The Walt Disney Company 8-K
PositiveEarningsGuidance reaffirmedRestructuringImpairment / charge
A+E stake sale to Hearst agreed to fund buybacks; FY2026 repurchase target raised.
Filed 2026-08-05 06:30 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 FY2026 results with reiterated full-year outlook. Revenue and total segment operating income increased, led by Experiences and Entertainment, while Sports segment operating income declined. Disney also raised its FY2026 share-repurchase target to at least $9B and agreed to sell its A+E Global Media stake.
Key Figures
| Metric | Q3 FY2026 | Q3 FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $25.2B | $23.7B | +7% |
| Income before income taxes | $3.65B | $3.21B | +14% |
| Total segment operating income (non-GAAP) | $5.56B | $4.58B | +21% |
| Net income attributable to Disney | $2.64B | $5.26B | -50% |
| Diluted EPS | $1.51 | $2.92 | -48% |
| Adjusted EPS (non-GAAP) | $2.06 | $1.61 | +28% |
| Cash provided by operations | $4.87B | $3.67B | +33% |
| Free cash flow (non-GAAP) | $3.07B | $1.89B | +63% |
- Experiences segment operating income rose 20% on higher parks, cruise and consumer-products revenue; Entertainment rose 64%, driven by subscription and affiliate fees. Sports fell 17% as higher programming costs—including NBA rights-cost timing—and a network carriage dispute offset revenue growth.
- For the nine months, revenue was $76.4B (+6%), net income attributable to Disney was $7.29B (-34%), and adjusted EPS was $5.25 (+9%). Cash provided by operations fell 8% to $12.5B and free cash flow fell 24% to $5.74B, reflecting higher tax payments and increased parks investment. Q3 included $900M in restructuring and impairment charges, including an $812M impairment of the A+E investment and $88M of severance costs.
- Disney agreed to sell its 50% A+E Global Media interest to an affiliate of Hearst for ≈$1.2B cash, with closing expected by FY2026-end subject to customary conditions and approvals; proceeds are intended for share repurchases. FY2026 year-to-date repurchases were $7.25B; treasury shares rose to 148M from 79M at FY2025 year-end. Cash was $5.19B at 6/27/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Adjusted EPS growth, excluding 53rd week | FY2026 | ≈12% | — | Reaffirmed |
| Adjusted EPS growth, including 53rd week | FY2026 | ≈16% | — | Reaffirmed |
| Total segment operating income | Q4 FY2026 | ≈$4.9B, including 53rd week | — | — |
| 53rd-week contribution to total segment operating income | Q4 FY2026 | ≈$600M | — | — |
| Revenue impact from 53rd week | FY2026 | ≈1.5%-2% lift | — | — |
| Experiences segment operating income growth, excluding 53rd week | FY2026 | High end of prior high-single-digit growth guidance | High-single-digit growth | — |
| Sports segment operating income growth, excluding 53rd week | FY2026 | Mid-single digits | — | Reaffirmed |
| Entertainment segment operating income growth, excluding 53rd week | FY2026 | Double digits | — | Reaffirmed |
| Entertainment SVOD operating margin, excluding 53rd week | FY2026 | Double digits | — | Reaffirmed |
| Cash provided by operations | FY2026 | At least $19B | — | Reaffirmed |
| Capital expenditures | FY2026 | ≈$9B | — | Reaffirmed |
| Share repurchases | FY2026 | At least $9B | — | — |
| Adjusted EPS growth, excluding 53rd week | FY2027 | Double digits | — | Reaffirmed |
Investor Takeaways
- Watch Q4 global guest growth, which Disney expects despite continued softness at its Asia parks.
- Q4 results will test the outlook against softer domestic streaming advertising and Moana’s below-expectation box office performance.
- A+E sale completion by FY2026-end remains subject to regulatory approvals and other customary closing conditions.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3