What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-05-06 compared with 2026-02-02 · 345 added, 148 removed, 705 unchanged (41% of the section changed)

3 unchanged sentences

in millions, except per share data)

Quarter Ended

2025 December 28,

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Services $ 22,684 $ 21,258 $ 45,890 $ 43,306

27 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Quarter Ended

2025 December 28,

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Net income $ 2,465 $ 3,401 $ 4,949 $ 6,045

3 unchanged sentences

Foreign currency translation and other

Other comprehensive income

( 224 ) 54 ( 211 ) 606

Other comprehensive income (loss) ( 42 ) ( 181 ) ( 1 ) 758

Comprehensive income 2,423 3,220 4,948 6,803

2 unchanged sentences

Other comprehensive income (loss) attributable to noncontrolling interests

( 9 ) ( 8 ) ( 36 ) 64

Comprehensive income attributable to Disney $ 2,196 $ 3,086 $ 4,612 $ 6,651

35 unchanged sentences

Preferred stock

Common stock, $0.01 par value, Authorized – 4.6 billion shares, Issued – 1.9 billion shares

Common stock and additional paid-in capital, $0.01 par value, Authorized – 4.6 billion shares, Issued – 1.9 billion shares

62,256 59,814

1 unchanged sentence

Accumulated other comprehensive loss ( 2,951 ) ( 2,914 )

Treasury stock, at cost, 97 million shares at December 27, 2025 and 79 million shares at September 27, 2025

Treasury stock, at cost, 130 million shares at March 28, 2026 and 79 million shares at September 27, 2025

( 12,990 ) ( 7,441 )

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Quarter Ended

2025 December 28,

Six Months Ended

2026 March 29,

OPERATING ACTIVITIES

16 unchanged sentences

Investments in parks, resorts and other property ( 4,986 ) ( 4,328 )

Acquisitions and purchase of investments, net

( 540 ) ( 83 )

Other, net 57 ( 62 )

6 unchanged sentences

Reduction of borrowings ( 3,537 ) ( 2,913 )

Dividends ( 1,337 ) ( 905 )

Repurchases of common stock ( 5,500 ) ( 1,785 )

Other, net ( 314 ) ( 216 )

Cash provided by (used in) financing activities

Cash used in financing activities

( 2,162 ) ( 5,553 )

8 unchanged sentences

Equity Attributable to Disney

Common Stock Retained Earnings

Common Stock and Additional Paid-in Capital

Retained Earnings

Comprehensive

2 unchanged sentences

Interests (2)

Balance at September 27, 2025 1,791 $ 59,814 $ 60,410 $ ( 2,914 ) $ ( 7,441 ) $ 109,869 $ 4,743 $ 114,612

Comprehensive income

Balance at December 27, 2025 1,776 $ 60,704 $ 60,164 $ ( 2,900 ) $ ( 9,492 ) $ 108,476 $ 5,532 $ 114,008

Comprehensive income (loss)

— — 2,247 ( 51 ) — 2,196 227 2,423

3 unchanged sentences

( 33 ) — — — ( 3,466 ) ( 3,466 ) — ( 3,466 )

Acquisition of Fubo

Fubo and NFL Transactions

— 1,229 — — — 1,229 1,231 2,460

Distributions and other — ( 12 ) ( 4 ) — ( 32 ) ( 48 ) ( 391 ) ( 439 )

Balance at March 28, 2026 1,745 $ 62,256 $ 62,393 $ ( 2,951 ) $ ( 12,990 ) $ 108,708 $ 6,604 $ 115,312

Balance at December 28, 2024 1,810 $ 58,868 $ 50,468 $ ( 2,688 ) $ ( 4,715 ) $ 101,933 $ 4,806 $ 106,739

Comprehensive income (loss) — — 3,275 ( 189 ) — 3,086 135 3,221

Equity compensation activity 1 320 — — — 320 — 320

Dividends — 7 ( 7 ) — — — — —

Common stock repurchases

( 9 ) — — — ( 991 ) ( 991 ) — ( 991 )

Distributions and other ( 1 ) 4 ( 3 ) — ( 10 ) ( 9 ) ( 514 ) ( 523 )

Balance at March 29, 2025 1,801 $ 59,199 $ 53,733 $ ( 2,877 ) $ ( 5,716 ) $ 104,339 $ 4,427 $ 108,766

(1) Shares are net of treasury shares.

(2) Excludes redeemable noncontrolling interests.

See Notes to Condensed Consolidated Financial Statements

THE WALT DISNEY COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Six Months Ended

Equity Attributable to Disney

Common Stock and Additional Paid-in Capital

Retained Earnings

Comprehensive

(Loss) Treasury Stock Total Disney Equity

Non-controlling Interests (2)

Balance at September 27, 2025 1,791 $ 59,814 $ 60,410 $ ( 2,914 ) $ ( 7,441 ) $ 109,869 $ 4,743 $ 114,612

Comprehensive income — — 2,554 1,011 — 3,565 18 3,583

Comprehensive income (loss)

— — 4,649 ( 37 ) — 4,612 336 4,948

Equity compensation activity 5 566 — — — 566 5 571

2 unchanged sentences

( 51 ) — — — ( 5,500 ) ( 5,500 ) — ( 5,500 )

Fubo and NFL Transactions

— 1,875 — — — 1,875 1,933 3,808

Distributions and other — ( 13 ) ( 1 ) — ( 49 ) ( 63 ) ( 413 ) ( 476 )

Balance at December 28, 2024 1,810 $ 58,868 $ 50,468 $ ( 2,688 ) $ ( 4,715 ) $ 101,933 $ 4,806 $ 106,739

Balance at March 28, 2026 1,745 $ 62,256 $ 62,393 $ ( 2,951 ) $ ( 12,990 ) $ 108,708 $ 6,604 $ 115,312

Balance at September 28, 2024 1,812 $ 58,592 $ 49,722 $ ( 3,699 ) $ ( 3,919 ) $ 100,696 $ 4,826 $ 105,522

Comprehensive income — — 5,829 822 — 6,651 153 6,804

Equity compensation activity 6 596 — — — 596 — 596

Dividends — 7 ( 1,814 ) — — ( 1,807 ) — ( 1,807 )

Common stock repurchases ( 16 ) — — — ( 1,785 ) ( 1,785 ) — ( 1,785 )

Distributions and other ( 1 ) 4 ( 4 ) — ( 12 ) ( 12 ) ( 552 ) ( 564 )

Balance at March 29, 2025 1,801 $ 59,199 $ 53,733 $ ( 2,877 ) $ ( 5,716 ) $ 104,339 $ 4,427 $ 108,766

(1) Shares are net of treasury shares.

8 unchanged sentences

We believe that we have included all normal recurring adjustments necessary for a fair statement of the results for the interim period.

Operating results for the quarter ended December 27, 2025 are not necessarily indicative of the results that may be expected for the year ending October 3, 2026.

Operating results for the six months ended March 28, 2026 are not necessarily indicative of the results that may be expected for the year ending October 3, 2026.

The terms “Company,” “Disney,” “we,” “us,” and “our” are used in this report to refer collectively to the parent company, The Walt Disney Company, as well as the subsidiaries through which its various businesses are actually conducted.

These financial statements should be read in conjunction with the Company’s 2025 Annual Report on Form 10-K.

Effective October 29, 2025, the Company included FuboTV Inc.

(Fubo), a publicly traded virtual multi-channel video programming distributor (vMVPD), in the Company’s Condensed Consolidated Financial Statements.

Effective January 31, 2026, the financial results attributable to the media assets acquired from the NFL have been included in the Company’s Condensed Consolidated Financial Statements.

See Note 4 for additional information.

Effective October 29, 2025, the financial results attributable to FuboTV Inc.

(Fubo) have been included in the Company’s Condensed Consolidated Financial Statements.

See Note 4 for additional information.

On November 14, 2024, the Company and Reliance Industries Limited (RIL) formed a joint venture (India joint venture) that combined the Company’s Star-branded and other general entertainment and sports television channels and Disney+ Hotstar streaming service in India (Star India) with certain media and entertainment businesses controlled by RIL (the Star India Transaction).

15 unchanged sentences

Entertainment, Sports and Experiences, for which separate financial information, including segment revenue and operating income, is evaluated regularly by the Chief Executive Officer, the Chief Operating Decision Maker, to allocate resources and assess performance.

Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, net other income/expense, net interest expense, income taxes and noncontrolling interests.

Segment operating income

In March 2026, the Company announced that the games business, which is reported as part of the Experiences segment, will be brought under the leadership structure of

THE WALT DISNEY COMPANY

1 unchanged sentence

tabular dollars in millions, except for per share data)

generally includes equity in the income of investees, except for our India joint venture, and excludes amortization of intangible assets and impacts from fair value adjustments recognized in connection with the fiscal 2019 acquisition of TFCF Corporation (TFCF) and Hulu LLC (Hulu) and business acquisitions occurring after fiscal 2025 (Acquisition Amortization).

the Entertainment segment.

We will report under the new structure commencing with our fiscal 2027 reporting, at which time we will have implemented changes to our financial reporting processes.

Segment operating income generally includes equity in the income of investees, except for our India joint venture, and excludes amortization of intangible assets and impacts from fair value adjustments recognized in connection with the fiscal 2019 acquisition of TFCF Corporation (TFCF) and Hulu LLC (Hulu) and business acquisitions occurring after fiscal 2025 (Acquisition Amortization).

Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions.

1 unchanged sentence

Segment revenues, segment operating income and significant segment expenses are as follows:

Quarter Ended

2025 December 28,

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Entertainment

2 unchanged sentences

174 117 329 228

11,715 10,682 23,324 21,554

Third parties 4,140 4,167 8,661 8,681

Amounts eliminated in consolidation

469 367 857 703

4,609 4,534 9,518 9,384

Experiences 9,487 8,889 19,493 18,304

8 unchanged sentences

(1) Equity in the income of investees is included in segment operating income as follows:

Quarter Ended

2025 December 28,

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Entertainment $ 108 $ 124 $ 226 $ 242

Sports 13 18 16 28

Equity in the income of investees included in segment operating income 121 142 242 270

2 unchanged sentences

Acquisition Amortization related to an equity investee

— ( 3 ) — ( 6 )

Equity in the income of investees

$ 57 $ 36 $ 150 $ 128

THE WALT DISNEY COMPANY

1 unchanged sentence

tabular dollars in millions, except for per share data)

Quarter Ended

Information about significant segment expenses December 27,

2025 December 28,

Quarter Ended Six Months Ended

Information about significant segment expenses March 28,

2026 March 29,

2025 March 28,

2026 March 29,

Entertainment

1 unchanged sentence

Other segment operating expenses (1)

1,500 1,361 2,969 2,701

Selling, general, administrative and other 2,330 2,293 4,956 4,587

3 unchanged sentences

Other segment operating expenses (2)

248 240 505 490

Selling, general, administrative and other 337 347 645 657

5 unchanged sentences

Other segment operating expenses (3)

985 877 1,887 1,661

Selling, general, administrative and other 1,115 1,024 2,077 1,972

5 unchanged sentences

Acquisition Amortization (5)

313 393 613 787

Total costs and expenses $ 21,379 $ 20,115 $ 43,485 $ 40,727

2 unchanged sentences

(3) Other operating expenses of Experiences include costs for supplies, processing fees and entertainment offerings.

(4) 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 TV and Fubo and (b) the Entertainment segment to the Sports segment to program certain sports content on ABC Network and Disney+.

(4) Reflects fees paid by (a) the entertainment virtual multi-channel video programming distributor (vMVPD) services to the sports and entertainment linear networks for the right to air the networks on the Hulu Live TV and Fubo services and (b) the Entertainment segment to the Sports segment to program certain sports content on ABC Network and Disney+.

The offset is included in Entertainment programming and production costs.

(5) Excludes Acquisition Amortization of intangible assets related to equity investees.

(5) Excludes Acquisition Amortization of intangible assets related to an equity investee.

THE WALT DISNEY COMPANY

2 unchanged sentences

A reconciliation of segment operating income to income before income taxes is as follows:

Quarter Ended

2025 December 28,

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Segment operating income $ 4,603 $ 4,436 $ 9,203 $ 9,496

3 unchanged sentences

Restructuring and impairment charges (1)

( 239 ) ( 109 ) ( 239 ) ( 252 )

Interest expense, net ( 240 ) ( 346 ) ( 515 ) ( 713 )

2 unchanged sentences

Income before income taxes $ 3,367 $ 3,087 $ 7,060 $ 6,747

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

(1) See Note 15 for a discussion of amounts in restructuring and impairment charges.

(2) Acquisition Amortization is as follows:

Quarter Ended

2025 December 28,

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Amortization of intangible assets $ 249 $ 327 $ 485 $ 654

1 unchanged sentence

Intangibles related to an equity investee

The following table presents revenues by segment and major source:

Quarter Ended December 27, 2025

$ 313 $ 396 $ 613 $ 793

The following table presents revenues by segment and source:

Quarter Ended March 28, 2026

Entertainment Sports Experiences Eliminations Total

11 unchanged sentences

$ 11,715 $ 4,609 $ 9,487 $ ( 643 ) $ 25,168

Quarter Ended December 28, 2024

Quarter Ended March 29, 2025

Entertainment Sports Experiences Eliminations Total

14 unchanged sentences

tabular dollars in millions, except for per share data)

Six Months Ended March 28, 2026

Entertainment Sports Experiences Eliminations Total

Subscription and affiliate fees

$ 15,051 $ 6,234 $ — $ ( 886 ) $ 20,399

Advertising 3,445 2,609 — — 6,054

Theme park admissions — — 6,393 — 6,393

Resorts and vacations

— — 4,974 — 4,974

Retail and wholesale sales of merchandise, food and beverage — — 5,183 — 5,183

Merchandise licensing 339 — 1,663 — 2,002

Content sales

3,661 60 — — 3,721

Other 828 615 1,280 ( 300 ) 2,423

$ 23,324 $ 9,518 $ 19,493 $ ( 1,186 ) $ 51,149

Six Months Ended March 29, 2025

Entertainment Sports Experiences Eliminations Total

Subscription and affiliate fees

$ 13,578 $ 6,137 $ — $ ( 653 ) $ 19,062

Advertising 3,496 2,499 — — 5,995

Theme park admissions — — 6,006 — 6,006

Resorts and vacations

— — 4,580 — 4,580

Retail and wholesale sales of merchandise, food and beverage — — 4,905 — 4,905

Merchandise licensing 313 — 1,631 — 1,944

Content sales

3,179 128 — — 3,307

Other 988 620 1,182 ( 278 ) 2,512

$ 21,554 $ 9,384 $ 18,304 $ ( 931 ) $ 48,311

The following table presents revenues by segment and primary geographical markets:

Quarter Ended December 27, 2025

Quarter Ended March 28, 2026

Entertainment Sports Experiences Eliminations Total

3 unchanged sentences

Total revenues $ 11,715 $ 4,609 $ 9,487 $ ( 643 ) $ 25,168

Quarter Ended December 28, 2024

Quarter Ended March 29, 2025

Entertainment Sports Experiences Eliminations Total

3 unchanged sentences

Total revenues $ 10,682 $ 4,534 $ 8,889 $ ( 484 ) $ 23,621

Six Months Ended March 28, 2026

Entertainment Sports Experiences Eliminations Total

Americas $ 18,252 $ 9,322 $ 14,873 $ ( 1,186 ) $ 41,261

Europe 3,624 153 2,156 — 5,933

Asia Pacific 1,448 43 2,464 — 3,955

Total revenues $ 23,324 $ 9,518 $ 19,493 $ ( 1,186 ) $ 51,149

Six Months Ended March 29, 2025

Entertainment Sports Experiences Eliminations Total

Americas $ 17,048 $ 9,159 $ 14,091 $ ( 931 ) $ 39,367

Europe 3,224 149 1,932 — 5,305

Asia Pacific 1,282 76 2,281 — 3,639

Total revenues $ 21,554 $ 9,384 $ 18,304 $ ( 931 ) $ 48,311

THE WALT DISNEY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

tabular dollars in millions, except for per share data)

Revenues recognized in the current and prior-year periods from performance obligations satisfied (or partially satisfied) in previous reporting periods primarily relate to revenues earned on content made available to distributors and licensees in previous reporting periods.

For the quarter ended December 27, 2025, $ 0.3 billion was recognized related to performance obligations satisfied as of September 27, 2025.

For the quarter ended December 28, 2024, $ 0.3 billion was recognized related to performance obligations satisfied as of September 28, 2024.

As of December 27, 2025, revenue for unsatisfied performance obligations expected to be recognized in the future is $ 16 billion, primarily for IP to be made available in the future under existing agreements with merchandise and co-branding licensees and sponsors, wholesalers of SVOD streaming services, television station affiliates and sports sublicensees.

For the quarter ended March 28, 2026, $ 0.9 billion was recognized related to performance obligations satisfied as of December 27, 2025.

For the six months ended March 28, 2026, $ 0.6 billion was recognized related to performance obligations satisfied as of September 27, 2025.

For the quarter ended March 29, 2025, $ 0.6 billion was recognized related to performance obligations satisfied as of December 28, 2024.

For the six months ended March 29, 2025, $ 0.6 billion was recognized related to performance obligations satisfied as of September 28, 2024.

As of March 28, 2026, revenue for unsatisfied performance obligations expected to be recognized in the future is $ 17 billion, primarily for IP to be made available in the future under existing agreements with merchandise and co-branding licensees and sponsors, wholesalers of streaming services, television station affiliates and sports sublicensees.

Of this amount, we expect to recognize approximately $ 4 billion in the remainder of fiscal 2026, $ 5 billion in fiscal 2027, $ 4 billion in fiscal 2028 and $ 4 billion thereafter.

9 unchanged sentences

Non-current 723 785

For the quarter ended December 27, 2025, the Company recognized revenue of $ 3.6 billion that was included in the September 27, 2025 deferred revenue balance.

For the quarter ended December 28, 2024, the Company recognized revenue of $ 3.6 billion that was included in the September 28, 2024 deferred revenue balance.

For the quarter and six months ended March 28, 2026, the Company recognized revenue of $ 0.9 billion and $ 4.7 billion, respectively, that was included in the September 27, 2025 deferred revenue balance.

For the quarter and six months ended March 29, 2025, the Company recognized revenue of $ 1.0 billion and $ 4.5 billion, respectively, that was included in the September 28, 2024 deferred revenue balance.

Amounts deferred generally relate to theme park admissions and vacation packages, subscriptions to streaming services and advances related to merchandise and TV/VOD licenses.

1 unchanged sentence

NFL media assets

In January 2026, ESPN acquired NFL Network and certain other media assets owned and controlled by NFL Enterprises LLC, including the NFL RedZone channel’s pay TV distribution and NFL Fantasy (collectively the Specified Assets), from NFL Enterprises LLC in exchange for a 10 % noncontrolling interest of ESPN (the NFL Transaction).

This transaction will allow the Company to expand audience reach, increase accessibility and flexibility for consumers, drive innovation, and offer more high-quality content at competitive prices.

As a result of the NFL Transaction, the Company has an effective 72 % interest in ESPN, with Hearst Corporation (Hearst) and NFL Enterprises LLC holding 18 % and 10 %, respectively.

After July 2034,

Following the NFL Transaction, the Company has an effective 72 % interest in ESPN and Hearst Corporation has an 18 % interest.

After July 2034, based on the performance of the Specified Assets, the Company may have the right to reacquire the NFL’s interest in ESPN in exchange for a ten-year note at 70 % of the then fair market value of the NFL’s interest in ESPN (the Exchange Right).

Alternatively, on a similar time frame, the NFL may have the right to acquire up to a 4 % additional equity interest in ESPN at a purchase price equal to 70 % of the then fair market value of the additional interest in ESPN.

The estimated fair value of the NFL Transaction is approximately $ 3 billion.

A significant portion of the transaction value will be deferred in other assets until 2033 and amortized as an expense thereafter, or, in the case that the Company exercises its Exchange Right, would be charged to equity.

The remaining transaction value was primarily allocated to identifiable intangible assets.

Effective January 31, 2026, the Company has included the financial results attributable to the Specified Assets in the Condensed Consolidated Financial Statements.

These were not significant to the Company’s revenue and net income for the quarter and six months ended March 28, 2026.

Because the NFL Transaction was the exchange of equity interests, the $ 3 billion fair value is a non-cash transaction and is not reflected in the Condensed Consolidated Statement of Cash Flow.

THE WALT DISNEY COMPANY

1 unchanged sentence

tabular dollars in millions, except for per share data)

based on the performance of the Specified Assets, the Company may have the right to reacquire (the Exchange Right) the NFL’s interest in ESPN in exchange for a ten-year note at 70 % of the then fair market value of the NFL’s interest in ESPN.

Alternatively, on a similar time frame, the NFL may have the right to acquire up to a 4 % additional equity interest in ESPN at a purchase price equal to 70 % of the then fair market value of ESPN.

The estimated fair value of the NFL Transaction is approximately $ 3 billion.

A significant portion of the transaction value will be deferred until late fiscal 2033 and amortized as an expense thereafter, or, in the case that the Company exercises its Exchange Right, would be charged to equity.

The Company is in the process of finalizing the valuation of the assets acquired, liabilities assumed and noncontrolling interests.

On October 29, 2025, the Company and Fubo combined certain Hulu Live TV assets, including its carriage agreements, subscription agreements and related data, advertising and sponsorship agreements and intellectual property exclusively related to the “Live TV” brand, with Fubo (the Fubo Transaction).

On October 29, 2025, the Company and Fubo, a publicly traded vMVPD, combined certain Hulu Live TV assets, including its carriage agreements, subscription agreements and related data, advertising and sponsorship agreements and intellectual property exclusively related to the “Live TV” brand, with Fubo (the Fubo Transaction).

The Company has a 70 % economic interest in the combined operations, a 70 % voting interest in Fubo on a fully diluted basis and the right to appoint a majority of Fubo’s Board of Directors.

2 unchanged sentences

Goodwill reflects the synergies expected from enhancing and expanding the Company’s vMVPD offerings with more high-quality offerings, choice and increased flexibility.

The Company has included Fubo’s financial results in the Company’s Condensed Consolidated Financial Statements effective from October 29, 2025.

The revenue of the acquired Fubo operations included in the Company’s Condensed Consolidated Statement of Income for the quarter ended December 27, 2025 was approximately $ 0.3 billion.

Net income of the acquired Fubo operations included in the Company’s Condensed Consolidated Statement of Income for the quarter ended December 27, 2025, was not significant.

Effective October 29, 2025, the Company has included the financial results attributable to Fubo in the Condensed Consolidated Financial Statements.

Revenue included in the quarter and six months ended March 28, 2026 was approximately $ 0.4 billion and $ 0.7 billion, respectively.

The impact on the Company’s net income was not significant for the quarter and six months ended March 28, 2026.

Pursuant to an agreement entered into as part of the Fubo Transaction, the Company is the exclusive distributor of the Hulu Live TV service for five years (renewable for an additional five-year term by mutual agreement) and pays a wholesale fee to Fubo based on Fubo’s cost to program Hulu Live TV.

Under the same agreement, the Company manages the marketing for Hulu Live TV and sells advertising for Hulu Live TV and Fubo for a fee.

Under the same agreement, the Company manages the marketing for Hulu Live TV and sells advertising for the Hulu Live TV and Fubo services for a fee.

The changes in the carrying amount of goodwill are as follows:

1 unchanged sentence

Balance at September 27, 2025 $ 51,258 $ 16,486 $ 5,550 $ 73,294

Fubo Transaction

Fubo and NFL Transactions

1,357 51 — 1,408

Currency translation adjustments and other, net ( 20 ) — — ( 20 )

Balance at December 27, 2025 $ 52,707 $ 16,486 $ 5,550 $ 74,743

Balance at March 28, 2026 $ 52,595 $ 16,537 $ 5,550 $ 74,682

Cash, Cash Equivalents, Restricted Cash and Borrowings

8 unchanged sentences

tabular dollars in millions, except for per share data)

During the quarter ended December 27, 2025, the Company’s borrowing activity was as follows:

During the six months ended March 28, 2026, the Company’s borrowing activity was as follows:

September 27,

2025 Borrowings Payments Other

Activity December 27,

Activity March 28,

Commercial paper with original maturities less than three months (1)

10 unchanged sentences

(2) The other activity includes borrowings assumed in the acquisition of Fubo.

(3) The other activity is attributable to market value adjustments for debt with qualifying hedges.

At December 27, 2025, the Company’s bank facilities, which are with a syndicate of lenders and support our commercial paper borrowings, were as follows:

At March 28, 2026, the Company’s bank facilities, which are with a syndicate of lenders and support our commercial paper borrowings, were as follows:

Capacity Capacity

2 unchanged sentences

Facility expiring March 2029

3,000 — 3,000

Facility expiring February 2031

4,000 — 4,000

Total $ 12,250 $ — $ 12,250

The Company had a $ 5.25 billion bank facility that was scheduled to expire in February 2026 and a $ 4.0 billion facility that was scheduled to expire in March 2027.

The facility expiring in February 2026 was refinanced with a new $ 5.25 billion bank facility maturing in February 2027 and the facility expiring in March 2027 was refinanced with a new $ 4.0 billion facility maturing in February 2031.

The Company’s bank facilities allow for borrowings at rates based on the Secured Overnight Financing Rate (SOFR) and at other variable rates for non-U.S.

1 unchanged sentence

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

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

The Company also has the ability to issue up to $ 500 million of letters of credit under the facility expiring in March 2027, which if utilized, reduces available borrowings under this facility.

As of December 27, 2025, the Company has $ 0.4 billion of outstanding letters of credit, of which none were issued under this facility.

On March 28, 2026, the Company met this covenant by a significant margin.

The bank facilities specifically exclude certain entities, including the Asia Theme Parks and Fubo, from any representations, covenants or events of default.

The Company also has the ability to issue up to $ 500 million of letters of credit under the facility expiring in February 2031, which if utilized, reduces available borrowings under this facility.

As of March 28, 2026, the Company has $ 0.4 billion of outstanding letters of credit, of which none were issued under this facility.

Dollar Denominated Borrowings

In February 2026, the Company borrowed $ 3.5 billion of fixed rate U.S.

dollar denominated notes with maturities ranging from 3 to 10 years and stated interest rates that range from 3.75 % to 4.63 %.

In addition, the Company borrowed $ 0.5 billion of floating rate U.S.

dollar denominated notes that mature in 3 years and are indexed to SOFR plus a spread.

Cruise Ship Credit Facilities

1 unchanged sentence

Payments are due semi-annually over a 12 -year term.

THE WALT DISNEY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

tabular dollars in millions, except for per share data)

Interest expense, net

Interest expense (net of amounts capitalized), interest and investment income, and net periodic pension and postretirement benefit costs (other than service costs) (see Note 8) are reported net in the Condensed Consolidated Statements of Income and consist of the following:

Quarter Ended

2025 December 28,

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Interest expense $ ( 473 ) $ ( 471 ) $ ( 916 ) $ ( 958 )

2 unchanged sentences

Interest expense, net $ ( 240 ) $ ( 346 ) $ ( 515 ) $ ( 713 )

THE WALT DISNEY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

tabular dollars in millions, except for per share data)

Interest and investment income includes gains and losses on certain publicly traded and non-public investments, investment impairments and interest earned on cash and cash equivalents and certain receivables.

14 unchanged sentences

Total liabilities $ 2,293 $ 2,298

The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statements of Income for the quarter ended December 27, 2025:

The following table summarizes the International Theme Parks’ revenues and costs and expenses included in the Company’s Condensed Consolidated Statements of Income for the six months ended March 28, 2026:

Revenues $ 3,133

Costs and expenses ( 2,626 )

Asia Theme Parks’ royalty and management fees of $ 86 million for the quarter ended December 27, 2025 are eliminated in consolidation, but are considered in calculating earnings attributable to noncontrolling interests.

International Theme Parks’ cash flows included in the Company’s Condensed Consolidated Statements of Cash Flows for the quarter ended December 27, 2025 were $ 404 million provided by operating activities, $ 355 million used in investing activities and $ 7 million provided by financing activities.

Asia Theme Parks’ royalty and management fees of $ 176 million for the six months ended March 28, 2026 are eliminated in consolidation, but are considered in calculating earnings attributable to noncontrolling interests.

International Theme Parks’ cash flows included in the Company’s Condensed Consolidated Statements of Cash Flows for the six months ended March 28, 2026 were $ 772 million provided by operating activities, $ 685 million used in investing activities and $ 19 million provided by financing activities.

THE WALT DISNEY COMPANY

3 unchanged sentences

Total capitalized produced and licensed content by predominant monetization strategy is as follows:

As of December 27, 2025 As of September 27, 2025

As of March 28, 2026 As of September 27, 2025

Predominantly

14 unchanged sentences

Amortization of produced and licensed content is as follows:

Quarter Ended

2025 December 28,

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Produced content

1 unchanged sentence

Predominantly monetized as a group 1,770 1,733 3,384 3,546

2,807 2,572 5,775 5,081

Licensed programming rights and advances 3,589 3,504 7,835 7,601

5 unchanged sentences

Pension Plans Postretirement Medical Plans

Quarter Ended Quarter Ended

2025 December 28,

2024 December 27,

2025 December 28,

Quarter Ended Six Months Ended Quarter Ended Six Months Ended

Service costs $ 62 $ 66 $ 123 $ 131 $ — $ — $ — $ —

14 unchanged sentences

A reconciliation of the weighted average number of common and common equivalent shares outstanding and the number of Awards excluded from the diluted earnings per share calculation, as they were anti-dilutive, are as follows:

Quarter Ended

2025 December 28,

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Shares (in millions):

9 unchanged sentences

$ 0.50 $ 0.9 billion January 16, 2025

(1) Amount represents our estimate of the dividends that will be paid on July 22, 2026.

(1) Amount is estimated.

The actual amount will be determined based on shareholders of record at the record date.

1 unchanged sentence

Effective February 7, 2024, the Board of Directors authorized the Company to repurchase a total of 400 million shares of its common stock.

During the quarter ended December 27, 2025, the Company repurchased 18 million shares of its common stock for $ 2.0 billion.

During the quarter ended December 28, 2024, the Company repurchased 7 million shares of its common stock for $ 0.8 billion.

As of December 27, 2025, the Company had remaining authorization in place to repurchase approximately 321 million additional shares.

During the quarter and six months ended March 28, 2026, the Company repurchased 33 million and 51 million shares of its common stock for $ 3.5 billion and $ 5.5 billion, respectively.

During the quarter and six months ended March 29, 2025, the Company repurchased 9 million and 17 million shares of its common stock for $ 1.0 billion and $ 1.8 billion, respectively.

As of March 28, 2026, the Company had remaining authorization in place to repurchase approximately 288 million additional shares.

The repurchase program does not have an expiration date.

8 unchanged sentences

AOCI, before tax

First quarter of fiscal 2026

Balance at September 27, 2025 $ ( 549 ) $ ( 1,901 ) $ ( 1,085 ) $ ( 3,535 )

Quarter Ended December 27, 2025:

Second quarter of fiscal 2026

Balance at December 27, 2025 $ ( 507 ) $ ( 1,905 ) $ ( 1,098 ) $ ( 3,510 )

Quarter Ended March 28, 2026:

Unrealized gains (losses) arising during the period 145 8 ( 294 ) ( 141 )

Reclassifications of realized net (gains) losses to net income 86 ( 4 ) — 82

Balance at March 28, 2026 $ ( 276 ) $ ( 1,901 ) $ ( 1,392 ) $ ( 3,569 )

Second quarter of fiscal 2025

Balance at December 28, 2024 $ 152 $ ( 2,210 ) $ ( 1,197 ) $ ( 3,255 )

First quarter of fiscal 2025

Quarter Ended March 29, 2025:

Unrealized gains (losses) arising during the period ( 213 ) ( 7 ) 50 ( 170 )

Reclassifications of realized net (gains) losses to net income ( 117 ) 33 — ( 84 )

Balance at March 29, 2025 $ ( 178 ) $ ( 2,184 ) $ ( 1,147 ) $ ( 3,509 )

Six months ended fiscal 2026

Balance at September 27, 2025 $ ( 549 ) $ ( 1,901 ) $ ( 1,085 ) $ ( 3,535 )

Quarter Ended December 28, 2024:

Six Months Ended March 28, 2026:

Unrealized gains (losses) arising during the period 124 8 ( 307 ) ( 175 )

Reclassifications of realized net (gains) losses to net income 149 ( 8 ) — 141

Balance at March 28, 2026 $ ( 276 ) $ ( 1,901 ) $ ( 1,392 ) $ ( 3,569 )

Six months ended fiscal 2025

Balance at September 28, 2024 $ ( 319 ) $ ( 2,243 ) $ ( 1,855 ) $ ( 4,417 )

Six Months Ended March 29, 2025:

Unrealized gains (losses) arising during the period 346 ( 7 ) ( 196 ) 143

Reclassifications of realized net (gains) losses to net income ( 205 ) 66 — ( 139 )

Star India Transaction — — 904 904

Balance at December 28, 2024 $ 152 $ ( 2,210 ) $ ( 1,197 ) $ ( 3,255 )

Balance at March 29, 2025 $ ( 178 ) $ ( 2,184 ) $ ( 1,147 ) $ ( 3,509 )

THE WALT DISNEY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

tabular dollars in millions, except for per share data)

for Hedges Unrecognized

2 unchanged sentences

and Other AOCI

First quarter of fiscal 2026

Balance at September 27, 2025 $ 120 $ 446 $ 55 $ 621

Quarter Ended December 27, 2025:

Second quarter of fiscal 2026

Balance at December 27, 2025 $ 109 $ 447 $ 54 $ 610

Quarter Ended March 28, 2026:

Unrealized gains (losses) arising during the period ( 34 ) — 61 27

Reclassifications of realized net (gains) losses to net income ( 20 ) 1 — ( 19 )

Balance at March 28, 2026 $ 55 $ 448 $ 115 $ 618

Second quarter of fiscal 2025

Balance at December 28, 2024 $ ( 38 ) $ 523 $ 82 $ 567

First quarter of fiscal 2025

Quarter Ended March 29, 2025:

Unrealized gains (losses) arising during the period 50 — ( 4 ) 46

Reclassifications of realized net (gains) losses to net income 27 ( 8 ) — 19

Balance at March 29, 2025 $ 39 $ 515 $ 78 $ 632

Six months ended fiscal 2026

Balance at September 27, 2025 $ 120 $ 446 $ 55 $ 621

Quarter Ended December 28, 2024:

Six Months Ended March 28, 2026:

Unrealized gains (losses) arising during the period ( 31 ) — 60 29

Reclassifications of realized net (gains) losses to net income ( 34 ) 2 — ( 32 )

Balance at March 28, 2026 $ 55 $ 448 $ 115 $ 618

Six months ended fiscal 2025

Balance at September 28, 2024 $ 71 $ 531 $ 116 $ 718

Six Months Ended March 29, 2025:

Unrealized gains (losses) arising during the period ( 80 ) — 20 ( 60 )

Reclassifications of realized net (gains) losses to net income 48 ( 16 ) — 32

Star India Transaction — — ( 58 ) ( 58 )

— — ( 58 ) ( 58 )

Balance at December 28, 2024 $ ( 38 ) $ 523 $ 82 $ 567

Balance at March 29, 2025 $ 39 $ 515 $ 78 $ 632

THE WALT DISNEY COMPANY

6 unchanged sentences

AOCI, after tax

First quarter of fiscal 2026

Balance at September 27, 2025 $ ( 429 ) $ ( 1,455 ) $ ( 1,030 ) $ ( 2,914 )

Quarter Ended December 27, 2025:

Second quarter of fiscal 2026

Balance at December 27, 2025 $ ( 398 ) $ ( 1,458 ) $ ( 1,044 ) $ ( 2,900 )

Quarter Ended March 28, 2026:

Unrealized gains (losses) arising during the period 111 8 ( 233 ) ( 114 )

Reclassifications of realized net (gains) losses to net income 66 ( 3 ) — 63

Balance at March 28, 2026 $ ( 221 ) $ ( 1,453 ) $ ( 1,277 ) $ ( 2,951 )

Second quarter of fiscal 2025

Balance at December 28, 2024 $ 114 $ ( 1,687 ) $ ( 1,115 ) $ ( 2,688 )

First quarter of fiscal 2025

Quarter Ended March 29, 2025:

Unrealized gains (losses) arising during the period ( 163 ) ( 7 ) 46 ( 124 )

Reclassifications of realized net (gains) losses to net income ( 90 ) 25 — ( 65 )

Balance at March 29, 2025 $ ( 139 ) $ ( 1,669 ) $ ( 1,069 ) $ ( 2,877 )

Six months ended fiscal 2026

Balance at September 27, 2025 $ ( 429 ) $ ( 1,455 ) $ ( 1,030 ) $ ( 2,914 )

Quarter Ended December 28, 2024:

Six Months Ended March 28, 2026:

Unrealized gains (losses) arising during the period 93 8 ( 247 ) ( 146 )

Reclassifications of realized net (gains) losses to net income 115 ( 6 ) — 109

Balance at March 28, 2026 $ ( 221 ) $ ( 1,453 ) $ ( 1,277 ) $ ( 2,951 )

Six months ended fiscal 2025

Balance at September 28, 2024 $ ( 248 ) $ ( 1,712 ) $ ( 1,739 ) $ ( 3,699 )

Six Months Ended March 29, 2025:

Unrealized gains (losses) arising during the period 266 ( 7 ) ( 176 ) 83

Reclassifications of realized net (gains) losses to net income ( 157 ) 50 — ( 107 )

Star India Transaction

Balance at December 28, 2024 $ 114 $ ( 1,687 ) $ ( 1,115 ) $ ( 2,688 )

Balance at March 29, 2025 $ ( 139 ) $ ( 1,669 ) $ ( 1,069 ) $ ( 2,877 )

THE WALT DISNEY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

tabular dollars in millions, except for per share data)

Details about AOCI components reclassified to net income are as follows:

1 unchanged sentence

Affected line item in the Condensed Consolidated Statements of Income:

Quarter Ended

2025 December 28,

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Market value adjustments, primarily cash flow hedges Primarily revenue $ ( 86 ) $ 117 $ ( 149 ) $ 205

Estimated tax Income taxes 20 ( 27 ) 34 ( 48 )

( 66 ) 90 ( 115 ) 157

Pension and postretirement medical expense Interest expense, net 4 ( 33 ) 8 ( 66 )

Estimated tax Income taxes ( 1 ) 8 ( 2 ) 16

3 ( 25 ) 6 ( 50 )

Total reclassifications for the period $ ( 63 ) $ 65 $ ( 109 ) $ 107

Equity-Based Compensation

Equity-based compensation expense related to stock options and restricted stock units (RSU’s) for the quarters ended December 27, 2025 and December 28, 2024 was $ 332 million and $ 317 million, respectively.

Equity-based compensation capitalized during the quarters ended December 27, 2025 and December 28, 2024 was $ 49 million and $ 44 million, respectively.

Unrecognized compensation cost related to unvested stock options and RSUs was $ 0.1 billion and $ 1.6 billion, respectively, as of December 27, 2025.

Each fiscal year, generally in December and January, the Company awards stock options and restricted stock units to a broad-based group of management, technology and creative personnel (Annual Grant).

Substantially all of the fiscal 2026 Annual Grant was issued in January 2026 and consisted of 2.6 million stock options and 15.2 million RSUs with weighted average grant date fair values of $ 37.11 and $ 113.25 , respectively.

The fiscal 2025 Annual Grant weighted average grant date fair values for stock options and RSUs were $ 37.98 and $ 109.20 , respectively.

THE WALT DISNEY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

tabular dollars in millions, except for per share data)

Equity-based compensation expense related to stock options and restricted stock units (RSUs) is as follows:

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Stock options $ 22 $ 17 $ 41 $ 33

RSUs 383 313 696 614

Total equity-based compensation expense (1)

$ 405 $ 330 $ 737 $ 647

Equity-based compensation expense capitalized during the period $ 48 $ 46 $ 97 $ 90

(1) Equity-based compensation expense is net of capitalized equity-based compensation and estimated forfeitures and excludes amortization of previously capitalized equity-based compensation costs.

Unrecognized compensation cost related to unvested stock options and RSUs was $ 0.1 billion and $ 2.7 billion, respectively, as of March 28, 2026.

During the six months ended March 28, 2026, the Company made equity compensation grants for Disney stock consisting of 2.7 million stock options and 15.5 million RSUs with weighted average grant date fair values of $ 37 and $ 113 , respectively.

During the six months ended March 29, 2025, the weighted average grant date fair values for stock options and RSUs were $ 38 and $ 109 , respectively.

Commitments and Contingencies

9 unchanged sentences

The Company intends to defend against the lawsuit vigorously.

The Company filed a motion to dismiss the complaint for failure to state a claim on December 21, 2023, which was granted in part (dismissing the Section 20A claim against Iger) and otherwise denied on February 19, 2025.

The Company filed a motion to dismiss the complaint for failure to state a claim on December 21, 2023,

THE WALT DISNEY COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

tabular dollars in millions, except for per share data)

which was granted in part (dismissing the Section 20A claim against Iger) and otherwise denied on February 19, 2025.

On March 28, 2025, the Company filed a motion for judgment on the pleadings, which was denied on May 21, 2025.

6 unchanged sentences

On January 2, 2026, the parties filed a joint stipulation to stay the Union Asset Action until the Securities Class Action concludes.

The court granted the stay on March 3, 2026.

The Company intends to defend against this lawsuit vigorously.

1 unchanged sentence

Derivative Actions

Six shareholder derivative complaints have been filed against the Company and certain current and former officers and directors.

Eight shareholder derivative complaints have been filed against the Company and certain current and former officers and directors.

Each of these actions asserts various claims including breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, waste, insider selling, and violations of federal securities laws based on substantially similar factual allegations as those asserted in the pending Securities Class Action.

14 unchanged sentences

On January 14, 2026, the Paul action was consolidated into the Consolidated Derivative Action, which is stayed until August 21, 2026.

• On February 24, 2026, Sean Martinez filed a shareholder derivative complaint in the Court of Chancery of the State of Delaware.

On April 16, 2026, the Martinez action was stayed until the court in the Securities Class Action rules upon the motion for summary judgment.

• On March 10, 2026, Karen Gioli filed a shareholder derivative complaint in the U.S.

District Court for the Central District of California.

The actions seek declarative and injunctive relief, an award of unspecified damages to The Walt Disney Company and other costs and fees.

29 unchanged sentences

The settlement is contingent on Biddle/Fendelander Counsel obtaining Court approval and other contingencies.

A preliminary approval hearing is scheduled for February 19, 2026.

The Court issued an order granting preliminary approval of the settlement on March 31, 2026.

The motion for final approval of the settlement is due on October 27, 2026, and the final approval hearing is scheduled for January 14, 2027.

The Company and Unger Counsel did not reach a settlement at the October 3, 2025 mediation.

The Company filed a motion to compel arbitration of individual claims and dismiss class claims in the Unger Action on December 19, 2025.

A hearing on the motion is set for March 19, 2026.

The Court heard argument on the Company’s motion to compel arbitration of individual claims and dismiss class claims on March 19, 2026, and the motion is still pending.

The Company intends to continue to defend against the lawsuit vigorously.

At this time, we cannot reasonably estimate the amount of any possible loss in the Unger Action.

At this time, we expect any loss in the Unger Action would be in an amount that is not material for the Company.

On January 2, 2026, in litigation filed by the Company on August 28, 2025 asserting breach of contract claims against DISH Network L.L.C.

1 unchanged sentence

District Court for the Southern District of New York, DISH filed antitrust counterclaims against the Company.

DISH filed amended counterclaims against the Company on March 13, 2026.

DISH asserts a tying claim under Sherman Act § 1 and New York’s Donnelly Act challenging certain provisions in the Company’s carriage agreement with DISH;

claims under Sherman Act § 1 challenging an ESPN / Fox One bundle, the creation of Fubo Sports, and the Company’s acquisition of a controlling share of Fubo;

a claim under Clayton Act § 7 challenging the Company’s acquisition of a controlling share of Fubo;

and a claim under Sherman Act § 2 alleging the Company engaged in a pattern of conduct in an attempt to monopolize an alleged market for skinny sports

claims under Sherman Act § 1 challenging an ESPN / Fox One bundle, the creation of Fubo Sports, and

THE WALT DISNEY COMPANY

1 unchanged sentence

tabular dollars in millions, except for per share data)

the Company’s acquisition of a controlling share of Fubo;

a claim under Clayton Act § 7 challenging the Company’s acquisition of a controlling share of Fubo;

and a claim under Sherman Act § 2 alleging the Company engaged in a pattern of conduct in an attempt to monopolize an alleged market for skinny sports bundles.

DISH also asserts breach-of-contract counterclaims, contending that Company-affiliated entities violated their obligations under certain most-favored-nation provisions in the operative carriage agreement.

The Company’s response to these counterclaims is due on February 20, 2026.

The Company moved to dismiss the amended counterclaims on March 27, 2026.

The briefing remains ongoing, with DISH’s opposition due April 10, 2026.

The Company intends to prosecute its claims and defend against these counterclaims vigorously.

5 unchanged sentences

The Company’s assets and liabilities measured at fair value are summarized in the following tables by fair value measurement level:

Fair Value Measurement at December 27, 2025

Fair Value Measurement at March 28, 2026

Level 1 Level 2 Level 3 Total

24 unchanged sentences

The fair values of Level 2 derivatives are primarily determined by internal discounted cash flow models that use observable inputs such as interest rates, yield curves and foreign currency exchange rates.

Counterparty credit risk, which is mitigated by master netting agreements and collateral posting arrangements with certain counterparties, had an impact on derivative fair value estimates that was not material.

The Company’s derivative financial instruments are discussed in Note 14.

10 unchanged sentences

The Company’s derivative positions measured at fair value (see Note 13) are summarized in the following tables:

As of December 27, 2025

As of March 28, 2026

Assets Investments/

29 unchanged sentences

The Company designates pay-floating interest rate swaps as fair value hedges of fixed-rate borrowings effectively converting fixed-rate borrowings to variable-rate borrowings.

The total notional amount of the Company’s pay-floating interest rate swaps was $ 10.6 billion at both December 27, 2025 and September 27, 2025.

The total notional amount of the Company’s pay-floating interest rate swaps was $ 12.1 billion and $ 10.6 billion at March 28, 2026 and September 27, 2025, respectively.

The following table summarizes fair value hedge adjustments to hedged borrowings:

2 unchanged sentences

2026 September 27,

2025 December 27,

2025 March 28,

2026 September 27,

6 unchanged sentences

The following amounts are included in “Interest expense, net” in the Condensed Consolidated Statements of Income:

Quarter Ended

2025 December 28,

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Gain (loss) on:

5 unchanged sentences

The Company designates foreign exchange forward and option contracts as cash flow hedges of firmly committed and forecasted foreign currency transactions.

As of December 27, 2025 and September 27, 2025, the notional amount of the Company’s net foreign exchange cash flow hedges was $ 10.1 billion and $ 9.3 billion, respectively.

As of March 28, 2026 and September 27, 2025, the notional amount of the Company’s net foreign exchange cash flow hedges was $ 11.0 billion and $ 9.3 billion, respectively.

Mark-to-market gains and losses on these contracts are deferred in AOCI and are recognized in earnings when the hedged transactions occur, offsetting changes in the value of the foreign currency transactions.

1 unchanged sentence

The following table summarizes the effect of foreign exchange cash flow hedges on AOCI:

Quarter Ended

2025 December 28,

Quarter Ended Six Months Ended

2026 March 29,

2025 March 28,

2026 March 29,

Gain (loss) recognized in Other Comprehensive Income $ 118 $ ( 210 ) $ 93 $ 352

Gain (loss) reclassified from AOCI into the Statements of Operations (1)

( 85 ) 121 ( 147 ) 210

(1) Primarily recorded in revenue.

1 unchanged sentence

The impact from the change in foreign currency on both the cross currency swap and borrowing is recorded to “Interest expense, net.” The impact from interest rate changes is recorded in AOCI and is amortized over the life of the cross currency swap.

As of December 27, 2025 and September 27, 2025, the total notional amount of the Company’s designated cross currency swaps was Canadian $ 1.3 billion ($ 1.0 billion) and Canadian $ 1.3 billion ($ 0.9 billion), respectively.

The related gains or losses recognized in earnings for the quarters ended December 27, 2025 and December 28, 2024 were not material.

As of both March 28, 2026 and September 27, 2025, the total notional amount of the Company’s designated cross currency swaps was Canadian $ 1.3 billion ($ 0.9 billion).

The related gains or losses recognized in earnings for the quarters and six-month periods ended March 28, 2026 and March 29, 2025 were not significant.

Foreign exchange risk management contracts with respect to foreign currency denominated assets and liabilities are not designated as hedges and do not qualify for hedge accounting.

The net notional amount of these foreign exchange contracts at December 27, 2025 and September 27, 2025 was $ 3.2 billion and $ 3.0 billion, respectively.

The related gains or losses recognized in costs and expenses on foreign exchange contracts that mitigated our exposure with respect to foreign currency denominated assets and liabilities for the quarters ended December 27, 2025 and December 28, 2024 were not material.

The net notional amount of these foreign exchange contracts at March 28, 2026 and September 27, 2025 was $ 2.7 billion and $ 3.0 billion, respectively.

The related gains or losses recognized in costs and expenses on foreign exchange contracts that mitigated our exposure with respect to foreign currency denominated assets and liabilities for the quarters and six-month periods ended March 28, 2026 and March 29, 2025 were not significant.

Risk Management – Other Derivatives Not Designated as Hedges

1 unchanged sentence

These contracts, which include certain total return swap contracts, are intended to offset economic exposures of the Company and are carried at market value with any changes in value recorded in earnings.

The net notional amount of these contracts at December 27, 2025 and September 27, 2025 was $ 0.7 billion and $ 0.6 billion, respectively.

The related gains or losses recognized in earnings for the quarters ended December 27, 2025 and December 28, 2024 were not material.

The net notional amount of these contracts at both March 28, 2026 and September 27, 2025 was $ 0.6 billion.

The related gains or losses recognized in earnings for the quarters and six-month periods ended March 28, 2026 and March 29, 2025 were not significant.

Contingent Features and Cash Collateral

2 unchanged sentences

In addition, these contracts may require a counterparty to post collateral to the Company in the event that a net receivable position with a counterparty exceeds limits defined by contract and that vary with the counterparty’s credit rating.

If the Company’s or the counterparty’s credit ratings were to fall below investment grade, such counterparties or the Company would also have the right to terminate our derivative contracts, which could lead to a net payment to or from the Company for the aggregate net value by counterparty of our derivative contracts.

The aggregate fair value of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty was $ 0.9 billion at December 27, 2025 and September 27, 2025.

THE WALT DISNEY COMPANY

1 unchanged sentence

tabular dollars in millions, except for per share data)

derivative contracts.

The aggregate fair value of derivative instruments with credit-risk-related contingent features in a net liability position by counterparty was $ 0.7 billion and $ 0.9 billion at March 28, 2026 and September 27, 2025, respectively.

Restructuring and Impairment Charges

The following amounts are recorded in “Restructuring and impairment charges” in the Condensed Consolidated Statements of Income:

The quarter and six-month period ended March 28, 2026 included a $ 0.1 billion impairment of an equity investment and a $ 0.1 billion charge for severance.

The quarter ended March 29, 2025 included charges of $ 0.1 billion related to content impairments.

The six-month period ended March 29, 2025 included charges of $ 0.2 billion related to content impairments and the Star India Transaction.

New Accounting Pronouncements

17 unchanged sentences

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 1. Financial Statements