Disney(US:DIS)2026-02-02 11:44Financial Performance - Total revenues for the quarter ended December 27, 2025, increased to $25,981 million, up 5.2% from $24,690 million in the same quarter of 2024[14] - Net income attributable to The Walt Disney Company for the quarter was $2,402 million, a decrease of 5.9% compared to $2,554 million in the prior year[14] - Earnings per share (diluted) for the quarter was $1.34, down from $1.40 in the same quarter last year, reflecting a 4.3% decline[14] - Comprehensive income attributable to Disney for the quarter was $2,416 million, down from $3,565 million in the same quarter of 2024, reflecting a decrease of 32.2%[15] - Total segment revenues for the quarter ended December 27, 2025, reached $25.981 billion, an increase from $24.690 billion in the prior year, representing a growth of 5.2%[34] - Segment operating income decreased to $4.600 billion for the quarter ended December 27, 2025, down from $5.060 billion in the same quarter of the previous year, a decline of 9.1%[37] Cash Flow and Operations - Cash provided by operations for the quarter was $735 million, significantly lower than $3,205 million in the same quarter of 2024, representing a decrease of 77%[20] - Cash and cash equivalents as of December 27, 2025, totaled $5.678 billion, with restricted cash of $108 million[51] - Cash provided by financing activities was $1.984 billion, a significant improvement compared to cash used of $997 million in the prior-year quarter[157] - The change in cash, cash equivalents, and restricted cash was a decrease of $13 million, a 98% improvement from a decrease of $520 million in the prior-year quarter[149] Assets and Liabilities - Total assets as of December 27, 2025, were $202,089 million, an increase from $197,514 million at the end of the previous quarter[18] - Current liabilities increased to $38,046 million from $34,162 million in the prior quarter, marking an increase of 11%[18] - The company's total borrowings increased to $46.640 billion as of December 27, 2025, reflecting various borrowing activities during the quarter[52] - The fair value of borrowings as of December 27, 2025, was $43.66 billion, with $40.18 billion classified under Level 2[83] Segment Performance - Entertainment segment revenues increased to $11.609 billion, up from $10.872 billion, reflecting a growth of 6.8% year-over-year[38] - Sports segment revenues rose slightly to $4.909 billion from $4.850 billion, marking a growth of 1.2%[38] - Experiences segment revenues increased to $10.006 billion, compared to $9.415 billion, a growth of 6.3% year-over-year[38] - Operating income for the Entertainment segment fell by 35% to $1,100 million from $1,703 million, primarily due to lower theatrical distribution results[128] - Operating income for the Experiences segment increased by 6% to $3,309 million from $3,110 million, driven by growth at domestic parks and experiences[145] Costs and Expenses - Total costs and expenses for the quarter were $22.106 billion, compared to $20.612 billion in the previous year, reflecting an increase of 7.2%[36] - Programming and production costs in the Entertainment segment rose to $6.314 billion, up from $5.475 billion, an increase of 15.2%[36] - Cost of services increased by 9%, or $1.2 billion, to $15.0 billion, influenced by higher programming and production costs[105] - Selling, general, and administrative costs rose by 5%, or $0.2 billion, to $4.1 billion due to increased marketing expenses[106] Shareholder Actions - The company repurchased $2,034 million of common stock during the quarter, compared to $794 million in the same quarter of the previous year[20] - During the quarter ended December 27, 2025, the company repurchased 18 million shares for $2.0 billion, compared to 7 million shares for $0.8 billion in the same quarter of the previous year[62] - The company had remaining authorization to repurchase approximately 321 million additional shares as of December 27, 2025[62] - The Company plans to target $7 billion in share repurchases for fiscal 2026[158] Legal and Compliance - The Company is involved in multiple legal actions, including a securities class action lawsuit filed on May 12, 2023, alleging misstatements regarding Disney+ costs and subscriber growth[68] - The Company intends to vigorously defend against all lawsuits and cannot reasonably estimate the amount of any possible loss at this time[81] - The Company is committed to compliance with the Sarbanes-Oxley Act of 2002, as evidenced by certifications from the CEO and CFO[199] Strategic Initiatives - The company included FuboTV Inc. in its consolidated financial statements effective October 29, 2025, indicating a strategic expansion in the streaming market[26] - The Company formed a joint venture with Reliance Industries Limited, holding a 37% interest, consolidating Star India's results until November 14, 2024[27] - The estimated fair value of the NFL Transaction, which includes the acquisition of NFL media assets, is approximately $3 billion, with a significant portion deferred until late fiscal 2033[44] Future Outlook - The Company expects fiscal 2026 spending on produced and licensed content, including sports rights, to be approximately $24 billion[152] - Capital expenditures for fiscal 2026 are projected to be around $9 billion, up from $8 billion in fiscal 2025, driven by theme park and resort expansion[156] - The Company is currently assessing the impact of new accounting guidance on its financial statement disclosures, effective for fiscal years 2026 and 2028[96][97]