The Walt Disney Company

Strong Q3 momentum + guidance reaffirmed (good) - Management said this was an “excellent quarter” with Disney Experiences delivering record fiscal Q3 revenue and segment operating income, and total company revenue up 7%. - Total segment operating income up 21% vs prior guidance, reflecting better-than-expected execution. - Core platforms showed growth: Disney Experiences global guests +4% YoY; Disney+ and ESPN grew guests/users/audiences (as described by management). - Full-year outlook reaffirmed: Experiences segment expected to deliver OI growth at the high end of prior high-single-digit guidance in fiscal ’26 (excluding the 53rd week impact).

Parks & Cruise capacity investment is working, but international is a swing factor (good + challenge) - Experiences segment Q3: Revenue ~$10B (+10% YoY). Domestic parks attendance +3%; per-cap spending +4%—i.e., both volume and yield grew. - Cruise: “strong” performance cited for Disney Destiny and Disney Adventure, plus healthy forward bookings for both Walt Disney World and Disney Cruise Line. - Macro sensitivity acknowledged: weaker consumer demand in Asia (specifically mentioned Shanghai/Hong Kong) continuing into Q4. - Fuel/tariffs: management said fuel hedging + efficiency initiatives are limiting impact; ~$100M of tariff refunds in the quarter with no revenue impact and immaterial full-year net impact (as described).

Disney+ / streaming integration progress supports margin and churn goals (opportunity) - Disney+ and Hulu integration milestones in Q3: Hulu subscribers can link profiles and watch history on Disney+; ongoing tech-stack and dataset unification work. - By end of calendar year: expect live TV and add-ons visible in the unified experience; plus continued product rollout (management referenced features such as Verts and upcoming ecosystem improvements). - Management reiterated streaming profitability direction: 13% SVOD operating margin in fiscal Q3 and expectation of double-digit margins in fiscal ’26 (excluding 53rd week). - Strategy remains: use Disney+ as the “digital centerpiece” + evolve a broader ecosystem (games/merch/personalization) to reduce churn and increase lifetime fan value.