Walt Disney Company

Strong Q3 momentum + raised confidence in FY (good / expected to continue) - Management characterized the quarter as “excellent,” with total company revenue up 7% YoY and total segment operating income (segment OI) up 21%, ahead of prior guidance. - Disney Experiences delivered record fiscal Q3 revenue (~$10B, +10% vs Q3 last year) with global guest +4% YoY and domestic parks attendance +3%; per-cap spending at domestic parks +4%. - Reiterated full-year outlook; Experiences expected to deliver segment OI growth at the high end of previously guided high-single-digit growth for FY26 (excluding the 53rd-week impact).

CapEx and capacity growth cycle is central to the bull case (opportunity) - Disney is in the middle of a major long-cycle parks investment program ($60B 10-year parks CapEx referenced) and guided that capital projects have rigorous return targets and are designed to support double-digit returns over the lifetime of projects. - CFO confirmed returns should not deteriorate as spending progresses—projects are timed more for operational/capacity sequencing (e.g., shipyards) than for “front-loading” low-hanging fruit. - Examples of expansion cited: Disney Cruise Line capacity growth, Disneyland Paris (World of Frozen) and ongoing attraction pipeline (e.g., Villains Land, Avengers Campus expansion), plus Abu Dhabi park development commitment.

Demand resilient despite macro and some international softness (mixed / challenges exist) - Management stressed promotions/discounting are targeted, not a sign of broad attendance weakness: domestic results show volume growth plus per-cap growth (+4% global guest; +3% domestic attendance), and they said they’re not discounting their way to volume. - However, they acknowledged macro pressure in some regions: weaker consumer demand in Asia affecting parks (Shanghai/Hong Kong referenced) and international visitation moderation. - Fuel/tariff environment: fuel volatility was described as having very little impact due to hedging and cruise fuel efficiency initiatives; ~$100M tariff refunds in Q3 benefited segment OI with “no impact on revenue,” with limited/no meaningful full-year impact.