to Disney's films and shows will sit alongside the content that creates them, rather than beside the theme parks.

The parks are not standing still either. Disney Experiences has rolled out large-scale use of a proprietary AI tool called J.A.R.V.I.S., made available to more than 2,000 Imagineers earlier in 2026. The company is using AI-powered digital twins — virtual replicas of physical attractions — and simulation tools to design and stress-test new rides, including those planned for the Abu Dhabi park (Variety).

For anyone holding a Disney+ subscription or planning a park trip, the takeaway is straightforward: the company behind both is making more money from streaming than it ever has, and the person about to run the whole operation is betting that films, shows, toys and merchandise belong under one roof.