Walt Disney Co

Strong Q3 performance + upgraded/confirmed full-year momentum - CEO Josh D’Amaro called Q3 “excellent” and said results show Disney is operating from “real position of strength.” - Total company revenue: +7% YoY - Segment operating income (OI): +21% YoY, ahead of prior guidance - Disney Experiences: “record” Q3 revenue and segment OI; global guests +4% YoY and domestic parks attendance +3% with domestic per-cap spending +4% - Outlook: Disney reiterated its full-year outlook and expects Experiences OI growth at the high end of previously guided high-single-digit range for FY26 (excluding the 53rd-week impact).

Parks/Experiences capital cycle: capacity growth, pricing discipline, and ROIC confidence - Disney is deep into a long-term parks expansion cycle: $60B 10-year Parks CapEx (context) and emphasized ongoing investment generating returns. - Balance volume vs yield: CEO said Disney is balancing both as capacity expands—promotions are targeted rather than a sign of demand weakness. - CFO said returns should not deteriorate over time: projects are approved with rigorous return expectations, and sequencing is driven more by operational needs and shipyard/capacity constraints than by “front-loading” low-hanging fruit. - Capacity boosts: examples cited include new attractions (e.g., Villains Land, Avengers Campus expansion) and cruise ship expansion (capacity adding from DCL).

Promotions/discounting: not framed as a “warning sign,” but investors asked the right question - Investor asked whether new U.S. parks discount programs (e.g., after-2pm pricing (Walt Disney World), Anaheim resident pricing (Disneyland), evening access) indicate concern about attendance or international weakness. - Management response: discounts are targeted to specific guest segments (value seekers, locals, flexible timing) and are part of evolved commercial strategy to maximize use of capacity. - Management explicitly argued Disney is not discounting its way to volume given the 4% global guest growth and 4% per-cap growth in domestic parks; domestic strength helped offset international moderation.