The Walt Disney Company (DIS) investor relations material

Executive summary

• Fiscal Q3 revenue rose 7% year-over-year to $25.2 billion, with total segment operating income up 21% and income before income taxes up 14%.

• Experiences, Disney+, and ESPN all grew their user bases, with strong performance in Experiences, Toy Story 5's global box office success, and ESPN's record viewership.

• Net income attributable to shareholders fell 50% to $2.6 billion, primarily due to the absence of a prior-year non-cash tax benefit and an $812 million impairment charge related to A+E.

• Adjusted EPS increased 28% to $2.06, while reported diluted EPS fell 48% to $1.51 due to non-recurring items.

• The company reiterated its full-year outlook, highlighted strong execution across strategic priorities, and continued to leverage its diversified entertainment model and IP integration.

Financial highlights

• Quarterly revenues: $25.2B (+7% YoY); nine-month revenues: $76.4B (+6% YoY).

• Experiences segment revenue up 10% to $10.0B and operating income up 20% to $3.0B; Entertainment segment operating income up 64%.

• Free cash flow for the quarter increased 63% to $3.1B; for nine months, it declined 24% to $5.7B.

• Operating cash flow for nine months: $12.5B, reflecting higher tax payments and increased sports content spending.

• Share repurchases totaled $7.2B for the nine months, with 68 million shares repurchased.

Outlook and guidance

• Fiscal 2026 adjusted EPS growth expected at ~12% (excluding 53rd week) and ~16% (including 53rd week); double-digit adjusted EPS growth expected in fiscal 2027.

• At least $9 billion in share repurchases targeted for fiscal 2026, up from prior $7 billion guidance.

• Fiscal 2026 capital expenditures expected to be ~$9B, mainly for theme park and resort expansion.

• Content spend for fiscal 2026 projected at $24 billion, up modestly year-over-year.

• Plans to introduce expanded Disney+ ecosystem features in spring 2027.