Walt DisneyDIS

01Resorts and vacations revenue increased 10% from additional passenger cruise days The increase in passenger cruise days reflected the launches of the Disney Destiny in November 2025 and the Disney Adventure in March 2026 The Company currently expects its fiscal 2026 capital expenditures to be approximately $9 billion compared to fiscal 2025 capital expenditures of $8 billion The projected increase in capital expenditures is due to higher spending at Experiences, attributable to theme park and resort expansion and new attractions

02Disney's DTC streaming business is transitioning from subscriber acquisition mode to margin expansion, with subscription revenue growing faster than streaming content costs. The content spend increase is modest relative to revenue growth, indicating the business model is inflecting toward profitability leverage rather than growth-at-all-costs.

03The Company may use cash balances, operating cash flows, commercial paper borrowings up to the amount of its unused $12.25 billion bank facilities 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) On June 27, 2026, the Company met this covenant by a significant margin Cash provided by operations was $12.5 billion for the current period

04Higher content sales revenue was primarily due to an increase of 11% from theatrical distribution Performance of Zootopia 2, Avatar: Fire and Ash, The Devil Wears Prada 2, Toy Story 5, Hoppers and The Mandalorian and Grogu in the current period Higher intersegment allocations of revenues from the Experiences segment reflecting an increase in merchandise licensing royalties