# Walt Disney Co (DIS) Informational only - not investment advice. CIK: 0001744489 SIC: 7990 Services-Miscellaneous Amusement & Recreation SIC breadcrumb: [Services](/division/I/) > [Amusement And Recreation Services](/major-group/79/) > [SIC 7990 Services-Miscellaneous Amusement & Recreation](/industry/7990/) Latest 10-K filed: 2025-11-13 SEC page: https://www.sec.gov/edgar/browse/?CIK=1744489 Filing source: https://www.sec.gov/Archives/edgar/data/1744489/000174448925000155/dis-20250927.htm ## At a glance FY2025 · period end 2025-09-27 · filed 2025-11-13 · accession 0001744489-25-000155 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001744489.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 94,425,000,000 USD | 2025 | verified | | Net income | 12,404,000,000 USD | 2025 | verified | | Assets | 197,514,000,000 USD | 2025 | verified | | Free cash flow | 10,077,000,000 USD | 2025 | computed | | Net margin | 13.14% | 2025 | computed | | Operating margin | 18.59% | 2025 | computed | | Revenue YoY | +3.35% | 2025 | computed | | ROE | 11.29% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | DIS | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 13.1% | 5.0% | 92 | 13 | | Operating margin | 18.6% | 13.3% | 60 | 11 | | Revenue growth | 3.4% | 3.4% | 50 | 11 | | FCF margin | 10.7% | 9.8% | 60 | 11 | | ROE | 11.3% | 14.0% | 44 | 10 | | ROA | 6.3% | 3.4% | 75 | 13 | | Liabilities / equity | 0.80 | 3.75 | 22 | 10 | | Current ratio | 0.71 | 0.72 | 45 | 12 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7990 Services-Miscellaneous Amusement & Recreation, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 94425000000 | USD | 2025 | 2025-11-13 | | Net income | 12404000000 | USD | 2025 | 2025-11-13 | | Assets | 197514000000 | USD | 2025 | 2025-11-13 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001744489.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 55,137,000,000 | 59,434,000,000 | 69,607,000,000 | 65,388,000,000 | 67,418,000,000 | 82,722,000,000 | 88,898,000,000 | 91,361,000,000 | 94,425,000,000 | | Net income | 8,980,000,000 | 12,598,000,000 | 11,054,000,000 | -2,864,000,000 | 1,995,000,000 | 3,145,000,000 | 2,354,000,000 | 4,972,000,000 | 12,404,000,000 | | Operating income | 14,775,000,000 | 15,689,000,000 | 14,847,000,000 | 8,108,000,000 | 7,766,000,000 | 12,121,000,000 | 12,863,000,000 | 15,601,000,000 | 17,551,000,000 | | Diluted EPS | 5.69 | 8.36 | 6.64 | -1.58 | 1.09 | 1.72 | 1.29 | 2.72 | 6.85 | | Operating cash flow | | | | | | | 9,866,000,000 | 13,971,000,000 | 18,101,000,000 | | Capital expenditures | 3,623,000,000 | 4,465,000,000 | 4,876,000,000 | 4,022,000,000 | 3,578,000,000 | 4,943,000,000 | 4,969,000,000 | 5,412,000,000 | 8,024,000,000 | | Dividends paid | 2,445,000,000 | 2,515,000,000 | 2,895,000,000 | 1,587,000,000 | 0.00 | 0.00 | 0.00 | 1,366,000,000 | 1,803,000,000 | | Share buybacks | 9,368,000,000 | 3,577,000,000 | 0.00 | 0.00 | | 0.00 | 0.00 | 2,992,000,000 | 3,500,000,000 | | Assets | | 98,598,000,000 | 193,984,000,000 | 201,549,000,000 | 203,609,000,000 | 203,631,000,000 | 205,579,000,000 | 196,219,000,000 | 197,514,000,000 | | Stockholders' equity | | 48,773,000,000 | 88,877,000,000 | 83,583,000,000 | 88,553,000,000 | 95,008,000,000 | 99,277,000,000 | 100,696,000,000 | 109,869,000,000 | | Cash and cash equivalents | 4,017,000,000 | 4,150,000,000 | 5,418,000,000 | 17,914,000,000 | 15,959,000,000 | 11,615,000,000 | 14,182,000,000 | 6,002,000,000 | 5,695,000,000 | | Free cash flow | | | | | | | 4,897,000,000 | 8,559,000,000 | 10,077,000,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 16.29% | 21.20% | 15.88% | -4.38% | 2.96% | 3.80% | 2.65% | 5.44% | 13.14% | | Operating margin | 26.80% | 26.40% | 21.33% | 12.40% | 11.52% | 14.65% | 14.47% | 17.08% | 18.59% | | Return on equity | | 25.83% | 12.44% | -3.43% | 2.25% | 3.31% | 2.37% | 4.94% | 11.29% | | Return on assets | | 12.78% | 5.70% | -1.42% | 0.98% | 1.54% | 1.15% | 2.53% | 6.28% | | Liabilities / equity | | 1.02 | 1.18 | 1.41 | 1.30 | 1.14 | 1.07 | 0.95 | 0.80 | | Current ratio | | 0.94 | 0.90 | 1.32 | 1.08 | 1.00 | 1.05 | 0.73 | 0.71 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001744489.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2023-Q1 | 2022-12-31 | | | 0.70 | reported discrete quarter | | 2023-Q2 | 2023-04-01 | | | 0.69 | reported discrete quarter | | 2023-Q3 | 2023-07-01 | | | -0.25 | reported discrete quarter | | 2023-Q4 | 2023-09-30 | 21,241,000,000 | 264,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2023-12-30 | 23,549,000,000 | 1,911,000,000 | 1.04 | reported discrete quarter | | 2024-Q2 | 2024-03-30 | 22,083,000,000 | -20,000,000 | -0.01 | reported discrete quarter | | 2024-Q3 | 2024-06-29 | 23,155,000,000 | 2,621,000,000 | 1.43 | reported discrete quarter | | 2024-Q4 | 2024-09-28 | 22,574,000,000 | 460,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2024-12-28 | 24,690,000,000 | 2,554,000,000 | 1.40 | reported discrete quarter | | 2025-Q2 | 2025-03-29 | 23,621,000,000 | 3,275,000,000 | 1.81 | reported discrete quarter | | 2025-Q3 | 2025-06-28 | 23,650,000,000 | 5,262,000,000 | 2.92 | reported discrete quarter | | 2025-Q4 | 2025-09-27 | 22,464,000,000 | 1,313,000,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2025-12-27 | 25,981,000,000 | 2,402,000,000 | 1.34 | reported discrete quarter | | 2026-Q2 | 2026-03-28 | 25,168,000,000 | 2,247,000,000 | 1.27 | reported discrete quarter | | 2026-Q3 | 2026-06-27 | 25,248,000,000 | 2,638,000,000 | 1.51 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from DIS's latest 10-K: [/company/DIS/business/](/company/DIS/business/). ## Risk Factors Verbatim Item 1A Risk Factors from DIS's latest 10-K: [/company/DIS/risk-factors/](/company/DIS/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1744489/000174448926000057/dis-20260627.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-05 Report date: 2026-06-27 Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations ORGANIZATION OF INFORMATION Management’s Discussion and Analysis provides a narrative of the Company’s financial performance and condition that should be read in conjunction with the accompanying financial statements. It includes the following sections: •Consolidated Results •Current Quarter Results Compared to Prior-Year Quarter •Current Nine-Month Period Results Compared to Prior-Year Nine-Month Period •Seasonality •Business Segment Results •Corporate and Unallocated Shared Expenses •Financial Condition •Market Risk •Commitments and Contingencies •Other Matters •Supplemental Guarantor Financial Information CONSOLIDATED RESULTS [[GREPCENT_TABLE]] [["","Quarter Ended","","% Change Better (Worse)","","Nine Months Ended","","% Change Better (Worse)"],["(in millions, except per share data)","June 27, 2026","","June 28, 2025","","","June 27, 2026","","June 28, 2025"],["Revenues:"],["Services","$","22,675","","","$","21,214","","","7 %","","$","68,565","","","$","64,520","","","6 %"],["Products","2,573","","","2,436","","","6 %","","7,832","","","7,441","","","5 %"],["Total revenues","25,248","","","23,650","","","7 %","","76,397","","","71,961","","","6 %"],["Costs and expenses:"],["Cost of services (exclusive of depreciation and amortization)","(13,674)","","","(13,034)","","","(5) %","","(43,094)","","","(40,201)","","","(7) %"],["Cost of products (exclusive of depreciation and amortization)","(1,432)","","","(1,498)","","","4 %","","(4,582)","","","(4,547)","","","(1) %"],["Selling, general, administrative and other","(3,968)","","","(4,141)","","","4 %","","(12,162)","","","(12,052)","","","(1) %"],["Depreciation and amortization","(1,414)","","","(1,332)","","","(6) %","","(4,135)","","","(3,932)","","","(5) %"],["Total costs and expenses","(20,488)","","","(20,005)","","","(2) %","","(63,973)","","","(60,732)","","","(5) %"],["Restructuring and impairment charges","(900)","","","(185)","","","(100) %","","(1,139)","","","(437)","","","(100) %"],["Interest expense, net","(298)","","","(324)","","","8 %","","(813)","","","(1,037)","","","22 %"],["Equity in the income of investees","83","","","75","","","11 %","","233","","","203","","","15 %"],["Income before income taxes","3,645","","","3,211","","","14 %","","10,705","","","9,958","","","8 %"],["Income taxes","(801)","","","2,732","","","nm","","(2,912)","","","2,030","","","nm"],["Net income","2,844","","","5,943","","","(52) %","","7,793","","","11,988","","","(35) %"],["Net income attributable to noncontrolling interests","(206)","","","(681)","","","70 %","","(506)","","","(897)","","","44 %"],["Net income attributable to Disney","$","2,638","","","$","5,262","","","(50) %","","$","7,287","","","$","11,091","","","(34) %"],["Diluted earnings per share attributable to Disney","$","1.51","","","$","2.92","","","(48) %","","$","4.12","","","$","6.12","","","(33) %"]] [[/GREPCENT_TABLE]] CURRENT QUARTER RESULTS COMPARED TO PRIOR-YEAR QUARTER Revenues for the quarter increased 7%, or $1.6 billion, to $25.2 billion; net income attributable to Disney decreased to $2.6 billion compared to $5.3 billion in the prior-year quarter; and diluted earnings per share (EPS) attributable to Disney decreased to $1.51 compared to $2.92 in the prior-year quarter. The net income and EPS decreases reflected the comparison to a non-cash tax benefit recognized upon a change in Hulu’s U.S. income tax classification in the prior-year quarter and, to a lesser extent, an impairment of our investment in A+E in the current quarter. These decreases were partially offset by higher operating 31 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued) income at Entertainment and Experiences in the current quarter and the comparison to a charge for a payment to acquire Hulu in the prior-year quarter (Hulu Charge). Revenues Service revenues for the quarter increased 7%, or $1.5 billion, to $22.7 billion, which included an approximate 2 percentage point favorable impact from the Fubo and NFL Transactions. Aside from this impact, service revenues increased due to growth in resorts and vacations and theme park admissions revenue and higher subscription and affiliate fees. Product revenues for the quarter increased 6%, or $0.1 billion, to $2.6 billion due to growth in parks & experiences merchandise, food and beverage revenue. Costs and expenses Cost of services for the quarter increased 5%, or $0.6 billion, to $13.7 billion, which included an approximate 2 percentage point unfavorable impact from the Fubo Transaction and, to a lesser extent, NFL Transaction. Aside from this impact, cost of services increased due to the impact of new guest offerings, inflation and increased volumes at our parks and experiences businesses. Selling, general, administrative and other costs decreased 4%, or $0.2 billion, to $4.0 billion due to lower marketing costs. Depreciation and amortization increased 6%, or $0.1 billion, to $1.4 billion primarily due to higher depreciation at Experiences, partially offset by lower amortization of intangible assets. Restructuring and impairment charges Charges in the current quarter were $812 million for an impairment of our investment in A+E and $88 million for severance. Charges in the prior-year quarter were $185 million primarily for an impairment of our investment in Tata Play Limited. Interest expense, net Interest expense, net is as follows: [[GREPCENT_TABLE]] [["","Quarter Ended"],["(in millions)","June 27, 2026","","June 28, 2025","","% Change Better (Worse)"],["Interest expense","$","(463)","","","$","(438)","","","(6) %"],["Interest income, investment income and other","165","","","114","","","45 %"],["Interest expense, net","$","(298)","","","$","(324)","","","8 %"]] [[/GREPCENT_TABLE]] The increase in interest expense was driven by higher average debt balances, partially offset by lower effective interest rates. The increase in interest income, investment income and other was due to a favorable comparison related to pension and postretirement benefit costs, other than service cost. Income Taxes [[GREPCENT_TABLE]] [["","Quarter Ended"],["","June 27, 2026","","June 28, 2025"],["Income before income taxes","$","3,645","","","$","3,211"],["Income tax expense (benefit)","801","","","(2,732)"],["Effective income tax rate","22.0","%","","(85.1)","%"]] [[/GREPCENT_TABLE]] The effective income tax rate was 22.0% in the current quarter compared to negative 85.1% in the prior-year quarter. The prior-year quarter included a $3.3 billion non-cash tax benefit recognized upon a change in Hulu’s U.S. income tax classification. 32 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued) Noncontrolling Interests [[GREPCENT_TABLE]] [["","Quarter Ended"],["(in millions)","June 27, 2026","","June 28, 2025","","% Change Better (Worse)"],["Net income attributable to noncontrolling interests","$","(206)","","$","(681)","","70 %"]] [[/GREPCENT_TABLE]] The decrease in net income attributable to noncontrolling interests was due to the Hulu Charge in the prior-year quarter. Net income attributable to noncontrolling interests is determined on income after royalties and management fees, financing costs and income taxes, as applicable. Certain Items Impacting Results in the Quarter Results for the quarter ended June 27, 2026 were impacted by the following: •Restructuring and impairment charges of $900 million •Acquisition Amortization of $334 million Results for the quarter ended June 28, 2025 were impacted by the following: •A $3,277 million non-cash tax benefit recognized upon a change in Hulu’s U.S. income tax classification recognized in “Income taxes” and $477 million Hulu Charge recognized in “Net income attributable to noncontrolling interest” (Hulu Transaction Impacts) •Acquisition Amortization of $395 million •Restructuring and impairment charges of $185 million A summary of the impact of these items on EPS is as follows: [[GREPCENT_TABLE]] [["(in millions, except per share data)","Pre-Tax Income (Loss)","","Tax Benefit (Expense)(1)","","After-Tax Income (Loss)","","EPS Favorable (Adverse)(2)"],["Quarter Ended June 27, 2026:"],["Restructuring and impairment charges","$","(900)","","","$","175","","","$","(725)","","","$","(0.41)"],["Acquisition Amortization","(334)","","","76","","","(258)","","","(0.13)"],["Total","$","(1,234)","","","$","251","","","$","(983)","","","$","(0.55)"],["Quarter Ended June 28, 2025:"],["Hulu Transaction Impacts","$","\u2014","","","$","3,277","","","$","3,277","","","$","1.56"],["Acquisition Amortization","(395)","","","92","","","(303)","","","(0.16)"],["Restructuring and impairment charges","(185)","","","43","","","(142)","","","(0.08)"],["Total","$","(580)","","","$","3,412","","","$","2,832","","","$","1.31"]] [[/GREPCENT_TABLE]] (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. CURRENT NINE-MONTH PERIOD RESULTS COMPARED TO PRIOR-YEAR NINE-MONTH PERIOD Revenues for the current period increased $4.4 billion, to $76.4 billion; net income attributable to Disney decreased $3.8 billion, to $7.3 billion; and EPS decreased to $4.12 from $6.12 in the prior-year period. The net income and EPS decreases were due to the comparison to a tax benefit recognized related to a change in Hulu’s U.S. income tax classification, a favorable resolution of a tax matter in the prior-year period, and an impairment of our investment in A+E in the current period. These decreases were partially offset by higher operating income at Experiences in the current period and the comparison to the Hulu Charge in the prior-year period. Revenues Service revenues for the current period increased 6%, or $4.0 billion to $68.6 billion, which included an approximate 1 percentage point net favorable impact from the Fubo, NFL and Star India Transactions. Aside from this impact, service revenues increased due to growth in resorts and vacations and theme park admissions revenue, higher subscription and affiliate fees and, to a lesser extent, an increase in content sales. 33 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (continued) Product revenues for the current period increased 5%, or $0.4 billion, to $7.8 billion, due to growth in parks & experiences merchandise, food and beverage revenue. Costs and expenses Cost of services for the current period increased 7%, or $2.9 billion, to $43.1 billion, which included an approximate 1 percentage point net unfavorable impact from the Fubo, NFL and Star India Transactions. Aside from this impact, cost of services increased due to higher programming and production costs and, to a lesser extent, the impact of new guest offerings, inflation and increased volumes at our parks and experiences businesses. Selling, general, administrative and other costs increased 1%, or $0.1 billion, to $12.2 billion due to higher marketing costs, partially offset by the comparison to legal settlements in the prior-year period. Depreciation and amortization increased 5%, or $0.2 billion, to $4.1 billion, driven by higher depreciation at Experiences and Entertainment, partially offset by lower amortization of intangible assets. Restructuring and impairment charges Charges in the current period were $959 million for impairments of our investment in A+E and $180 million for severance. Charges in the prior-year period were $185 million primarily for an impairment of our investment in Tata Play Limited, $143 million for impairment of goodwill related to Star India and $109 million for content impairments. Interest expense, net Interest expense, net is as follows: [[GREPCENT_TABLE [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1744489/000174448925000155/dis-20250927.htm Complete FY 2025 MD&A: /company/DIS/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2025-11-13 Report date: 2025-09-27 ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations CONSOLIDATED RESULTS ($ in millions, except per share data) [[GREPCENT_TABLE]] [["","2025","","2024","","","","% ChangeBetter (Worse)"],["Revenues:"],["Services","$","84,588","","","$","81,841","","","","","3 %"],["Products","9,837","","","9,520","","","","","3 %"],["Total revenues","94,425","","","91,361","","","","","3 %"],["Costs and expenses:"],["Cost of services (exclusive of depreciation and amortization)","(52,677)","","","(52,509)","","","","","\u2014 %"],["Cost of products (exclusive of depreciation and amortization)","(6,089)","","","(6,189)","","","","","2 %"],["Selling, general, administrative and other","(16,501)","","","(15,759)","","","","","(5) %"],["Depreciation and amortization","(5,326)","","","(4,990)","","","","","(7) %"],["Total costs and expenses","(80,593)","","","(79,447)","","","","","(1) %"],["Restructuring and impairment charges","(819)","","","(3,595)","","","","","77 %"],["Other expense","\u2014","","","(65)","","","","","100 %"],["Interest expense, net","(1,305)","","","(1,260)","","","","","(4) %"],["Equity in the income of investees, net","295","","","575","","","","","(49) %"],["Income before income taxes","12,003","","","7,569","","","","","59 %"],["Income taxes","1,428","","","(1,796)","","","","","nm"],["Net income","13,431","","","5,773","","","","","100 %"],["Net income attributable to noncontrolling interests","(1,027)","","","(801)","","","","","(28) %"],["Net income attributable to Disney","$","12,404","","","$","4,972","","","","","100 %"],["Diluted earnings per share attributable to Disney","$","6.85","","","$","2.72","","","","","100 %"]] [[/GREPCENT_TABLE]] Organization of Information Management’s Discussion and Analysis provides a narrative on the Company’s financial performance and condition that should be read in conjunction with the accompanying financial statements. It includes the following sections: •Consolidated Results and Non-Segment Items •Business Segment Results •Corporate and Unallocated Shared Expenses •Liquidity and Capital Resources •Trends and Uncertainties •Critical Accounting Policies and Estimates •Entertainment DTC Product Descriptions and Key Definitions •Supplemental Guarantor Financial Information In Item 7, we discuss fiscal 2025 and 2024 results and comparisons of fiscal 2025 results to fiscal 2024 results. Discussions of fiscal 2023 results and comparisons of fiscal 2024 results to fiscal 2023 results can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2024. Star India On November 14, 2024, the Company and RIL completed the Star India Transaction (see Note 4 to the Consolidated Financial Statements). The Company recognizes its 37% share of the India joint venture’s 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. 32 TABLE OF CONTENTS CONSOLIDATED RESULTS AND NON-SEGMENT ITEMS Revenues for fiscal 2025 increased 3%, or $3.1 billion, to $94.4 billion; net income attributable to Disney increased $7.4 billion to income of $12.4 billion compared to $5.0 billion in the prior year; and diluted earnings per share (EPS) from continuing operations attributable to Disney increased to $6.85 compared to $2.72 in the prior year. The net income and EPS increases were due to a lower effective tax rate in the current year compared to the prior year and the comparison to impairments related to the Star India Transaction and goodwill in the prior year. In addition, the increases in net income and EPS were due to higher operating income at Entertainment and Experiences. The lower effective tax rate was due to a non-cash tax benefit recognized in the current year upon a change in Hulu’s U.S. income tax classification (see Note 9 to the Consolidated Financial Statements). Revenues Service revenues for fiscal 2025 increased 3%, or $2.7 billion, to $84.6 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, growth at our parks and experiences businesses and an increase in content sales. Product revenues for fiscal 2025 increased 3%, or $0.3 billion, to $9.8 billion, driven by growth at our parks and experiences businesses, partially offset by lower physical home entertainment distribution revenue due to a shift to licensing of physical distribution rights to third parties. Costs and expenses Cost of services for fiscal 2025 increased $0.2 billion to $52.7 billion, which included an approximate 4 percentage point decrease from 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 at our parks and experiences businesses. Cost of products for fiscal 2025 decreased 2%, or $0.1 billion to $6.1 billion, due to a shift to licensing of physical home entertainment distribution, partially offset by the impact of inflation at our theme parks and resorts. Selling, general, administrative and other costs for fiscal 2025 increased 5%, or $0.7 billion, to $16.5 billion, which included approximately 2 percentage point decrease from the Star India Transaction. Aside from this impact, selling, general, administrative and other costs increased driven by higher marketing costs. Depreciation and amortization for fiscal 2025 increased 7%, or $0.3 billion, to $5.3 billion primarily due to higher depreciation at our parks and experiences businesses. Restructuring and Impairment Charges [[GREPCENT_TABLE]] [["($ in millions)","2025","","2024"],["Impairments:"],["Equity investments(1)","$","635","","","$","165"],["Content(2)","109","","","187"],["Star India","143","","","1,545"],["Goodwill(3)","\u2014","","","1,287"],["Retail assets","\u2014","","","328"],["Severance","\u2014","","","83"],["Other","(68)","","","\u2014"],["","$","819","","","$","3,595"]] [[/GREPCENT_TABLE]] (1)Primarily related to A+E (fiscal 2025 and 2024) and Tata Play Limited (fiscal 2025). (2)Related to strategic changes in our approach to content curation. (3)Related to general entertainment linear networks. Other expense In the prior year, the Company recorded a charge of $65 million related to a legal ruling. 33 TABLE OF CONTENTS Interest Expense, net [[GREPCENT_TABLE]] [["($ in millions)","","2025","","2024","","% Change Better (Worse)"],["Interest expense","","$","(1,812)","","","$","(2,070)","","","12 %"],["Interest income, investment income and other","","507","","","810","","","(37) %"],["Interest expense, net","","$","(1,305)","","","$","(1,260)","","","(4) %"]] [[/GREPCENT_TABLE]] 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 was driven by a lower benefit from pension and postretirement benefit costs, other than service cost, and the impact of lower average cash and cash equivalent balances and lower average rates. Equity in the Income of Investees Equity in the income of investees decreased $280 million to $295 million in the current year from $575 million in the prior year due to losses from the India joint venture in the current year and lower income from A+E. Effective Income Tax Rate [[GREPCENT_TABLE]] [["($ in millions)","2025","","2024"],["Income before income taxes","$","12,003","","","$","7,569"],["Income tax expense","(1,428)","","","1,796"],["Effective income tax rate","(11.9)","%","","23.7%"]] [[/GREPCENT_TABLE]] The effective income tax rate was negative 11.9% in the current year compared to a positive effective income tax rate of 23.7% in the prior year. Items impacting the effective income tax rate include the following: •The current year included a non-cash tax benefit of approximately 26 percentage points due to a change in Hulu’s U.S. income tax classification •The prior year reflected an unfavorable impact of approximately 6 percentage points from impairments that are not tax deductible •The current and prior year reflected favorable adjustments related to prior-year tax matters of 10 percentage points and 3 percentage points, respectively •The current year included a non-cash tax expense of approximately 2 percentage points and the prior year included a non-cash tax benefit of approximately 1 percentage point in connection with the Star India Transaction Noncontrolling Interests [[GREPCENT_TABLE]] [["($ in millions)","","2025","","2024","","% Change Better (Worse)"],["Net income attributable to noncontrolling interests","","$","(1,027)","","$","(801)","","(28) %"]] [[/GREPCENT_TABLE]] 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. Net income attributable to noncontrolling interests is determined on income after royalties and management fees, financing costs and income taxes, as applicable. Certain Items Impacting Results in the Year Results for fiscal 2025 were impacted by the following: •Hulu Transaction Impacts consisting of a $3,277 million benefit in “Income taxes” and a $462 million charge in “Net income attributable to noncontrolling interests” •TFCF and Hulu acquisition amortization of $1,576 million •Favorable resolution of a prior-year tax matter of $1,016 million •Restructuring and impairment charges of $819 million ($748 million after tax) and a non-cash tax expense of $244 million related to the Star India Transaction 34 TABLE OF CONTENTS Results for fiscal 2024 were impacted by the following: •Restructuring and impairment charges of $3,595 million •TFCF and Hulu acquisition amortization of $1,677 million •Other expense of $65 million related to a legal ruling •Favorable adjustments related to prior year tax matters of $418 million A summary of the impact of these items on EPS is as follows: [[GREPCENT_TABLE]] [["($ in millions, except per share data)","Pre-Tax Income (Loss)","","Tax Benefit (Expense)(1)","","After-Tax Income (Loss)","","EPS Favorable (Adverse)(2)"],["Year Ended September 27, 2025:"],["Hulu Transaction Impacts","$","\u2014","","","$","3,277","","","$","3,277","","","$","1.55"],["Resolution of a prior-year tax matter","\u2014","","","1,016","","","1,016","","","0.56"],["TFCF and Hulu acquisition amortization(3)","(1,576)","","","366","","(1,210)","","","(0.64)"],["Restructuring and impairment charges","(819)","","","(173)","","","(992)","","","(0.55)"],["Total","$","(2,395)","","","$","4,486","","","$","2,091","","","$","0.92"],["Year Ended September 28, 2024:"],["Restructuring and impairment charges","$","(3,595)","","","$","293","","","$","(3,302)","","","$","(1.78)"],["TFCF and Hulu acquisition amortization(3)","(1,677)","","","391","","(1,286)","","","(0.68)"],["Other expense","(65)","","","11","","(54)","","","(0.03)"],["Favorable adjustments related to prior-year tax matters","\u2014","","","418","","","418","","","0.23"],["Total","$","(5,337)","","","$","1,113","","","$","(4,224)","","","$","(2.26)"]] [[/GREPCENT_TABLE]] (1)Tax benefit (expense) is determined using the tax rate applicable to the individual item. (2)EPS is net of noncontrolling interest, where applicable. Total may not equal the sum of the column due to rounding. (3)Includes amortization of intangibles related to TFCF equity investees. BUSINESS SEGMENT RESULTS The Company evaluates the performance of its operating segments based on segment revenue and segment operating income. Below is a discussion of the major revenue and e [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/DIS/mda/fy2025/ All MD&A years: /company/DIS/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/DIS/mda/fy2024/): filed 2024-11-14; accession 0001744489-24-000276 (https://www.sec.gov/Archives/edgar/data/1744489/000174448924000276/dis-20240928.htm) - [FY 2023 MD&A](/company/DIS/mda/fy2023/): filed 2023-11-21; accession 0001744489-23-000216 (https://www.sec.gov/Archives/edgar/data/1744489/000174448923000216/dis-20230930.htm) - [FY 2022 MD&A](/company/DIS/mda/fy2022/): filed 2022-11-29; accession 0001744489-22-000213 (https://www.sec.gov/Archives/edgar/data/1744489/000174448922000213/dis-20221001.htm) - [FY 2021 MD&A](/company/DIS/mda/fy2021/): filed 2021-11-24; accession 0001744489-21-000220 (https://www.sec.gov/Archives/edgar/data/1744489/000174448921000220/dis-20211002.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 7990 Services-Miscellaneous Amusement & Recreation) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/DIS.md · JSON record: /company/DIS.json · verified financials: /company/DIS/financials.json / /company/DIS/financials.csv · machine TOC for the whole site: /llms.txt