Walt Disney Co (The)

Disney execution beat expectations (Q2) + continued confidence into back half - Revenue grew and total segment operating income (segment OI) grew: Revenue +7% YoY; total segment OI +4% YoY. - Company outperformed its guidance for the quarter, driven by stronger-than-expected revenue growth. - Back-half expectations: management emphasizes disciplined execution while expecting improving domestic parks trends in Q3 as prior headwinds begin to lap (per Experiences discussion).

Streaming (Disney+ / Hulu) – clear progress; engagement + churn focus - Management highlighted sequential acceleration in entertainment SVOD revenue growth: Q1’26 11% → Q2’26 13%. - Subscription revenue growth driven by both rate and volume; double-digit advertising revenue growth YoY. - Churn is a top priority; Disney states integrated Disney+ + Hulu experience is helping retention. - International growth opportunity: scaling outside the U.S. with increased local content investment, with encouraging early results (though “more work remains”). - Outlook framing: investors should watch whether churn and engagement improvements sustain the observed growth acceleration.

Disney Experiences – strong quarter but with near-term “known headwinds” (international + Epic) - Experiences Q2: Revenue +7% YoY; segment OI +5%, and both ahead of prior expectations, with record Q2. - Attendance: domestic parks attendance down 1% in Q2, impacted by international visitation and Epic-related headwinds; management says these should ease in coming quarters as they lap impacts. - Why OI didn’t fully “flow through” despite revenue strength: preopening costs for World of Frozen and Disney Adventure affected segment OI in Q2; these costs won’t recur to the same extent in 2H. - Bookings/demand: forward bookings encouraging; domestic park attendance expected to improve in Q3 vs Q2-year comparisons. - Capex tone: Disney highlighted heavy investment through 2026 (not all dates disclosed), with “major new attractions” and also mention of some capital-light expansions via partners.