What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-02-02 compared with 2025-08-06 · 172 added, 1119 removed, 372 unchanged (78% of the section changed)

5 unchanged sentences

• Current Quarter Results Compared to Prior-Year Quarter

• Current Nine-Month Period Results Compared to Prior-Year Nine-Month Period

• Seasonality

5 unchanged sentences

• Other Matters

• DTC Product Descriptions, Key Definitions and Supplemental Information

• Supplemental Guarantor Financial Information

1 unchanged sentence

Quarter Ended % Change

(Worse) Nine Months Ended % Change

(in millions, except per share data) June 28,

2025 June 29,

2024 June 28,

2025 June 29,

(in millions, except per share data) December 27,

2025 December 28,

Services $ 23,206 $ 22,048 5 %

7 unchanged sentences

Total costs and expenses (22,106) (20,612) (7) %

Restructuring and impairment charges ( 185 ) — nm ( 437 ) ( 2,052 ) 79 %

Other expense — ( 65 ) 100 % — ( 65 ) 100 %

Restructuring and impairment charges — ( 143 ) 100 %

Interest expense, net ( 275 ) ( 367 ) 25 %

1 unchanged sentence

Income before income taxes 3,693 3,660 1 %

Income taxes 2,732 ( 251 ) nm 2,030 ( 1,412 ) nm

Income taxes ( 1,209 ) ( 1,016 ) (19) %

Net income 2,484 2,644 (6) %

4 unchanged sentences

$ 1.34 $ 1.40 (4) %

Star India Transaction

On November 14, 2024, the Company and RIL completed the Star India Transaction (see Note 4 to the Condensed Consolidated Financial Statements) following which the Company began recognizing its 37% share of the India joint venture’s

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

results in “Equity in the income of investees.” Star India results through November 14, 2024 were consolidated in the Company’s financial results and reported in the Entertainment and Sports segments.

CURRENT QUARTER RESULTS COMPARED TO PRIOR-YEAR QUARTER

Revenues for the quarter increased 5%, or $1.3 billion, to $26.0 billion;

net income attributable to Disney increased to $5.3 billion compared to $2.6 billion in the prior-year quarter;

and diluted earnings per share (EPS) attributable to Disney increased to $2.92 compared to $1.43 in the prior-year quarter.

The net income and EPS increases were due to a lower effective tax rate in the current quarter due to a non-cash tax benefit recognized upon the change in Hulu’s U.S.

income tax classification, partially offset by an incremental payment to acquire Hulu.

In addition, the increases in net income and EPS were due to higher operating income at Experiences and Sports, partially offset by lower operating income at Entertainment.

Service revenues for the quarter increased 2%, or $0.4 billion, to $21.2 billion, which included an approximate 3 percentage point decrease from the Star India Transaction.

Aside from this impact, service revenues increased due to higher subscription revenue and growth at our parks and experiences businesses.

net income attributable to Disney decreased to $2.4 billion compared to $2.6 billion in the prior-year quarter;

and diluted earnings per share (EPS) attributable to Disney decreased to $1.34 compared to $1.40 in the prior-year quarter.

The net income and EPS decreases were due to lower operating income at Entertainment and a higher effective income tax rate.

These decreases were partially offset by higher operating income at Experiences, the comparison to charges taken in connection with the Star India Transaction and a legal settlement in the prior-year quarter and lower intangible amortization and interest expense.

Service revenues for the quarter increased 5%, or $1.2 billion, to $23.2 billion, which included an approximate 1 percentage point increase from the Fubo Transaction and an approximate 1 percentage point decrease from the Star India

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Aside from these impacts, service revenues increased due to an increase in content sales, growth at our parks and experiences businesses and, to a lesser extent, higher subscription and affiliate fees.

Product revenues for the quarter increased 5%, or $0.1 billion, to $2.8 billion due to growth at our parks and experiences businesses.

Costs and expenses

Cost of services for the quarter decreased 2%, or $0.2 billion, to $13.0 billion, which included an approximate 7 percentage point decrease due to the Star India Transaction.

This decrease was partially offset by higher programming and production costs and, to a lesser extent, the impact of inflation and increased volumes at our parks and experiences businesses.

Selling, general, administrative and other costs increased 7%, or $0.3 billion, to $4.1 billion, which included an approximate 2 percentage point decrease due to the Star India Transaction.

Aside from this impact, selling, general, administrative and other costs increased driven by higher marketing costs.

Depreciation and amortization increased 9%, or $0.1 billion, to $1.3 billion driven by higher depreciation at our parks and experiences businesses.

Cost of services for the quarter increased 9%, or $1.2 billion, to $15.0 billion, which included an approximate 2 percentage point increase from the Fubo Transaction and an approximate 1 percentage point decrease due to the Star India Transaction.

Aside from these impacts, cost of services increased due to higher programming and production costs and, to a lesser extent, the impact of inflation and increased volumes at our parks and experiences businesses.

Selling, general, administrative and other costs increased 5%, or $0.2 billion, to $4.1 billion, due to higher marketing costs.

Depreciation and amortization increased 3% to $1.3 billion driven by higher depreciation at our parks and experiences and Entertainment businesses, partially offset by lower amortization of intangible assets.

Restructuring and impairment charges

Charges in the current quarter were $185 million primarily for an impairment of an equity investment.

Other expense

In the prior-year quarter, the Company recorded a charge of $65 million related to a legal ruling.

In the prior-year quarter, the Company recorded a $143 million loss in connection with the Star India Transaction.

Interest expense, net

1 unchanged sentence

Quarter Ended

(in millions) June 28,

2025 June 29,

(in millions) December 27,

2025 December 28,

2024 % Change

3 unchanged sentences

Interest expense, net $ (275) $ (367) 25 %

The decrease in interest expense was due to lower average debt balances and rates, partially offset by a decrease in capitalized interest.

The decrease in interest income, investment income and other was due to an unfavorable comparison related to pension and postretirement benefit costs, other than service cost.

Equity in the Income of Investees

Income from equity investees decreased $71 million, to $75 million from $146 million, primarily due to a loss from the India joint venture in the current quarter.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

The decrease in interest expense was due to lower average debt balances and an increase in capitalized interest.

The increase in interest income, investment income and other was due to a favorable comparison related to pension and postretirement benefit costs, other than service cost.

Quarter Ended

2025 June 29,

2025 December 28,

Income before income taxes

3 unchanged sentences

32.7 % 27.8 %

The effective income tax rate was negative 85.1% in the current quarter compared to a positive effective income tax rate of 8.1% in the prior-year quarter.

The current quarter included a $3.3 billion non-cash tax benefit recognized upon the change in Hulu’s U.S.

income tax classification.

Aside from the $3.3 billion benefit, both the current and prior-year quarters reflected favorable adjustments related to prior year tax matters.

The increase in the effective income tax rate in the current quarter compared to the prior-year quarter was due to a non-cash tax charge in the current quarter resulting from the Fubo Transaction and an unfavorable impact in the current quarter for adjustments related to prior years, partially offset by a non-cash tax-charge in the prior-year quarter in connection with the Star India Transaction.

Noncontrolling Interests

Quarter Ended

(in millions) June 28,

2025 June 29,

(in millions) December 27,

2025 December 28,

2024 % Change

2 unchanged sentences

$ (82) $ (90) 9 %

The increase in net income attributable to noncontrolling interests was due to an incremental payment to acquire Hulu.

Net income attributable to noncontrolling interests is determined on income after royalties and management fees, financing costs and income taxes, as applicable.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Certain Items Impacting Results in the Quarter

Results for the quarter ended June 28, 2025 were impacted by the following:

• A $3,277 million non-cash tax benefit recognized upon the change in Hulu’s U.S.

income tax classification recognized in “Income taxes” and $477 million recognized in “Net income attributable to noncontrolling interests” related to the acquisition of Hulu (Hulu Transaction Impacts) (see Note 4 to the Condensed Consolidated Financial Statements)

• TFCF and Hulu Acquisition Amortization of $395 million

• Restructuring and impairment charges of $185 million

Results for the quarter ended June 29, 2024 were impacted by the following:

• Income tax reserve adjustments of $418 million

• TFCF and Hulu Acquisition Amortization of $397 million

• Other expense of $65 million related to a legal ruling

Results for the quarter ended December 27, 2025 were impacted by the following:

• Non-cash tax charge of $307 million resulting from the Fubo Transaction

• Acquisition Amortization of $300 million

Results for the quarter ended December 28, 2024 were impacted by the following:

• An impairment charge of $143 million recorded in connection with the Star India Transaction.

Tax expense includes a $31 million tax benefit on the impairment charge and a non-cash tax charge of $244 million related to the Star India Transaction

• Acquisition Amortization of $397 million

A summary of the impact of these items on EPS is as follows:

1 unchanged sentence

After-Tax Income (Loss) EPS Favorable (Adverse) (2)

Quarter Ended June 28, 2025:

Hulu Transaction Impacts

$ — $ 3,277 $ 3,277 $ 1.56

TFCF and Hulu Acquisition Amortization

(395) 92 (303) (0.16)

Restructuring and impairment charges

(185) 43 (142) (0.08)

Total $ (580) $ 3,412 $ 2,832 $ 1.31

Quarter Ended June 29, 2024:

Income tax reserve adjustments

$ — $ 418 $ 418 $ 0.23

TFCF and Hulu Acquisition Amortization

(397) 93 (304) (0.16)

Other expense

(65) 11 (54) (0.03)

Total $ (462) $ 522 $ 60 $ 0.04

(1) Tax benefit (expense) amounts are determined using the tax rate applicable to the individual item.

(2) EPS is net of noncontrolling interest share, where applicable.

Total may not equal the sum of the column due to rounding.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

CURRENT NINE-MONTH PERIOD RESULTS COMPARED TO PRIOR-YEAR NINE-MONTH PERIOD

Revenues for the current period increased $3.2 billion, to $72.0 billion;

net income attributable to Disney increased $6.6 billion, to $11.1 billion;

and EPS increased to $6.12 from $2.46 in the prior-year period.

The net income and EPS increases were due to a lower effective tax rate in the current period compared to the prior-year period and the comparison to goodwill impairments in the prior-year period.

In addition, the increases in net income and EPS were due to higher operating income at Entertainment, partially offset by an incremental payment to acquire Hulu.

The lower effective tax rate was due to a non-cash tax benefit recognized in the current period upon the change in Hulu’s U.S.

income tax classification.

Service revenues for the current period increased 5%, or $3.0 billion to $64.5 billion, which included an approximate 3 percentage point unfavorable impact from the Star India Transaction.

Aside from this impact, service revenues increased due to higher subscription revenue, growth at our parks and experiences businesses, an increase in theatrical distribution revenue, and, to a lesser extent, higher advertising revenue.

Product revenues for the current period increased 3%, or $0.2 billion, to $7.4 billion, due to growth at our parks and experiences businesses.

Costs and expenses

Cost of services for the current period increased 1%, or $0.4 billion, to $40.2 billion, which included an approximate 5 percentage point decrease due to the Star India Transaction.

Aside from this impact, cost of services increased due to higher programming and production costs and, to a lesser extent, the impact of inflation and increased volumes at our parks and experiences businesses.

Selling, general, administrative and other costs increased 5%, or $0.6 billion, to $12.1 billion, which included an approximate 2 percentage point decrease due to the Star India Transaction.

Aside from this impact, selling, general, administrative and other costs increased primarily due to higher marketing costs.

Depreciation and amortization increased 6%, or $0.2 billion, to $3.9 billion due to higher depreciation at our parks and experiences businesses.

Restructuring and impairment charges

Charges in the current period were $185 million primarily for an impairment of an equity investment, $143 million for impairment of goodwill related to Star India and $109 million for content impairments .

Charges in t he prior-year period were $2,052 million primarily for goodwill impairments related to Star India and entertainment linear networks.

Other expense

In the prior-year period, the Company recorded a charge of $65 million related to a legal ruling.

Interest expense, net

Interest expense, net is as follows:

Nine Months Ended

(in millions) June 28,

2025 June 29,

2024 % Change

Better (Worse)

Interest expense $ (1,396) $ (1,538) 9 %

Interest income, investment income and other 359 639 (44) %

Interest expense, net $ (1,037) $ (899) (15) %

The decrease in interest expense was due to lower average rates and debt balances, partially offset by a decrease in capitalized interest.

The decrease in interest income, investment income and other reflected the impact of lower cash and cash equivalent balances, an unfavorable comparison of pension and postretirement benefit costs, other than service cost, and a net investment loss in the current period compared to a net investment gain in the prior-year period.

Equity in the Income of Investees

Income from equity investees decreased $265 million, to $203 million from $468 million, due to losses from the India joint venture in the current period and lower income from A+E.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Nine Months Ended

2025 June 29,

Income before income taxes

$ 9,958 $ 6,621

Income tax (benefit) expense

(2,030) 1,412

Effective income tax rate

(20.4) % 21.3 %

The effective income tax rate was negative 20.4% in the current period compared to a positive effective income tax rate of 21.3% in the prior-year period.

The current period included a $3.3 billion non-cash tax benefit recognized upon the change in Hulu’s U.S.

income tax classification.

Aside from the $3.3 billion benefit, both the current and prior-year periods reflected favorable adjustments related to prior year tax matters.

The effective income tax rate in the prior-year period also reflected an unfavorable impact of approximately 5 percentage points from goodwill impairments, which are not tax deductible.

Noncontrolling Interests

Nine Months Ended

(in millions) June 28,

2025 June 29,

2024 % Change

Better (Worse)

Net income attributable to noncontrolling interests

$ (897) $ (697) (29) %

The increase in net income attributable to noncontrolling interests was due to an incremental payment to acquire Hulu, partially offset by the accretion of NBC Universal’s interest in Hulu in the prior-year period and, to a lesser extent, lower results at ESPN, Hong Kong Disneyland Resort and Shanghai Disney Resort.

Certain Items Impacting Results in the Nine Month Period

Results for the nine months ended June 28, 2025 were impacted by the following:

• Hulu Transaction Impacts of $3,277 million recognized in “Income taxes” and $477 million recognized in “Net income attributable to noncontrolling interests”

• Resolution of a prior-year tax matter of $1,016 million

• TFCF and Hulu Acquisition Amortization of $1,188 million

• Restructuring and impairment charges of $437 million and a non-cash tax expense of $244 million

Results for the nine months ended June 29, 2024 were impacted by the following:

• Restructuring and impairment charges of $2,052 million and a non-cash tax benefit of $113 million

• TFCF and Hulu Acquisition Amortization of $1,282 million

• Other expense of $65 million related to a legal ruling

• Income tax reserve adjustments of $418 million

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

A summary of the impact of these items on EPS is as follows:

(in millions, except per share data) Pre-Tax Income (Loss) Tax Benefit

(Expense) (1)

After-Tax Income (Loss) EPS Favorable

(Adverse) (2)

Nine Months Ended June 28, 2025:

Hulu Transaction Impacts

$ — $ 3,277 $ 3,277 $ 1.55

Resolution of a prior-year tax matter

Quarter Ended December 27, 2025:

Non-cash tax charge resulting from the Fubo Transaction

$ — $ (307) $ (307) $ (0.17)

TFCF and Hulu Acquisition Amortization

Acquisition Amortization

(300) 70 (230) (0.12)

Restructuring and impairment charges (437) (145) (582) (0.32)

Total $ (300) $ (237) $ (537) $ (0.29)

Nine Months Ended June 29, 2024:

Restructuring and impairment charges $ (2,052) $ 121 $ (1,931) $ (1.05)

TFCF and Hulu Acquisition Amortization

(1,282) 299 (983) (0.52)

Other expense

Quarter Ended December 28, 2024:

Star India Transaction

$ (143) $ (213) $ (356) $ (0.20)

Income Tax Reserve Adjustments

Acquisition Amortization

(397) 93 (304) (0.16)

4 unchanged sentences

The Company’s businesses are subject to the effects of seasonality.

Consequently, the operating results for the nine months ended June 28, 2025 for each business segment, and for the Company as a whole, are not necessarily indicative of results to be expected for the full year.

Entertainment revenues are subject to seasonal advertising patterns, changes in viewership and subscriber levels, timing and performance of film releases in the theatrical and home entertainment markets, and the timing of and demand for film and television programs.

In general, domestic advertising revenues are typically somewhat higher during the fall and somewhat lower during the summer months.

Affiliate revenues vary with the subscriber trends of multi-channel video programming distributors (i.e.

cable, satellite telecommunications and digital over-the-top service providers).

Consequently, the operating results for the quarter ended December 27, 2025 for each business segment, and for the Company as a whole, are not necessarily indicative of results to be expected for the full year.

Entertainment revenues are subject to seasonal and other cyclical advertising patterns, changes in viewership and subscriber levels, timing and performance of theatrical releases, and the timing of and demand for film and television programs.

In general, domestic advertising revenues are typically somewhat higher during the fall and somewhat lower during the summer months and domestic advertising revenue is typically higher during election cycles.

Affiliate and subscriptions fees vary with the subscriber trends of multi-channel video programming distributors (i.e.

cable, satellite telecommunications and digital over-the-top service providers) and our streaming services.

Theatrical release dates are determined by several factors, including competition and the timing of vacation and holiday periods.

Sports revenues are subject to seasonal advertising patterns, changes in viewership and subscriber levels, and the availability of and demand for sports programming.

In addition, advertising revenues generated from sports programming are impacted by the timing of sports seasons and events, which varies throughout the year or may take place periodically (e.g.

Advertising revenues generated from sports programming are also impacted by the timing of sports seasons and events, which timing may vary throughout the year or may take place periodically (e.g.

biannually, quadrennially).

Experiences revenues fluctuate with changes in theme park attendance and resort occupancy resulting from the seasonal nature of vacation travel and leisure activities, which generally results in higher revenues during the Company’s first and fourth fiscal quarters, the opening of new guest offerings and pricing and promotional offers.

Experiences revenues fluctuate with changes in theme park attendance and resort occupancy resulting from the seasonal nature of vacation travel and leisure activities, the opening of new guest offerings and pricing and promotional offers.

Peak attendance and resort occupancy generally occur during the summer months when school vacations occur and during early winter and spring holiday periods.

In addition, theme park and resort revenues may be higher during significant celebrations such as theme park or character anniversaries and lower in the periods following such celebrations.

Consumer products revenue fluctuates with consumer purchasing behavior, which generally results in higher revenues during the Company’s first fiscal quarter due to the winter holiday season.

In addition, licensing revenues fluctuate with the timing and performance of our film and television content.

In addition, theme park and resort revenues may be higher during significant celebrations such as theme park or character anniversaries and lower in the periods preceding or following such celebrations.

Consumer products revenue fluctuates with consumer purchasing behavior, which generally results in higher revenues during the Company’s first and fourth fiscal quarters.

In addition, licensing revenues fluctuate with the timing and performance of theatrical and game releases and direct-to-consumer content.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

4 unchanged sentences

Quarter Ended % Change

(Worse) Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

2024 June 28,

2025 June 29,

(in millions) December 27,

2025 December 28,

Entertainment $ 11,609 $ 10,872 7 %

4 unchanged sentences

Revenues $ 25,981 $ 24,690 5 %

(1) Reflects fees paid by (a) Hulu to ESPN and the Entertainment linear networks business for the right to air their networks on Hulu Live and (b) ABC Network and Disney+ to ESPN to program certain sports content on ABC Network and Disney+.

(1) Reflects fees paid by (a) the Entertainment vMVPD services to ESPN and the Entertainment linear networks for the right to air the networks on Hulu Live and Fubo and (b) the Entertainment segment to the Sports segment to program certain sports content on ABC Network and Disney+.

The following table presents income from our operating segments and other components of income before income taxes:

Quarter Ended % Change

(Worse) Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

2024 June 28,

2025 June 29,

(in millions) December 27,

2025 December 28,

Entertainment operating income $ 1,100 $ 1,703 (35) %

4 unchanged sentences

Equity in the loss of India joint venture

(50) — nm (186) — nm

Restructuring and impairment charges (185) — nm (437) (2,052) 79 %

Other expense

(28) (33) 15 %

Restructuring and impairment charges — (143) 100 %

Interest expense, net (275) (367) 25 %

TFCF and Hulu Acquisition Amortization

Acquisition Amortization

(300) (397) 24 %

3 unchanged sentences

Quarter Ended % Change

(Worse) Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

2024 June 28,

2025 June 29,

(in millions) December 27,

2025 December 28,

Entertainment $ 205 $ 165 (24) %

9 unchanged sentences

Quarter Ended % Change

(Worse) Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

2024 June 28,

2025 June 29,

(in millions) December 27,

2025 December 28,

Entertainment $ 13 $ 13 — %

Experiences 27 27 — %

TFCF and Hulu intangible assets 326 326 — % 980 1,068 8 %

Acquisition amortization - intangible assets

Total amortization of intangible assets $ 276 $ 367 25 %

1 unchanged sentence

Entertainment

Revenue and operating results for the Entertainment segment are as follows:

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

Linear Networks $ 2,271 $ 2,663 (15) %

Direct-to-Consumer 6,176 5,805 6 %

Content Sales/Licensing and Other 2,257 2,112 7 %

$ 10,704 $ 10,580 1 %

Segment operating income (loss):

Linear Networks $ 697 $ 966 (28) %

Direct-to-Consumer 346 (19) nm

Content Sales/Licensing and Other (21) 254 nm

$ 1,022 $ 1,201 (15) %

The increase in Entertainment revenues in the current quarter compared to the prior-year quarter was due to DTC subscription revenue growth and higher distribution revenues at Content Sales/Licensing and Other.

These increases were partially offset by decreases in affiliate and advertising revenue primarily due to the Star India Transaction.

Operating income

The decrease in Entertainment operating income in the current quarter compared to the prior-year quarter was due to lower results at Content Sales/Licensing and Other and Linear Networks, partially offset by an improvement at Direct-to-Consumer.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Linear Networks

Operating results for Linear Networks are as follows:

Operating results for Entertainment are as follows:

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

Affiliate fees $ 1,550 $ 1,726 (10) %

(in millions) December 27,

2025 December 28,

Subscription and affiliate fees $ 7,250 $ 6,720 8 %

Advertising 1,775 1,898 (6) %

Content sales 1,936 1,585 22 %

Other 648 669 (3) %

5 unchanged sentences

Operating Income $ 1,100 $ 1,703 (35) %

Revenues - Affiliate fees

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

Domestic $ 1,416 $ 1,451 (2) %

International 134 275 (51) %

$ 1,550 $ 1,726 (10) %

The decrease in domestic affiliate revenue was due to a decline of 9% from fewer subscribers, partially offset by an increase of 7% from higher effective rates.

Lower international affiliate revenue was attributable to decreases of 39% from the Star India Transaction, 7% from lower effective rates and 3% from fewer subscribers.

Revenues - Subscription and affiliate fees

Growth in subscription and affiliate fees was due to increases of 4% from higher effective rates, 4% from the Fubo Transaction and 1% from more subscribers, partially offset by decreases of 1% from the Star India Transaction and 1% from the temporary suspension of carriage with an affiliate in the current quarter.

Revenues - Advertising

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

Domestic $ 604 $ 672 (10) %

International 73 235 (69) %

$ 677 $ 907 (25) %

The decline in domestic advertising revenue was due to decreases of 8% from lower average viewership and 5% from a decrease in rates.

Lower international advertising revenue reflected a decrease of 63% from the Star India Transaction.

The decline in advertising revenue was due to decreases of 5% from the Star India Transaction and 5% from lower rates, partially offset by increases of 3% from higher impressions and 1% from the Fubo Transaction.

Rates and impressions included an impact from less political advertising.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Revenues - Content sales

Content sales revenue increased due to an increase of 25% from theatrical distribution, partially offset by a decrease of 6% from home entertainment distribution.

Higher theatrical distribution revenue was attributable to more significant titles released in the current quarter compared to the prior-year quarter.

The current quarter included Zootopia 2 , Avatar:

Fire and Ash, Predator:

Badlands and Tron:

The prior-year quarter included Moana 2 and Mufasa:

The Lion King.

Operating expenses

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

(in millions) December 27,

2025 December 28,

Programming and production costs $ (6,314) $ (5,475) (15) %

Domestic $ (813) $ (811) — %

International (90) (173) 48 %

Total programming and production costs (903) (984) 8 %

Other operating expenses (1,469) (1,340) (10) %

$ (7,783) $ (6,815) (14) %

Domestic programming and production costs were comparable to the prior-year quarter as higher fees paid to the Sports segment to program sports content on ABC were offset by lower costs for non-sports programming.

International programming and production costs decreased due to the Star India Transaction.

The decrease in other operating expenses was driven by lower technology costs and the Star India Transaction.

Equity in the Income of Investees

Income from equity investees decreased $29 million, to $98 million from $127 million, due to lower income from A+E attributable to decreases in affiliate and advertising revenue, partially offset by lower marketing costs.

Operating Income from Linear Networks

Operating income from Linear Networks decreased $269 million, to $697 million from $966 million, due to lower results at our international business as a result of the Star India Transaction and at our domestic business.

Supplemental revenue and operating income

The following table provides supplemental revenue and operating income detail for Linear Networks:

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

Supplemental revenue detail

Domestic $ 2,052 $ 2,145 (4) %

International 219 518 (58) %

$ 2,271 $ 2,663 (15) %

Supplemental operating income detail

Domestic $ 587 $ 682 (14) %

International 12 157 (92) %

Equity in the income of investees 98 127 (23) %

$ 697 $ 966 (28) %

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Direct-to-Consumer

Operating results for Direct-to-Consumer are as follows:

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

Subscription fees $ 5,215 $ 4,729 10 %

Advertising 932 1,004 (7) %

Other 29 72 (60) %

Total revenues 6,176 5,805 6 %

Operating expenses (4,578) (4,542) (1) %

Selling, general, administrative and other (1,158) (1,197) 3 %

Depreciation and amortization (94) (85) (11) %

Operating Income (Loss)

$ 346 $ (19) nm

Revenues - Subscription fees

Growth in subscription fees reflected increases of 8% from higher effective rates attributable to increases in pricing and 4% from more subscribers, partially offset by decreases of 1% from the Star India Transaction and 1% from an unfavorable movement of the U.S.

dollar against major currencies (Foreign Exchange Impact).

Revenues - Advertising

Lower advertising revenue was attributable to decreases of 10% from lower rates and 9% from the Star India Transaction, partially offset by an increase of 11% from growth in impressions.

Revenues - Other

The decrease in other revenue was primarily due to an unfavorable Foreign Exchange Impact and a decrease in recognition of minimum guarantee shortfalls from wholesale distributors.

Key metrics (1)

Paid subscribers at:

% Change Better (Worse)

(in millions) June 28,

2025 March 29,

2025 June 29,

2024 June 28, 2025 vs.

June 28, 2025 vs.

June 29, 2024

Domestic (U.S.

and Canada) 57.8 57.8 54.8 — % 5 %

International (2)

69.9 68.2 66.0 2 % 6 %

Disney+ (2)(3)

127.8 126.0 120.8 1 % 6 %

SVOD Only 51.2 50.3 46.7 2 % 10 %

Live TV + SVOD 4.3 4.4 4.4 (2) % (2) %

Total Hulu (3)

55.5 54.7 51.1 1 % 9 %

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Average Monthly Revenue Per Paid Subscriber:

Quarter Ended % Change Better (Worse)

2025 March 29,

2025 June 29,

2024 June 28, 2025 vs.

29, 2025 June 28, 2025 vs.

June 29, 2024

Domestic (U.S.

and Canada) $ 8.09 $ 8.06 $ 7.74 — % 5 %

International (2)

7.67 7.52 6.56 2 % 17 %

7.86 7.77 7.09 1 % 11 %

SVOD Only 12.40 12.36 12.73 — % (3) %

Live TV + SVOD 100.27 99.94 96.11 — % 4 %

(1) See discussion on pages 71 and 72 — DTC Product Descriptions, Key Definitions and Supplemental Information and Planned Reporting Changes

(2) The prior-year quarter Paid Subscribers and Average Monthly Revenue per Paid Subscriber have been adjusted to include Disney+ subscribers in Southeast Asia.

These subscribers were previously reported with Disney+ Hotstar, which is no longer presented as this business was included in the Star India Transaction.

(3) Total may not equal the sum of the column due to rounding.

Average Monthly Revenue Per Paid Subscriber - Third Quarter of Fiscal 2025 Comparison to Second Quarter of Fiscal 2025

Domestic Disney+ average monthly revenue per paid subscriber increased from $8.06 to $8.09 as higher advertising revenue was largely offset by the impact of subscriber mix shifts.

International Disney+ average monthly revenue per paid subscriber increased from $7.52 to $7.67 due to a favorable Foreign Exchange Impact and increases in pricing, partially offset by the impact of subscriber mix shifts.

Hulu SVOD Only average monthly revenue per paid subscriber increased from $12.36 to $12.40 as higher advertising revenue was largely offset by the impact of subscriber mix shifts.

Hulu Live TV + SVOD average monthly revenue per paid subscriber increased from $99.94 to $100.27 due to higher advertising revenue.

Average Monthly Revenue Per Paid Subscriber - Third Quarter of Fiscal 2025 Comparison to Third Quarter of Fiscal 2024

Domestic Disney+ average monthly revenue per paid subscriber increased from $7.74 to $8.09 due to increases in pricing and higher advertising revenue, partially offset by the impact of subscriber mix shifts.

International Disney+ average monthly revenue per paid subscriber increased from $6.56 to $7.67 due to increases in pricing, partially offset by the impact of subscriber mix shifts.

Hulu SVOD Only average monthly revenue per paid subscriber decreased from $12.73 to $12.40 due to lower advertising revenue, partially offset by increases in pricing and the impact of subscriber mix shifts.

Hulu Live TV + SVOD average monthly revenue per paid subscriber increased from $96.11 to $100.27 due to increases in pricing, partially offset by the impact of subscriber mix shifts and lower advertising revenue.

Operating expenses

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

Programming and production costs

$ (2,230) $ (2,142) (4) %

(1,356) (1,508) 10 %

Total programming and production costs (3,586) (3,650) 2 %

Other operating expense (992) (892) (11) %

$ (4,578) $ (4,542) (1) %

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

The increase in programming and production costs at Hulu was due to higher subscriber-based license fees attributable to more subscribers to bundles with third-party offerings.

The decrease in programming and production costs at Disney+ was due to the Star India Transaction, reflecting the comparison to International Cricket Council (ICC) programming, which was carried on Disney+ Hotstar in the prior-year quarter, partially offset by costs for more hours of content available on the service.

The increase in other operating expense was due to higher technology and distribution costs.

Selling, general, administrative and other

Selling, general, administrative and other costs decreased $39 million, to $1,158 million from $1,197 million, due to lower marketing costs.

Operating Income (Loss) from Direct-to-Consumer

Operating results from Direct-to-Consumer increased $365 million, to income of $346 million from a loss of $19 million, due to increases at Disney+ and Hulu.

Content Sales/Licensing and Other

Operating results for Content Sales/Licensing and Other are as follows:

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

TV/VOD and home entertainment distribution

$ 875 $ 806 9 %

Theatrical distribution 820 724 13 %

562 582 (3) %

Total revenues 2,257 2,112 7 %

Operating expenses (1,461) (1,204) (21) %

The increase in programming and production costs was due to increases of 11% from theatrical distribution, 4% from the Fubo Transaction and 3% from our streaming services.

Higher programming and production costs at our streaming services were primarily due to an increase in subscriber-based license fees.

The increase in other operating expenses was primarily due to higher technology and distribution costs.

Selling, general, administrative and other

Selling, general, administrative and other costs increased $332 million to $2,626 million from $2,294 million due to higher marketing costs at theatrical distribution and our streaming services.

Higher theatrical marketing costs were due to more significant releases in the current quarter.

Depreciation and amortization

Equity in the loss of investees

Operating Income (Loss)

$ (21) $ 254 nm

Revenues - TV/VOD and home entertainment distribution

The increase in TV/VOD and home entertainment distribution revenue was due to the timing of revenue recognized on TV/VOD episodic content sales and an increase in home entertainment distribution revenue.

Revenues - Theatrical distribution

Higher theatrical distribution revenue was attributable to more titles in release in the current quarter compared to the prior-year quarter.

The current quarter included the release of Lilo & Stitch , Thunderbolts*, The Amateur and Elio , and the ongoing performance of Snow White.

The prior-year quarter included the release of Inside Out 2 and Kingdom of the Planet of the Apes .

Operating expenses

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

Programming and production costs $ (1,283) $ (1,017) (26) %

Other operating expenses (178) (187) 5 %

$ (1,461) $ (1,204) (21) %

The increase in programming and production costs was due to higher production cost amortization attributable to increased distribution revenue and higher film cost impairments.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Selling, general, administrative and other

Selling, general, administrative and other costs increased $174 million, to $736 million from $562 million, due to higher theatrical marketing costs reflecting more significant releases in the current quarter.

Operating Income (Loss) from Content Sales/Licensing and Other

Operating results from Content Sales/Licensing and Other decreased $275 million, to a loss of $21 million from income of $254 million due to lower theatrical distribution results and higher film cost impairments.

Depreciation and amortization increased $40 million to $218 million from $178 million due to new technology and facilities assets placed in service.

Operating Income from Entertainment

Segment operating income decreased $603 million to $1,100 million from $1,703 million due to lower theatrical distribution results.

Items Excluded from Segment Operating Income Related to Entertainment

1 unchanged sentence

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

TFCF and Hulu Acquisition Amortization (1)

(in millions) December 27,

2025 December 28,

Acquisition Amortization (1)

$ (298) $ (321) 7 %

Restructuring and impairment charges (2)

(1) In the current quarter, amortization of intangible assets was $234 million and amortization of step-up on film and television costs was $64 million.

In the prior-year quarter, amortization of intangible assets was $251 million and amortization of step-up on film and television costs was $67 million.

(2) Charges in the current quarter were primarily for an impairment of an equity investment.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Operating results for Sports are as follows:

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

Affiliate fees $ 2,484 $ 2,571 (3) %

(in millions) December 27,

2025 December 28,

Subscription and affiliate fees $ 2,983 $ 3,057 (2) %

Advertising 1,477 1,342 10 %

Subscription fees 415 414 — %

Other 449 451 — %

6 unchanged sentences

$ 191 $ 247 (23) %

Revenues - Affiliate fees

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

Domestic $ 2,214 $ 2,239 (1) %

International 270 272 (1) %

2,484 2,511 (1) %

$ 2,484 $ 2,571 (3) %

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Domestic ESPN affiliate revenue reflected a decrease of 8% from fewer subscribers, largely offset by an increase of 7% from higher effective rates.

International ESPN affiliate revenue reflected an unfavorable Foreign Exchange Impact and fewer subscribers, largely offset by higher effective rates.

Revenues - Subscription and affiliate fees

Lower subscription and affiliate fees reflected decreases of 4% from fewer subscribers, 3% from the temporary suspension of carriage with an affiliate in the current quarter and 1% from the Star India Transaction, partially offset by an increase of 6% from higher effective rates.

Revenues - Advertising

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

Domestic $ 1,104 $ 1,071 3 %

International 44 51 (14) %

1,148 1,122 2 %

— 217 (100) %

$ 1,148 $ 1,339 (14) %

Domestic ESPN advertising revenue growth was due to an increase of 14% from higher rates, partially offset by a decrease of 9% from lower average viewership.

Revenues - Subscription fees

Subscription fees were comparable to the prior-year quarter as an increase of 5% from higher effective rates was largely offset by a decrease of 4% from fewer subscribers.

Revenues - Other

Other revenue increased $27 million, to $261 million from $234 million, primarily due to higher fees received from the Entertainment segment to program sports content on ABC, partially offset by lower Ultimate Fighting Championship pay-per-view fees attributable to lower average buys.

Key metrics (1)

% Change Better (Worse)

June 28, 2025 March 29, 2025 June 29, 2024 June 28, 2025 vs.

29, 2025 June 28, 2025 vs.

June 29, 2024

Paid subscribers (1) at (in millions)

24.1 24.1 24.9 — % (3) %

Average Monthly Revenue per Paid Subscriber (1) for the quarter ended

$ 6.40 $ 6.58 $ 6.23 (3) % 3 %

(1) See discussion on page 71 and 72 — DTC Product Descriptions, Key Definitions and Supplemental Information and Planned Reporting Changes

Average Monthly Revenue Per Paid Subscriber - Third Quarter of Fiscal 2025 Comparison to Second Quarter of Fiscal 2025

ESPN+ average monthly revenue per paid subscriber decreased from $6.58 to $6.40 due to lower advertising revenue.

Average Monthly Revenue Per Paid Subscriber -Third Quarter of Fiscal 2025 Comparison to Third Quarter of Fiscal 2024

ESPN+ average monthly revenue per paid subscriber increased from $6.23 to $6.40 due to increases in pricing, partially offset by the impact of subscriber mix shifts.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Advertising revenue growth was primarily due to an increase of 8% from higher rates.

Operating expenses

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

(in millions) December 27,

2025 December 28,

Programming and production costs $ (4,132) $ (4,043) (2) %

Domestic $ (2,451) $ (2,381) (3) %

International (311) (308) (1) %

(2,762) (2,689) (3) %

Star India — (555) 100 %

(2,762) (3,244) 15 %

Other operating expenses (257) (250) (3) %

$ (4,389) $ (4,293) (2) %

Domestic ESPN programming and production costs increased in the current quarter compared to the prior-year quarter primarily due to higher NBA and college sports rights costs, reflecting contractual rate increases, partially offset by the absence of NHL Stanley Cup Finals rights in the current quarter.

We have the rights to air the Stanley Cup Finals every other year.

Selling, general, administrative and other

Selling, general, administrative and other costs decreased $17 million, to $276 million from $293 million, due to the Star India Transaction.

Programming and production costs increased in the current quarter compared to the prior-year quarter driven by contractual rate increases and costs for new sports rights, partially offset by the timing of NBA and college sports rights costs under new agreements, including the impact of fewer regular season NBA games.

Depreciation and amortization

Depreciation and amortization increased $14 million, to $24 million from $10 million, due to new technology assets placed in service.

Operating Income from Sports

Segment operating income increased $235 million, to $1,037 million from $802 million, due to the Star India Transaction, partially offset by a decrease at domestic ESPN.

Supplemental revenue and operating income (loss)

The following table provides supplemental revenue and operating income (loss) detail for the Sports segment:

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

Supplemental revenue detail

Domestic $ 3,929 $ 3,908 1 %

International 379 371 2 %

4,308 4,279 1 %

Star India — 279 (100) %

$ 4,308 $ 4,558 (5) %

Supplemental operating income (loss) detail

Domestic $ 1,014 $ 1,085 (7) %

International (3) 5 nm

1,011 1,090 (7) %

— (314) 100 %

Equity in the income of investees 26 26 — %

$ 1,037 $ 802 29 %

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Segment operating income decreased $56 million, to $191 million from $247 million, driven by an increase in programming and production costs and a decrease in subscription and affiliate fees, partially offset by higher advertising revenue.

Items Excluded from Segment Operating Income Related to Sports

1 unchanged sentence

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

TFCF Acquisition Amortization (1)

(in millions) December 27,

2025 December 28,

Acquisition Amortization (1)

$ — $ (74) 100 %

(1) Represents amortization of intangible assets.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Operating results for the Experiences segment are as follows:

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

(in millions) December 27,

2025 December 28,

Theme park admissions $ 3,301 $ 3,087 7 %

9 unchanged sentences

Revenues - Theme park admissions

Theme park admissions revenue growth was due to an increase of 7% from higher average per capita ticket revenue.

Theme park admissions revenue growth was due to increases of 4% from higher average per capita ticket revenue and 2% from increased attendance at our international and domestic parks.

Attendance growth at our domestic parks benefited from the comparison to the adverse impact of Hurricane Milton in the prior-year quarter.

Revenues - Resorts and vacations

Higher resorts and vacations revenue was attributable to increases of 7% from additional passenger cruise days and 3% from higher occupied hotel room nights.

The increase in passenger cruise days reflected the launch of the Disney Treasure in the first quarter of the current year.

Higher resorts and vacations revenue was primarily attributable to an increase of 6% from additional passenger cruise days, reflecting the launches of the Disney Treasure in December 2024 and the Disney Destiny in November 2025.

Revenues - Park & Experiences merchandise, food and beverage

Parks & Experiences merchandise, food and beverage revenue growth was primarily due to increases of 3% from higher average guest spending and 2% from volume growth.

Revenues - Merchandise licensing and retail

Higher merchandise licensing and retail revenue was due to an increase of 3% from merchandise licensing, partially offset by a decrease of 1% from an unfavorable Foreign Exchange Impact.

Revenues - Parks licensing and other

Parks licensing and other revenue growth includes the benefit of a rebate received in the current quarter and an increase in co-branding revenue, partially offset by an unfavorable Foreign Exchange Impact.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

In addition to revenue, costs and operating income, management uses the following key metrics to analyze trends and evaluate the overall performance of our theme parks and resorts, and we believe these metrics are useful to investors in analyzing the business:

1 unchanged sentence

Quarter Ended Quarter Ended

2025 June 29,

2024 June 28,

2025 June 29,

2025 December 28,

2024 December 27,

2025 December 28,

Increase (decrease)

13 unchanged sentences

Our attendance count includes complimentary entries but excludes entries by children under the age of three.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

(3) Per capita guest spending is used to analyze guest spending trends and is defined as total revenue from ticket sales and sales of food, beverage and merchandise in our theme parks, divided by total theme park attendance.

5 unchanged sentences

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

(in millions) December 27,

2025 December 28,

Operating labor $ (2,285) $ (2,164) (6) %

3 unchanged sentences

$ (4,976) $ (4,678) (6) %

Higher operating labor was due to inflation, increased volumes and new guest offerings.

The increase in infrastructure costs was attributable to higher operations support costs and an increase in technology spending.

Higher other operating expense was due to new guest offerings and volume growth.

Selling, general, administrative and other

Selling, general, administrative and other costs increased $109 million, to $1,051 million from $942 million, driven by higher marketing costs.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Higher operating labor was due to inflation, an unfavorable foreign exchange impact, new guest offerings and increased operations support.

The increase in infrastructure costs was primarily due to new guest offerings.

Higher cost of goods sold and distribution costs were primarily attributable to volume growth, partially offset by lower third-party royalty expense.

The increase in other operating expense was primarily due to new guest offerings, volume growth and increased operations support costs.

Depreciation and amortization

Depreciation and amortization increased $62 million, to $711 million from $649 million, primarily attributable to higher depreciation at our domestic parks and experiences driven by an increase at Disney Cruise Line.

Depreciation and amortization increased $80 million, to $759 million from $679 million, due to higher depreciation at our domestic parks and experiences driven by an increase at Disney Cruise Line.

Operating Income from Experiences

3 unchanged sentences

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

(in millions) December 27,

2025 December 28,

Supplemental revenue detail

10 unchanged sentences

$ 3,309 $ 3,110 6 %

Items Excluded from Segment Operating Income Related to Experiences

The following table presents supplemental information for items related to the Experiences segment that are excluded from segment operating income:

Quarter Ended % Change

(in millions) June 28,

2025 June 29,

TFCF Acquisition Amortization

$ (1) $ (1) — %

Charge related to a legal ruling

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

BUSINESS SEGMENT RESULTS - Current Period Nine-Month Results Compared to the Prior-Year Nine-Month Period

Entertainment

Revenue and operating results for the Entertainment segment are as follows:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Linear Networks $ 7,306 $ 8,231 (11) %

Direct-to-Consumer 18,366 16,993 8 %

Content Sales/Licensing and Other 6,586 5,133 28 %

$ 32,258 $ 30,357 6 %

Segment operating income (loss):

Linear Networks $ 2,564 $ 2,954 (13) %

Direct-to-Consumer 975 (110) nm

Content Sales/Licensing and Other 444 12 >100 %

$ 3,983 $ 2,856 39 %

The increase in Entertainment revenues in the current period compared to the prior-year period was due to DTC subscription revenue growth and higher distribution revenues at Content Sales/Licensing and Other.

These increases were partially offset by lower advertising and affiliate revenue due to the Star India Transaction.

Operating income

The increase in Entertainment operating income in the current period compared to the prior-year period was due to improved results at Direct-to-Consumer and, to a lesser extent, Content Sales/Licensing and Other, partially offset by a decline at Linear Networks primarily due to the Star India Transaction.

Linear Networks

Operating results for Linear Networks are as follows:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Affiliate fees $ 4,848 $ 5,251 (8) %

Advertising 2,328 2,875 (19) %

Other 130 105 24 %

Total revenues 7,306 8,231 (11) %

Operating expenses (3,404) (3,838) 11 %

Selling, general, administrative and other (1,637) (1,845) 11 %

Depreciation and amortization (51) (34) (50) %

Equity in the income of investees 350 440 (20) %

Operating Income $ 2,564 $ 2,954 (13) %

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Revenues - Affiliate fees

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

$ 4,377 $ 4,437 (1) %

International

471 814 (42) %

$ 4,848 $ 5,251 (8) %

The decrease in domestic affiliate revenue was due to a decline of 9% from fewer subscribers, partially offset by an increase of 7% from higher effective rates.

Lower international affiliate revenue was attributable to decreases of 28% from the Star India Transaction, 8% from lower effective rates and 3% from fewer subscribers.

Revenues - Advertising

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

$ 1,989 $ 2,121 (6) %

International

339 754 (55) %

$ 2,328 $ 2,875 (19) %

The decline in domestic advertising revenue was due to a decrease of 7% from fewer impressions attributable to lower average viewership.

Lower international advertising revenue reflected a decrease of 51% from the Star India Transaction.

Operating expenses

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Programming and production costs

$ (2,576) $ (2,619) 2 %

International

(319) (534) 40 %

Total programming and production costs

(2,895) (3,153) 8 %

Other operating expenses

(509) (685) 26 %

$ (3,404) $ (3,838) 11 %

The decrease in domestic programming and production costs was due to lower average cost programming at our cable channels, partially offset by a higher cost mix of programming at ABC driven by higher fees paid to the Sports segment to program sports content.

International programming and production costs decreased primarily due to the Star India Transaction.

The decrease in other operating expenses was driven by lower technology costs and a decrease from the Star India Transaction.

Selling, general, administrative and other

Selling, general, administrative and other costs decreased $208 million to $1,637 million from $1,845 million, due to the Star India Transaction, lower marketing costs and a favorable Foreign Exchange Impact.

Equity in the Income of Investees

Income from equity investees decreased $90 million, to $350 million from $440 million, due to lower income from A+E attributable to decreases in affiliate and advertising revenue.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Operating Income from Linear Networks

Operating income from Linear Networks decreased $390 million, to $2,564 million from $2,954 million, due to a decrease at our international business as a result of the Star India Transaction and lower income from equity investees.

Supplemental revenue and operating income

The following table provides supplemental revenue and operating income detail for Linear Networks:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Supplemental revenue detail

Domestic $ 6,453 $ 6,624 (3) %

International 853 1,607 (47) %

$ 7,306 $ 8,231 (11) %

Supplemental operating income detail

Domestic $ 2,049 $ 2,040 — %

International 165 474 (65) %

Equity in the income of investees 350 440 (20) %

$ 2,564 $ 2,954 (13) %

Direct-to-Consumer

Operating results for Direct-to-Consumer are as follows:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Subscription fees $ 15,495 $ 14,041 10 %

Advertising 2,712 2,740 (1) %

159 212 (25) %

Total revenues 18,366 16,993 8 %

Operating expenses (13,726) (13,449) (2) %

Selling, general, administrative and other (3,403) (3,424) 1 %

Depreciation and amortization (262) (230) (14) %

Operating Income (Loss)

$ 975 $ (110) nm

Revenues - Subscription fees

Growth in subscription fees reflected increases of 9% from higher effective rates attributable to increases in pricing and 4% from more subscribers, partially offset by decreases of 2% from an unfavorable Foreign Exchange Impact and 1% from the Star India Transaction.

Revenues - Advertising

Lower advertising revenue was attributable to decreases of 12% from lower rates and 9% from the Star India Transaction, partially offset by an increase of 19% from higher impressions.

The decrease from the Star India Transaction reflected ICC programming on Disney+ Hotstar in the prior-year period.

Revenues - Other

The decrease in other revenue was due to lower recognition of minimum guarantee shortfalls from wholesale distributors.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Average Monthly Revenue Per Paid Subscriber:

Nine Months Ended % Change

2025 June 29,

Domestic (U.S.

and Canada) $ 8.05 $ 7.96 1 %

International (1)

7.46 6.23 20 %

7.73 6.98 11 %

SVOD Only 12.42 12.29 1 %

Live TV + SVOD 99.80 94.89 5 %

(1) The prior-year period Average Monthly Revenue per Paid Subscriber has been adjusted to include Disney+ subscribers in Southeast Asia.

These subscribers were previously reported with Disney+ Hotstar, which is no longer presented as this business was included in the Star India Transaction.

Domestic Disney+ average monthly revenue per paid subscriber increased from $7.96 to $8.05 due to increases in pricing, partially offset by the impact of subscriber mix shifts.

International Disney+ average monthly revenue per paid subscriber increased from $6.23 to $7.46 due to increases in pricing, partially offset by the impact of subscriber mix shifts.

Hulu SVOD Only average monthly revenue per paid subscriber increased from $12.29 to $12.42 due to increases in pricing, partially offset by lower advertising revenue.

Hulu Live TV + SVOD average monthly revenue per paid subscriber increased from $94.89 to $99.80 due to increases in pricing, partially offset by lower advertising revenue.

Operating expenses

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Programming and production costs

Hulu $ (6,759) $ (6,437) (5) %

Disney+ (3,968) (4,275) 7 %

Total programming and production costs (10,727) (10,712) — %

Other operating expense (2,999) (2,737) (10) %

$ (13,726) $ (13,449) (2) %

The increase in programming and production costs at Hulu was due to higher subscriber-based license fees attributable to rate increases for programming the Hulu Live TV service and more subscribers to bundles with third-party offerings.

The decrease in programming and production costs at Disney+ was primarily due to the Star India Transaction, reflecting the comparison to ICC programming in the prior-year period, partially offset by more hours of content available on the service.

Other operating expenses increased due to higher technology and distribution costs.

Operating Income (Loss) from Direct-to-Consumer

Operating results from Direct-to-Consumer improved $1,085 million, to income of $975 million from a loss of $110 million, due to increases at Disney+ and, to a lesser extent, Hulu.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Content Sales/Licensing and Other

Operating results for Content Sales/Licensing and Other are as follows:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

TV/VOD and home entertainment distribution

$ 2,727 $ 2,196 24 %

Theatrical distribution 2,108 1,098 92 %

Other 1,751 1,839 (5) %

Total revenues 6,586 5,133 28 %

Operating expenses (3,835) (3,305) (16) %

Selling, general, administrative and other (2,035) (1,529) (33) %

Depreciation and amortization (266) (279) 5 %

Equity in the loss of investees

Operating Income

$ 444 $ 12 >100 %

Revenues - TV/VOD and home entertainment distribution

The increase in TV/VOD and home entertainment distribution revenue was primarily due to higher TV/VOD sales of episodic content and an increase in home entertainment distribution revenue.

Revenues - Theatrical distribution

The increase in theatrical distribution revenue was due to the comparison of five live-action titles in the current period to two live-action titles in the prior-year period, partially offset by lower revenue from animated titles.

Live-action titles in the current period included Lilo & Stitch , Mufasa:

The Lion King , Captain America:

Brave New World , Thunderbolts* and Snow White .

Live-action titles in the prior-year period included Kingdom of the Planet of the Apes and The Marvels .

Animated titles in the current period included Moana 2 and Elio compared to Inside Out 2 and Wish in the prior-year period.

Revenues - Other

Other revenue decreased $88 million to $1,751 million from $1,839 million due to lower revenue from stage plays as a result of fewer performances.

Operating expenses

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Programming and production costs $ (3,316) $ (2,769) (20) %

Other operating expenses (519) (536) 3 %

$ (3,835) $ (3,305) (16) %

The increase in programming and production costs was due to higher production cost amortization attributable to the increases in distribution revenues, partially offset by fewer stage play performances.

Selling, general, administrative and other

Selling, general, administrative and other costs increased $506 million, to $2,035 million from $1,529 million, due to higher theatrical marketing costs.

Operating Income from Content Sales/Licensing and Other

Operating income from Content Sales/Licensing and Other increased $432 million, from $12 million to $444 million, due to higher theatrical, TV/VOD and home entertainment distribution results.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Items Excluded from Segment Operating Income Related to Entertainment

The following table presents supplemental information for items related to the Entertainment segment that are excluded from segment operating income:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

TFCF and Hulu Acquisition Amortization (1)

$ (961) $ (1,018) 6 %

Restructuring and impairment charges (2)

(294) (717) 59 %

(1) In the current period, amortization of intangible assets was $753 million and amortization of step-up on film and television costs was $199 million.

In the prior-year period, amortization of intangible assets was $804 million and amortization of step-up on film and television costs was $205 million.

(2) Charges in the current period were primarily for an impairment of an equity investment and content impairments .

Charges in the prior-year period were primarily for a goodwill impairment related to linear networks.

Operating results for Sports are as follows:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Affiliate fees $ 7,766 $ 7,918 (2) %

Advertising 3,647 3,640 — %

Subscription fees 1,270 1,246 2 %

Other 1,009 901 12 %

Total revenues 13,692 13,705 — %

Operating expenses (10,808) (11,295) 4 %

Selling, general, administrative and other (933) (949) 2 %

Depreciation and amortization (34) (29) (17) %

Equity in the income of investees 54 45 20 %

Operating Income $ 1,971 $ 1,477 33 %

Revenues - Affiliate fees

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Domestic $ 6,951 $ 6,947 — %

International 784 783 — %

7,735 7,730 — %

Star India 31 188 (84) %

$ 7,766 $ 7,918 (2) %

Domestic ESPN affiliate revenue was comparable to the prior-year period as an increase of 7% from higher effective rates was offset by a decrease of 7% from fewer subscribers.

International ESPN affiliate revenue was comparable to the prior-year period as higher effective rates were offset by an unfavorable Foreign Exchange Impact and fewer subscribers.

The decrease in Star India affiliate revenue was due to the Star India Transaction.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Revenues - Advertising

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Domestic $ 3,513 $ 3,059 15 %

International 130 143 (9) %

3,643 3,202 14 %

Star India 4 438 (99) %

$ 3,647 $ 3,640 — %

The increase in domestic ESPN advertising revenue was due to an increase of 14% from higher rates.

The increase in advertising revenue reflected the benefit of expanded college football programming including four additional College Football Playoff (CFP) games.

The decrease in Star India advertising revenue was attributable to the comparison to ICC and Indian Premier League (IPL) cricket programming in the prior-year period.

There were no significant cricket events in the current period prior to the Star India Transaction.

Revenues - Subscription fees

The increase in subscription fees was due to an increase of 5% from higher effective rates, partially offset by a decrease of 3% from fewer subscribers.

Revenues - Other

Other revenue increased $108 million, to $1,009 million from $901 million, due to higher fees received from the Entertainment segment to program certain sports content on Disney+ and ABC, partially offset by lower sub-licensing fees.

The decrease in sub-licensing fees was attributable to the comparison to Star India sub-licensing of ICC programming in the prior-year period, partially offset by fees from sub-licensing CFP programming rights for two games in the current period.

Nine Months Ended % Change

2025 June 29,

Average Monthly Revenue per Paid Subscriber for the period $ 6.44 $ 6.21 4 %

ESPN+ average monthly revenue per paid subscriber increased from $6.21 to $6.44 due to increases in pricing, partially offset by the impact of subscriber mix shifts.

Operating expenses

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Programming and production costs

Domestic $ (9,143) $ (8,386) (9) %

International (912) (874) (4) %

(10,055) (9,260) (9) %

Star India (17) (1,341) 99 %

(10,072) (10,601) 5 %

Other operating expenses (736) (694) (6) %

$ (10,808) $ (11,295) 4 %

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Domestic ESPN programming and production costs increased primarily due to expanded college football programming rights, one additional NFL game due to timing and higher NBA rights costs reflecting contractual rate increases.

The increase in international ESPN programming and production costs was attributable to higher soccer rights costs.

Star India programming and production costs decreased due to the comparison to ICC and IPL cricket programming in the prior-year period.

The increase in other operating expense was attributable to higher technology costs.

Selling, general, administrative and other

Selling, general, administrative and other costs decreased due to the Star India Transaction, partially offset by the write-off of an investment.

Operating Income from Sports

Segment operating income increased $494 million, to $1,971 million from $1,477 million, due to the comparison to ICC and IPL cricket programming in the prior-year period at Star India, partially offset by a decrease at domestic ESPN.

Supplemental revenue and operating income

The following table provides supplemental revenue and operating income (loss) detail for the Sports segment:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Supplemental revenue detail

Domestic $ 12,506 $ 11,847 6 %

International 1,147 1,075 7 %

13,653 12,922 6 %

Star India 39 783 (95) %

$ 13,692 $ 13,705 — %

Supplemental operating income (loss) detail

Domestic $ 1,893 $ 2,120 (11) %

International 15 (32) nm

1,908 2,088 (9) %

Star India 9 (656) nm

Equity in the income of investees 54 45 20 %

$ 1,971 $ 1,477 33 %

Items Excluded from Segment Operating Income Related to Sports

The following table presents supplemental information for items related to the Sports segment that are excluded from segment operating income:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

TFCF Acquisition Amortization (1)

$ (222) $ (259) 14 %

(1) Represents amortization of intangible assets.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Operating results for the Experiences segment are as follows:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Theme park admissions $ 9,002 $ 8,568 5 %

Resorts and vacations 6,953 6,334 10 %

Parks & Experiences merchandise, food and beverage 6,425 6,126 5 %

Merchandise licensing and retail 3,234 3,184 2 %

Parks licensing and other 1,776 1,699 5 %

Total revenues 27,390 25,911 6 %

Operating expenses (14,155) (13,562) (4) %

Selling, general, administrative and other (3,023) (2,830) (7) %

Depreciation and amortization (2,095) (1,906) (10) %

Operating Income $ 8,117 $ 7,613 7 %

Revenues - Theme park admissions

Theme park admissions revenue growth was due to an increase of 5% from higher average per capita ticket revenue.

Revenues - Resorts and vacations

Higher resorts and vacations revenue was primarily due to increases of 4% from additional passenger cruise days, 2% from an increase in occupied hotel room nights, 1% from higher unit sales at Disney Vacation Club and 1% from an increase in average daily hotel room rates.

The increase in passenger cruise days reflected the launch of the Disney Treasure in the first quarter of the current year.

Revenues - Park & Experiences merchandise, food and beverage

Parks & Experiences merchandise, food and beverage revenue growth was attributable to increases of 3% from higher average guest spending and 1% from volume growth.

Revenues - Merchandise licensing and retail

Higher merchandise licensing and retail revenue was due to increases of 2% from merchandise licensing and 1% from retail, partially offset by a decrease of 2% from an unfavorable Foreign Exchange Impact.

Revenues - Parks licensing and other

The increase in parks licensing and other revenue was due to the benefit of a rebate received in the current period, an increase in royalties from Tokyo Disney Resort, higher real estate sales and increases in co-branding and sponsorship revenue, partially offset by an unfavorable Foreign Exchange Impact.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Domestic International

Nine Months Ended Nine Months Ended

2025 June 29,

2024 June 28,

2025 June 29,

Increase (decrease)

Attendance — % 1 % — % 15 %

Per Capita Guest Spending 5 % 3 % — % 7 %

Occupancy 88 % 86 % 87 % 83 %

Available Hotel Room Nights (in thousands) 7,653 7,640 2,376 2,381

Change in Per Room Guest Spending 4 % 3 % 5 % 8 %

Operating expenses

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Operating labor $ (6,661) $ (6,222) (7) %

Infrastructure costs (2,527) (2,432) (4) %

Cost of goods sold and distribution costs (2,431) (2,482) 2 %

Other operating expense (2,536) (2,426) (5) %

$ (14,155) $ (13,562) (4) %

The increase in operating labor was due to inflation and, to a lesser extent, new guest offerings and higher volumes.

Higher infrastructure costs were attributable to an increase in technology spending, new guest offerings and higher operations support costs, partially offset by cost management initiatives.

Lower cost of goods sold and distribution costs were driven by a decrease in operations support costs and cost management initiatives, partially offset by higher volumes.

Other operating expense increased primarily due to new guest offerings, higher volumes and increased operations support costs, partially offset by cost management initiatives.

Selling, general, administrative and other

Selling, general, administrative and other costs increased $193 million, to $3,023 million from $2,830 million, primarily due to higher marketing costs.

Depreciation and amortization

Depreciation and amortization increased $189 million, to $2,095 million from $1,906 million, due to higher depreciation at our domestic parks and experiences driven by an increase at Disney Cruise Line.

Operating Income from Experiences

Segment operating income increased $504 million from $7,613 million to $8,117 million due to growth at domestic parks and experiences.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Supplemental revenue and operating income

The following table presents supplemental revenue and operating income detail for the Experiences segment:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Supplemental revenue detail

Parks & Experiences

Domestic $ 19,334 $ 18,075 7 %

International 4,778 4,600 4 %

Consumer Products 3,278 3,236 1 %

$ 27,390 $ 25,911 6 %

Supplemental operating income detail

Parks & Experiences

Domestic $ 5,455 $ 5,031 8 %

International 1,067 1,055 1 %

Consumer Products 1,595 1,527 4 %

$ 8,117 $ 7,613 7 %

Items Excluded from Segment Operating Income Related to Experiences

The following table presents supplemental information for items related to the Experiences segment that are excluded from segment operating income:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

TFCF Acquisition Amortization $ (5) $ (5) — %

Charge related to a legal ruling — (65) 100 %

CORPORATE AND UNALLOCATED SHARED EXPENSES

Quarter Ended % Change

(Worse) Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

2024 June 28,

2025 June 29,

(in millions) December 27,

2025 December 28,

Corporate and unallocated shared expenses $ (304) $ (460) 34 %

Corporate and unallocated shared expenses increased $82 million for the quarter, from $328 million to $410 million, primarily due to a legal settlement, timing of allocations to the segments and higher compensation costs, partially offset by a gain on a land sale.

Corporate and unallocated shared expenses for the nine-month period increased $238 million, from $1,027 million to $1,265 million, primarily due to legal settlements, higher compensation and human resource-related costs and timing of allocations to the segments, partially offset by a gain on a land sale.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Corporate and unallocated shared expenses decreased $156 million for the quarter, from $460 million to $304 million, primarily due to the comparison to a legal settlement in the prior-year quarter.

FINANCIAL CONDITION

The change in cash and cash equivalents is as follows:

Nine Months Ended % Change

(in millions) June 28,

2025 June 29,

Quarter Ended % Change

(in millions) December 27,

2025 December 28,

Cash provided by operations $ 735 $ 3,205 (77) %

Cash used in investing activities (2,737) (2,575) (6) %

Cash used in financing activities (8,090) (11,722) 31 %

Cash provided by (used in) financing activities 1,984 (997) nm

Impact of exchange rates on cash, cash equivalents and restricted cash 5 (153) nm

1 unchanged sentence

Operating Activities

Cash provided by operations increased $5.2 billion from $8.5 billion in the prior-year period to $13.6 billion for the current period.

The increase was due to lower tax payments in the current period compared to the prior-year period and higher operating cash flows at Entertainment and, to a lesser extent, Experiences.

Tax payments in the prior-year period reflected the payment of fiscal 2023 U.S.

federal and California state income taxes that had been deferred pursuant to relief related to 2023 winter storms in California.

In addition, fiscal 2025 U.S.

federal and California state income tax payments have been deferred until October 2025 pursuant to relief related to the 2025 wildfires in California.

The increase in operating cash flows at Entertainment was primarily due to higher cash receipts primarily attributable to higher revenue and, to a lesser extent, lower spending on content including the impact of the Star India Transaction, partially offset by higher operating cash disbursements primarily due to higher operating expenses.

The increase in operating cash flows at Experiences was due to higher cash receipts attributable to higher revenue, partially offset by higher operating cash disbursements due to higher operating expenses.

Cash provided by operations decreased from $3.2 billion in the prior-year quarter to $0.7 billion for the current quarter due to higher tax payments and, to a lesser extent, an increase in spending on content at Entertainment and Sports.

The current quarter included payment of U.S.

federal and California state income tax liabilities for fiscal 2025 and a portion of fiscal 2024, pursuant to relief related to 2025 wildfires in California.

Produced and licensed programming costs

6 unchanged sentences

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

The Company’s film and television production and programming activity for the nine months ended June 28, 2025 and June 29, 2024 are as follows:

Nine Months Ended

(in millions) June 28,

2025 June 29,

The Company’s film and television production and programming activity for the quarter ended December 27, 2025 and December 28, 2024 are as follows:

Quarter Ended

(in millions) December 27,

2025 December 28,

Beginning balances:

4 unchanged sentences

Produced film and television content 2,822 2,534

17,608 17,957

Amortization:

3 unchanged sentences

Change in produced and licensed content costs (1,153) (1,141)

Content Impairment (see Note 16 to the Condensed Consolidated Financial Statements)

Produced and licensed content costs contributed to joint venture

Other non-cash activity (93) 266

3 unchanged sentences

$ 28,791 $ 29,842

The Company currently expects its fiscal 2025 spend on produced and licensed content, including sports rights, to be comparable to fiscal 2024 spend of $23 billion.

The Company currently expects its fiscal 2026 spend on produced and licensed content, including sports rights, to be approximately $24 billion.

Investing Activities

Investing activities consist principally of investments in parks, resorts and other property and acquisition and divestiture activity.

The Company’s investing activities for the nine months ended June 28, 2025 and June 29, 2024 are as follows:

Nine Months Ended

(provided by (used in) in millions)

2025 June 29,

The Company’s investing activities for the quarter ended December 27, 2025 and December 28, 2024 are as follows:

Quarter Ended

(in millions)

2025 December 28,

Investments in parks, resorts and other property:

14 unchanged sentences

Capital expenditures at the Experiences segment are principally for theme park and resort expansion, new attractions, cruise ships, capital improvements and technology.

The increase in the current period compared to the prior-year period was due to higher spend on cruise ship fleet expansion.

The increase in the current period compared to the prior-year period was due to higher spend on cruise ship fleet expansion and, to a lesser extent, new theme park attractions.

Capital expenditures at Corporate primarily reflect investments in corporate facilities, technology and equipment.

1 unchanged sentence

The Company currently expects its fiscal 2026 capital expenditures to be approximately $9 billion compared to fiscal 2025 capital expenditures of $8 billion.

Other Investing Activities

Other investing activities in the prior-year period reflected an investment in Epic Games.

The projected increase in capital expenditures is primarily due to higher spending at Experiences, attributable to theme park and resort expansion and new attractions, partially offset by lower spending on cruise ship fleet expansion.

to theme park and resort expansion and new attractions

Financing Activities

Financing activities for the nine months ended June 28, 2025 and June 29, 2024 are as follows:

Nine Months Ended

(provided by (used in) in millions)

2025 June 29,

Financing activities for the quarter ended December 27, 2025 and December 28, 2024 are as follows:

Quarter Ended

(in millions)

2025 December 28,

Change in borrowings

2 unchanged sentences

(2,034) (794)

Acquisition of redeemable noncontrolling interest

(439) (8,610)

Other financing activities, net (1)

Cash used in financing activities

Cash provided by (used in) financing activities

$ 1,984 $ (997)

(1) Primarily consists of dividends to noncontrolling interest holders and equity award activity.

See Note 5 to the Condensed Consolidated Financial Statements for a summary of the Company’s borrowing activities during the nine months ended June 28, 2025 and information regarding the Company’s bank facilities.

See Note 5 to the Condensed Consolidated Financial Statements for a summary of the Company’s borrowing activities during the quarter ended December 27, 2025 and information regarding the Company’s bank facilities.

The Company may use cash balances, operating cash flows, commercial paper borrowings up to the amount of its unused $12.25 billion bank facilities and incremental term debt issuances to retire or refinance other borrowings before or as they come due.

See Note 10 to the Condensed Consolidated Financial Statements for a summary of dividends and share repurchases.

The Company is targeting approximately $3 billion in share repurchases in fiscal 2025.

The redeemable noncontrolling interest activity in the current and prior-year period was attributable to the acquisition of NBCU’s interest in Hulu.

In June 2025, the Company paid an incremental amount for Hulu based on a final appraisal of Hulu’s fair value (see Note 4 to the Condensed Consolidated Financial Statements).

The Company is targeting $7 billion in share repurchases in fiscal 2026.

The Company’s operating cash flow and access to the capital markets can be impacted by factors outside of its control.

6 unchanged sentences

The Company’s borrowing costs can also be impacted by short- and long-term debt ratings assigned by nationally recognized rating agencies, which are based, in significant part, on the Company’s performance as measured by certain credit metrics such as leverage and interest coverage ratios.

As of June 28, 2025, Moody’s Ratings’ long- and short-term debt ratings for the Company were A2 and P-1 (Stable), respectively, S&P Global Ratings’ long- and short-term debt ratings for the Company were A and A-1 (Stable), respectively, and Fitch Rating’s long- and short-term debt ratings for the Company were A- and F2 (Stable), respectively.

As of December 27, 2025, Moody’s Ratings’ long- and short-term debt ratings for the Company were A2 and P-1 (Stable), respectively, and S&P Global Ratings’ long- and short-term debt ratings for the Company were A and A-1 (Stable), respectively.

The Company’s bank facilities contain only one financial covenant, relating to interest coverage of three times earnings before interest, taxes, depreciation and amortization, including both intangible amortization and amortization of our film and television production and programming costs.

On June 28, 2025, the Company met this covenant by a significant margin.

On December 27, 2025, the Company met this covenant by a significant margin.

The Company’s bank facilities also specifically exclude certain entities, including the Asia Theme Parks, from any representations, covenants or events of default.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

The Company is exposed to the impact of interest rate changes, foreign currency fluctuations, commodity fluctuations and changes in the market values of its investments.

1 unchanged sentence

In the normal course of business, we employ established policies and procedures to manage the Company’s exposure to changes in interest rates, foreign currencies and commodities using a variety of financial instruments.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Our objectives in managing exposure to interest rate changes are to limit the impact of interest rate volatility on earnings and cash flows and to lower overall borrowing costs.

22 unchanged sentences

As disclosed in Note 12 to the Condensed Consolidated Financial Statements, the Company has exposure for certain legal matters.

See Note 5 to the Condensed Consolidated Financial Statements.

As disclosed in Note 9 to the Consolidated Financial Statements in the 2025 Annual Report on Form 10-K, the Company has exposure for certain tax matters.

1 unchanged sentence

See Note 14 to the Consolidated Financial Statements in the 2025 Annual Report on Form 10-K.

UNCERTAINTIES

The future effects of the evolving macroeconomic, trade and travel conditions, including as a result of evolving international political developments, trade policies and consumer spending dynamics are unknown and, depending on how these conditions develop, could adversely affect demand for and availability of our products and services, increase our costs to provide products and services and have a negative impact on our results of operations.

See also “Risk Factors” in our 2024 Annual Report on Form 10-K and this Quarterly Report on Form 10-Q.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

OTHER MATTERS

Accounting Policies and Estimates

We believe that the application of the following accounting policies, which are important to our financial position and results of operations, require significant judgments and estimates on the part of management.

For a summary of our significant accounting policies, including the accounting policies discussed below, see Note 2 to the Consolidated Financial Statements in the 2024 Annual Report on Form 10-K.

Produced and Acquired/Licensed Content Costs

We amortize and test for impairment of capitalized film and television production costs based on whether the content is predominantly monetized individually or as a group.

See Note 7 to the Condensed Consolidated Financial Statements for further discussion.

Production costs that are classified as individual are amortized based upon the ratio of the current period’s revenues to the estimated remaining total revenues (Ultimate Revenues).

With respect to produced films intended for theatrical release, the most sensitive factor affecting our estimate of Ultimate Revenues is theatrical performance.

Revenues derived from other markets subsequent to the theatrical release are generally highly correlated with theatrical performance.

Theatrical performance varies primarily based upon the public interest and demand for a particular film, the popularity of competing films at the time of release and the level of marketing effort.

Upon a film’s release and determination of the theatrical performance, the Company’s estimates of revenues from succeeding windows and markets, which may include imputed license fees for content that is used on our DTC streaming services, are revised based on historical relationships and an analysis of current market trends.

With respect to capitalized television production costs that are classified as individual, the most sensitive factor affecting estimates of Ultimate Revenues is program ratings of the content on our licensees’ platforms.

Program ratings, which are an indication of market acceptance, directly affect the program’s ability to generate advertising and subscriber revenues and are correlated with the license fees we can charge for the content in subsequent windows and for subsequent seasons.

Ultimate Revenues are reassessed each reporting period and the impact of any changes on amortization of production cost is accounted for as if the change occurred at the beginning of the current fiscal year.

If our estimate of Ultimate Revenues decreases, amortization of costs may be accelerated or result in an impairment.

Conversely, if our estimate of Ultimate Revenues increases, cost amortization may be slowed.

Production costs classified as individual are tested for impairment at the individual title level by comparing that title’s unamortized costs to the present value of discounted cash flows directly attributable to the title.

To the extent the title’s unamortized costs exceed the present value of discounted cash flows, an impairment charge is recorded for the excess.

Produced content costs that are part of a group and acquired/licensed content costs are amortized based on projected usage, typically resulting in an accelerated or straight-line amortization pattern.

The determination of projected usage requires judgment and is reviewed on a regular basis for changes.

Adjustments to projected usage are applied prospectively in the period of the change.

Historical viewing patterns are the most significant input into determining the projected usage, and significant judgment is required in using historical viewing patterns to derive projected usage.

If projected usage changes we may need to accelerate or slow the recognition of amortization expense.

Cost of content that is predominantly monetized as a group is tested for impairment by comparing the present value of the discounted cash flows of the group to the aggregate unamortized costs of the group.

The group is established by identifying the lowest level for which cash flows are independent of the cash flows of other produced and licensed content.

If the unamortized costs exceed the present value of discounted cash flows, an impairment charge is recorded for the excess and allocated to individual titles based on the relative carrying value of each title in the group.

If there are no plans to continue to use an individual film or television program that is part of a group, the unamortized cost of the individual title is written down to its estimated fair value.

Licensed content is included as part of the group within which it is monetized for purposes of impairment testing.

The amortization of multi-year sports rights is based on projections of revenues for each season relative to projections of total revenues over the contract period (estimated relative value).

Projected revenues include advertising revenue and an allocation of affiliate revenue.

If the annual contractual payments related to each season approximate each season’s estimated relative value, we expense the related contractual payments during the applicable season.

If estimated relative values by year were to change significantly, amortization of our sports rights costs may be accelerated or slowed.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Revenue Recognition

The Company has revenue recognition policies for its various operating segments that are appropriate to the circumstances of each business.

Refer to Note 2 to the Consolidated Financial Statements in the 2024 Annual Report on Form 10-K for our revenue recognition policies.

Pension and Postretirement Medical Plan Actuarial Assumptions

The Company’s pension and postretirement medical benefit obligations and related costs are calculated using a number of actuarial assumptions.

Two critical assumptions, the discount rate and the expected return on plan assets, are important elements of expense and/or liability measurement, which we evaluate annually.

See Note 10 to the Consolidated Financial Statements in the 2024 Annual Report on Form 10-K for estimated impacts of changes in these assumptions.

Other assumptions include the healthcare cost trend rate and employee demographic factors such as retirement patterns, mortality, turnover and rate of compensation increase.

The discount rate enables us to state expected future cash payments for benefits as a present value on the measurement date.

A lower discount rate increases the present value of benefit obligations and increases pension and postretirement medical expense.

The guideline for setting this rate is a high-quality long-term corporate bond rate.

The Company’s discount rate was determined by considering yield curves constructed of a large population of high-quality corporate bonds and reflects the matching of the plans’ liability cash flows to the yield curves.

To determine the expected long-term rate of return on the plan assets, we consider the current and expected asset allocation, as well as historical and expected returns on each plan asset class.

A lower expected rate of return on plan assets will increase pension and postretirement medical expense.

Goodwill, Other Intangible Assets, Long-Lived Assets and Investments

The Company is required to test goodwill and other indefinite-lived intangible assets for impairment on an annual basis and if current events or circumstances require, on an interim basis.

The Company performs its annual test of goodwill and indefinite-lived intangible assets for impairment in its fiscal fourth quarter.

Goodwill is allocated to various reporting units, which are an operating segment or one level below the operating segment.

To test goodwill for impairment, the Company first performs a qualitative assessment to determine if it is more likely than not that the carrying amount of a reporting unit exceeds its fair value.

If it is, a quantitative assessment is required.

Alternatively, the Company may bypass the qualitative assessment and perform a quantitative impairment test.

The qualitative assessment requires the consideration of factors such as recent market transactions, macroeconomic conditions and changes in projected future cash flows of the reporting unit.

The quantitative assessment compares the fair value of each reporting unit to its carrying amount, and to the extent the carrying amount exceeds the fair value, an impairment of goodwill is recognized for the excess up to the amount of goodwill allocated to the reporting unit.

The impairment test for goodwill requires judgment related to the identification of reporting units, the determination of whether reporting units should be aggregated, the assignment of assets and liabilities including goodwill to reporting units, and the determination of fair value of the reporting units.

To determine the fair value of our reporting units, we generally use a present value technique (discounted cash flows) corroborated by market multiples when available and as appropriate.

The discounted cash flow analyses are sensitive to our estimated projected future cash flows as well as the discount rates used to calculate their present value.

Our future cash flows are based on internal forecasts for each reporting unit, which consider projected inflation and other economic indicators, as well as industry growth projections.

Discount rates are determined based on the inherent risks of the underlying operations.

Significant judgments and assumptions in the discounted cash flow model used to determine fair value include future revenues and certain operating expenses, operating margins, terminal growth rates and discount rates.

We believe our estimates are consistent with how a marketplace participant would value our businesses.

The majority of the Company’s recorded goodwill is assigned to the entertainment reporting unit (approximately $51 billion).

Based on our annual assessment performed in the fourth quarter of fiscal 2024, the fair value of the entertainment reporting unit exceeded its carrying amount by less than 10%, and an approximate 40 basis point increase in the discount rate or an approximate 6% reduction in projected annual cash flows used to determine the fair value of the entertainment reporting unit would effectively eliminate the excess fair value over carrying amount.

To test other indefinite-lived intangible assets for impairment, the Company first performs a qualitative assessment to determine if it is more likely than not that the carrying amount of each of its indefinite-lived intangible assets exceeds its fair value.

If it is, a quantitative assessment is required.

Alternatively, the Company may bypass the qualitative assessment and perform a quantitative impairment test.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

The qualitative assessment requires the consideration of factors such as recent market transactions, macroeconomic conditions and changes in projected future cash flows.

The quantitative assessment compares the fair value of an indefinite-lived intangible asset to its carrying amount.

If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized for the excess.

Fair values of indefinite-lived intangible assets are determined based on discounted cash flows or appraised values, as appropriate.

The Company tests long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount may not be recoverable.

Once a triggering event has occurred, the impairment test employed is based on whether the Company’s intent is to hold the asset for continued use or to hold the asset for sale.

The impairment test for assets held for use requires a comparison of the estimated undiscounted future cash flows expected to be generated over the useful life of the significant assets of an asset group to the carrying amount of the asset group.

An asset group is generally established by identifying the lowest level of cash flows generated by a group of assets that are largely independent of the cash flows of other assets and could include assets used across multiple businesses.

If the carrying amount of an asset group exceeds the estimated undiscounted future cash flows, an impairment would be measured as the difference between the fair value of the asset group and the carrying amount of the asset group.

For assets held for sale, to the extent the carrying amount is greater than the asset’s fair value less costs to sell, an impairment loss is recognized for the difference.

Determining whether a long-lived asset is impaired requires various estimates and assumptions, including whether a triggering event has occurred, the identification of asset groups, estimates of future cash flows and the discount rate used to determine fair values.

The Company has investments in equity securities, including equity method investments.

For equity securities that do not have a readily determinable fair value, we consider forecasted financial performance of the investee companies, as well as volatility inherent in the external markets for these investments.

If these forecasts are not met, impairment charges may be recorded.

See Note 16 to the Condensed Consolidated Financial Statements for information regarding significant impairment charges recorded in the periods presented.

Allowance for Credit Losses

We evaluate our allowance for credit losses and estimate collectability of accounts receivable based on historical bad debt experience, our assessment of the financial condition of individual companies with which we do business, current market conditions and reasonable and supportable forecasts of future economic conditions.

In times of economic turmoil, such as during the COVID-19 pandemic, our estimates and judgments with respect to the collectability of our receivables are subject to greater uncertainty than in more stable periods.

If our estimate of uncollectible accounts is too low, costs and expenses may increase in future periods, and if it is too high, costs and expenses may decrease in future periods.

See Note 3 to the Condensed Consolidated Financial Statements for additional discussion.

Contingencies and Litigation

We are currently involved in certain legal proceedings and, as required, have accrued estimates of the probable and estimable losses for the resolution of these proceedings.

These estimates are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies and have been developed in consultation with outside counsel as appropriate.

From time to time, we are also involved in other contingent matters for which we accrue estimates for a probable and estimable loss.

It is possible, however, that future results of operations for any particular quarterly or annual period could be materially affected by changes in our assumptions or the effectiveness of our strategies related to legal proceedings or our assumptions regarding other contingent matters.

See Note 13 to the Condensed Consolidated Financial Statements for more detailed information on litigation exposure.

As a matter of course, the Company is regularly audited by federal, state and foreign tax authorities.

From time to time, these audits result in proposed assessments.

Our determinations regarding the recognition of income tax benefits are made in consultation with outside tax and legal counsel, where appropriate, and are based upon the technical merits of our tax positions in consideration of applicable tax statutes and related interpretations and precedents and upon the expected outcome of proceedings (or negotiations) with taxing and legal authorities.

The tax benefits ultimately realized by the Company may differ from those recognized in our future financial statements based on a number of factors, including the Company’s decision to settle rather than litigate a matter, relevant legal precedent related to similar matters and the Company’s success in supporting its filing positions with taxing authorities.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

For a discussion of each of our critical accounting estimates, including information and analysis of estimates and assumptions involved in their application, see “Critical Accounting Policies and Estimates” included in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Annual Report on Form 10-K.

New Accounting Pronouncements

See Note 15 to the Condensed Consolidated Financial Statements for information regarding new accounting pronouncements.

DTC PRODUCT DESCRIPTIONS, KEY DEFINITIONS AND SUPPLEMENTAL INFORMATION

Product Offerings

In the U.S., Disney+, ESPN+ and Hulu SVOD Only are each offered as a standalone service or as part of various multi-product offerings.

Hulu Live TV + SVOD includes Disney+ and ESPN+.

Disney+ is available in more than 150 countries and territories outside the U.S.

Depending on the market, our services can be purchased on our websites or through third-party platforms/apps or are available via wholesale arrangements.

Paid Subscribers

Paid subscribers reflect subscribers for which we recognized subscription revenue.

Certain product offerings provide the option for an extra member to be added to an account (extra member add-on).

These extra members are not counted as paid subscribers.

Subscribers cease to be a paid subscriber as of their effective cancellation date or as a result of a failed payment method.

Subscribers to multi-product offerings in the U.S.

are counted as a paid subscriber for each of the Company's services included in the multi-product offering, and subscribers to Hulu Live TV + SVOD are counted as one paid subscriber for each of the Hulu Live TV + SVOD, Disney+ and ESPN+ services.

Subscribers include those who receive an entitlement to a service through wholesale arrangements, including those for which the service is available to each subscriber of an existing content distribution tier.

When we aggregate the total number of paid subscribers across our DTC streaming services, we refer to them as paid subscriptions.

International Disney+

International Disney+ includes the Disney+ service outside the U.S.

Average Monthly Revenue Per Paid Subscriber

Hulu and ESPN+ average monthly revenue per paid subscriber is calculated based on the average of the monthly average paid subscribers for each month in the period.

The monthly average paid subscribers is calculated as the sum of the beginning of the month and end of the month paid subscriber count, divided by two.

Disney+ average monthly revenue per paid subscriber is calculated using a daily average of paid subscribers for the period.

Revenue includes subscription fees, advertising (excluding revenue earned from selling advertising spots to other Company businesses), premium and feature add-on revenue and extra member add-on revenue but excludes Pay-Per-View revenue.

Advertising revenue generated by content on one DTC streaming service that is accessed through another DTC streaming service by subscribers to both streaming services is allocated between both streaming services.

The average revenue per paid subscriber is net of discounts on offerings that carry more than one service.

Revenue is allocated to each service based on the relative retail or wholesale price of each service on a standalone basis.

Hulu Live TV + SVOD revenue is allocated to the SVOD services based on the wholesale price of the Hulu SVOD Only, Disney+ and ESPN+ multi-product offering.

In general, wholesale arrangements have a lower average monthly revenue per paid subscriber than subscribers that we acquire directly or through third-party platforms.

Supplemental information about paid subscribers:

(in millions) June 28,

2025 March 29,

2025 June 29,

Domestic (U.S.

and Canada) standalone 53.1 54.7 60.6

Domestic (U.S.) multi-product (1)

33.2 31.7 25.3

Domestic (U.S.

and Canada) (3)

86.3 86.4 85.9

International (2)

69.9 68.2 66.0

156.2 154.6 151.9

(1) At June 28, 2025, there were 15.4 million and 17.8 million paid subscribers to two-service and three-service multi-product offerings, respectively.

At March 29, 2025, there were 13.3 million and 18.4 million paid subscribers to two-service and three-service multi-product offerings, respectively.

At June 29, 2024, there were 5.8 million and 19.5 million paid subscribers to two-service and three-service multi-product offerings, respectively.

(2) The prior-year quarter paid subscribers have been adjusted to include Disney+ paid subscribers in Southeast Asia, which were previously reported with Disney+ Hotstar.

Disney+ Hotstar was included in the Star India Transaction.

(3) Total may not equal the sum of the column due to rounding.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

PLANNED REPORTING CHANGES

Since we began reporting the number of paid subscribers and average monthly revenue per paid subscriber, our DTC strategy and the DTC marketplace have evolved.

Given this evolution, we plan to implement changes to our Entertainment and Sports financial disclosures.

Among our planned changes, because we believe quarterly updates on the number of paid subscribers and average monthly revenue per paid subscriber have become less meaningful to evaluating the performance of our businesses, we will no longer report these metrics starting the first quarter of fiscal 2026 for Disney+ and Hulu and the fourth quarter of fiscal 2025 for ESPN+.

We will also consolidate the lines of business in our Entertainment reporting, though will provide information on Entertainment Direct-to-Consumer profitability.

SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

2 unchanged sentences

Legacy Disney and TWDC are collectively referred to as “Obligor Group”, and individually, as a “Guarantor”.

Concurrent with the close of the TFCF acquisition, $16.8 billion of TFCF’s assumed public debt (which then constituted 96% of such debt) was exchanged for senior notes of TWDC (the “exchange notes”) issued pursuant to an exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to an Indenture, dated as of March 20, 2019, between TWDC, Legacy Disney, as guarantor, and Citibank, N.A., as trustee (the “TWDC Indenture”) and guaranteed by Legacy Disney.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

1933, as amended (the “Securities Act”), pursuant to an Indenture, dated as of March 20, 2019, between TWDC, Legacy Disney, as guarantor, and Citibank, N.A., as trustee (the “TWDC Indenture”) and guaranteed by Legacy Disney.

On November 26, 2019, $14.0 billion of the outstanding exchange notes were exchanged for new senior notes of TWDC registered under the Securities Act, issued pursuant to the TWDC Indenture and guaranteed by Legacy Disney.

1 unchanged sentence

Other subsidiaries of the Company do not guarantee the registered debt securities of either TWDC or Legacy Disney (such subsidiaries are referred to as the “non-Guarantors”).

The par value and carrying value of total outstanding and guaranteed registered debt securities of the Obligor Group at June 28, 2025 was as follows:

The par value and carrying value of total outstanding and guaranteed registered debt securities of the Obligor Group at December 27, 2025 was as follows:

TWDC Legacy Disney

7 unchanged sentences

Holders of the guaranteed registered debt securities have a direct claim only against the Obligor Group.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued)

Set forth below is summarized financial information for the Obligor Group on a combined basis after elimination of (i) intercompany transactions and balances between TWDC and Legacy Disney and (ii) equity in the earnings from and investments in any subsidiary that is a non-Guarantor.

This summarized financial information has been prepared and presented pursuant to the Securities and Exchange Commission Regulation S-X Rule 13-01, “Financial Disclosures about Guarantors and Issuers of Guaranteed Securities” and is not intended to present the financial position or results of operations of the Obligor Group in accordance with GAAP.

Results of operations (in millions) Nine Months Ended June 28, 2025

Results of operations (in millions) Quarter Ended December 27, 2025

Costs and expenses —

1 unchanged sentence

Net income (loss) attributable to TWDC shareholders (799)

Balance Sheet (in millions) June 28,

Balance Sheet (in millions) December 27,

2025 September 27,

5 unchanged sentences

Quantitative and Qualitative Disclosures about Market Risk.

See Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Note 15 to the Condensed Consolidated Financial Statements.

See Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, Note 14 to the Condensed Consolidated Financial Statements and in Note 17 to Consolidated Financial Statements in Part II, Item 8 of the 2025 Annual Report on Form 10-K.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis