Walt Disney Co (The)

Strong Q3 and reaffirmed full-year outlook (positive surprise) - Company delivered an “excellent quarter”: Total company revenue +7% YoY and total segment operating income (OI) +21% vs prior guidance. - Disney Experiences was a key driver: Experiences segment revenue ~$10B, +10% YoY, with record Q3 segment OI and global guest +4% YoY; domestic parks attendance +3% and domestic per-cap spending +4%. - Disney said it’s on track to finish the year strong and reiterated full-year outlook.

Parks/Cruise growth case: healthy bookings + pricing/volume discipline - Parks capacity cycle is working: backed by incremental capex initiatives (e.g., Villains Land, Avengers Campus expansion, plus Disney Cruise Line capacity). - Forward bookings were described as healthy for both Walt Disney World and Disney Cruise Line. - Pricing question: Disney emphasized targeted/promotional offers are not “discounting our way to volume growth” (they cited 4% global guest growth and 4% per-cap growth). - Analyst reassurance on ROIC: Disney said Experiences ROIC has increased over time and expects strong returns into the future—not deteriorating as the cycle progresses; sequencing timing is driven more by operational needs/shipyard capacity than “front-loading low-hanging fruit.”

Streaming (Disney+ / Hulu): integration progress + margins on track (opportunity) - Milestone: “App unification” now lets Hulu standalone and bundled subscribers link profiles and manage subscriptions on Disney+. - Disney reported Disney+ SVOD operating margin of 13% in fiscal Q3 and reaffirmed intent to achieve double-digit margins in fiscal ’26 (excluding the 53rd-week impact). - Tech stack/data integration remains the main work: Hulu-D+ profile & watch history is live; broader consolidation (datasets + live TV/add-ons) expected by end of calendar year. - Disney sees Disney+ as the digital centerpiece for a unified ecosystem; expects expanded ecosystem features starting spring 2027.