Disney Reports Third Quarter and Nine Months Earnings for Fiscal 2025
Burbank, CA — The Walt Disney Company reported Q3 Financial Results
- Revenue increased 2% for Q3 to $23.7 billion from $23.2 billion in 2024
- Total segment operating income(1) increased 8% for Q3 to $4.6 billion from $4.2 billion in Q3 fiscal 2024
- Diluted earnings per share (EPS) for Q3 improved to $2.92 from $1.43 in Q3 fiscal 2024, and adjusted EPS(1) increased 16% for Q3 to $1.61 from $1.39 in Q3 fiscal 2024
Key Points:
- Entertainment: Segment operating income of $1.0 billion, a $179 million decrease versus Q3 fiscal 2024
- Direct-to-Consumer revenue increased 6%, which included an adverse impact of 3 percentage points due to Disney+ Hotstar being included in the prior-year quarter’s results
- Direct-to-Consumer operating income increased $365 million to $346 million
- 183 million Disney+ and Hulu subscriptions, an increase of 2.6 million versus Q2 fiscal 2025
- 128 million Disney+ subscribers, an increase of 1.8 million versus Q2 fiscal 2025
- Linear Networks operating income declined $269 million versus Q3 fiscal 2024 largely driven by the Star India transaction
- Content Sales/Licensing and Other declined $275 million versus Q3 fiscal 2024, reflecting the performance of titles in the quarter compared to the strong performance of Inside Out 2 in the prior-year quarter
- Sports: Segment operating income of $1.0 billion, an increase of $235 million versus Q3 fiscal 2024
- Year-over-year increase reflects the impact of a $314 million loss at Star India in Q3 fiscal 2024
- Domestic ESPN operating income declined 7% versus the prior-year quarter primarily due to higher programming and production costs reflecting contractual rate increases for the NBA and college sports
- Domestic advertising revenue growth of 3%
- Experiences: Segment operating income of $2.5 billion, an increase of $294 million versus Q3 fiscal 2024
- Operating income in the quarter reflects a ~$40 million benefit from timing of the Easter holiday, and a ~$30 million impact from pre-opening expenses at Disney Cruise Line
- Domestic Parks & Experiences operating income grew 22% to $1.7 billion
|
|
||
|
(1) |
Total segment operating income and diluted EPS excluding certain items (also referred to as adjusted EPS) are non-GAAP financial measures. The most comparable GAAP measures are income before income taxes and diluted EPS, respectively. See the discussion on pages 17 through 21 for how we define and calculate these measures and a quantitative reconciliation thereof to the most directly comparable GAAP measures. |
|
Guidance and Outlook:
- Q4 Fiscal 2025:
- Total Disney+ and Hulu subscriptions: Increase of more than 10 million compared to Q3 fiscal 2025, with the majority of the increase coming from Hulu as a result of expanded Charter deal
- Disney+ subscribers: Modest increase in Disney+ subscribers compared to Q3 fiscal 2025
- Fiscal Year 2025:
- Adjusted EPS(1) of $5.85, an increase of 18% over fiscal 2024
- Entertainment Direct-to-Consumer: Operating income of $1.3 billion
- Entertainment: Double-digit percentage segment operating income growth
- Sports: 18% segment operating income growth
- Experiences: 8% segment operating income growth
- Disney Cruise Line pre-opening expense of ~$185 million, with ~$50 million in Q4 fiscal 2025
- Equity loss from India JV of ~$200 million driven by purchase accounting amortization
Message From Our CEO:
“We are pleased with our creative success and financial performance in Q3 as we continue to execute across our strategic priorities,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “The company is taking major steps forward in streaming with the upcoming launch of ESPN’s direct-to-consumer service, our just-announced plans with the NFL, and our forthcoming integration of Hulu into Disney+, creating a truly differentiated streaming proposition that harnesses the highest-caliber brands and franchises, general entertainment, family programming, news, and industry-leading sports content. And we have more expansions underway around the world in our parks and experiences than at any other time in our history. With ambitious plans ahead for all our businesses, we’re not done building, and we are excited for Disney’s future.”
|
|
||
|
(1) |
Diluted EPS excluding certain items (also referred to as adjusted EPS) is a non-GAAP financial measure. The most comparable GAAP measure is diluted EPS. See the discussion on pages 17 through 21 for how we define and calculate this measure and why the Company is not providing the forward-looking quantitative reconciliation of diluted EPS excluding certain items to the most comparable GAAP measure. |
|
SUMMARIZED FINANCIAL RESULTS
The following table summarizes third quarter results for fiscal 2025 and 2024:
|
|
Quarter Ended |
|
|
|
Nine Months Ended |
|
|
||||||||||
|
($ in millions, except per share amounts) |
June 28, 2025 |
|
June 29, |
|
Change |
|
June 28, 2025 |
|
June 29, 2024 |
|
Change |
||||||
|
Revenues |
$ |
23,650 |
|
$ |
23,155 |
|
2 |
% |
|
$ |
71,961 |
|
$ |
68,787 |
|
5 |
% |
|
Income before income taxes |
$ |
3,211 |
|
$ |
3,093 |
|
4 |
% |
|
$ |
9,958 |
|
$ |
6,621 |
|
50 |
% |
|
Total segment operating income(1) |
$ |
4,575 |
|
$ |
4,225 |
|
8 |
% |
|
$ |
14,071 |
|
$ |
11,946 |
|
18 |
% |
|
Diluted EPS |
$ |
2.92 |
|
$ |
1.43 |
|
>100 % |
|
$ |
6.12 |
|
$ |
2.46 |
|
>100 % |
||
|
Diluted EPS excluding certain items(1) |
$ |
1.61 |
|
$ |
1.39 |
|
16 |
% |
|
$ |
4.82 |
|
$ |
3.83 |
|
26 |
% |
|
Cash provided by operations |
$ |
3,669 |
|
$ |
2,602 |
|
41 |
% |
|
$ |
13,627 |
|
$ |
8,453 |
|
61 |
% |
|
Free cash flow(1) |
$ |
1,889 |
|
$ |
1,237 |
|
53 |
% |
|
$ |
7,519 |
|
$ |
4,530 |
|
66 |
% |
|
(1) |
Total segment operating income, diluted EPS excluding certain items and free cash flow are non-GAAP financial measures. The most comparable GAAP measures are income before income taxes, diluted EPS and cash provided by operations, respectively. See the discussion on pages 17 through 21 for how we define and calculate these measures and a reconciliation thereof to the most directly comparable GAAP measures. |
|
SUMMARIZED SEGMENT FINANCIAL RESULTS
The following table summarizes third quarter segment revenue and operating income for fiscal 2025 and 2024:
|
|
Quarter Ended |
|
|
|
Nine Months Ended |
|
|
||||||||||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
Change |
|
June 28, 2025 |
|
June 29, 2024 |
|
Change |
||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Entertainment |
$ |
10,704 |
|
|
$ |
10,580 |
|
|
1 |
% |
|
$ |
32,258 |
|
|
$ |
30,357 |
|
|
6 |
% |
|
Sports |
|
4,308 |
|
|
|
4,558 |
|
|
(5 |
)% |
|
|
13,692 |
|
|
|
13,705 |
|
|
— |
% |
|
Experiences |
|
9,086 |
|
|
|
8,386 |
|
|
8 |
% |
|
|
27,390 |
|
|
|
25,911 |
|
|
6 |
% |
|
Eliminations(1) |
|
(448 |
) |
|
|
(369 |
) |
|
(21 |
)% |
|
|
(1,379 |
) |
|
|
(1,186 |
) |
|
(16 |
)% |
|
Total revenues |
$ |
23,650 |
|
|
$ |
23,155 |
|
|
2 |
% |
|
$ |
71,961 |
|
|
$ |
68,787 |
|
|
5 |
% |
|
Segment operating income: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Entertainment |
$ |
1,022 |
|
|
$ |
1,201 |
|
|
(15 |
)% |
|
$ |
3,983 |
|
|
$ |
2,856 |
|
|
39 |
% |
|
Sports |
|
1,037 |
|
|
|
802 |
|
|
29 |
% |
|
|
1,971 |
|
|
|
1,477 |
|
|
33 |
% |
|
Experiences |
|
2,516 |
|
|
|
2,222 |
|
|
13 |
% |
|
|
8,117 |
|
|
|
7,613 |
|
|
7 |
% |
|
Total segment operating income(2) |
$ |
4,575 |
|
|
$ |
4,225 |
|
|
8 |
% |
|
$ |
14,071 |
|
|
$ |
11,946 |
|
|
18 |
% |
|
(1) |
Reflects fees paid by (a) Hulu to ESPN and the Entertainment linear networks business for the right to air their networks on Hulu Live and (b) ABC Network and Disney+ to ESPN to program certain sports content on ABC Network and Disney+. | |
|
(2) |
Total segment operating income is a non-GAAP financial measure. The most comparable GAAP measure is income before income taxes. See the discussion on pages 17 through 21. | |
DISCUSSION OF THIRD QUARTER SEGMENT RESULTS
Star India
On November 14, 2024, the Company and Reliance Industries Limited (RIL) completed the formation (the Star India Transaction) of a joint venture (India joint venture) that combines the Company’s Star-branded and other general entertainment and sports television channels and direct-to-consumer Disney+ Hotstar service in India (Star India) with certain media and entertainment businesses controlled by RIL. RIL has an effective 56% controlling interest in the joint venture with 37% held by the Company and 7% held by a third party investment company.
Upon completion of the Star India Transaction, the Company began recognizing its 37% share of the India joint venture’s results in “Equity in the income of investees.” Star India results through November 14, 2024 are consolidated in the Company’s financial results.
Entertainment
Revenue and operating income for the Entertainment segment were as follows:
|
|
Quarter Ended |
|
Change |
|
Nine Months Ended |
|
|
|||||||||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
|
June 28, 2025 |
|
June 29, 2024 |
|
Change |
||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Linear Networks |
$ |
2,271 |
|
|
$ |
2,663 |
|
|
(15 |
)% |
|
$ |
7,306 |
|
$ |
8,231 |
|
|
(11 |
)% |
|
Direct-to-Consumer |
|
6,176 |
|
|
|
5,805 |
|
|
6 |
% |
|
|
18,366 |
|
|
16,993 |
|
|
8 |
% |
|
Content Sales/Licensing and Other |
|
2,257 |
|
|
|
2,112 |
|
|
7 |
% |
|
|
6,586 |
|
|
5,133 |
|
|
28 |
% |
|
|
$ |
10,704 |
|
|
$ |
10,580 |
|
|
1 |
% |
|
$ |
32,258 |
|
$ |
30,357 |
|
|
6 |
% |
|
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Linear Networks |
$ |
697 |
|
|
$ |
966 |
|
|
(28 |
)% |
|
$ |
2,564 |
|
$ |
2,954 |
|
|
(13 |
)% |
|
Direct-to-Consumer |
|
346 |
|
|
|
(19 |
) |
|
nm |
|
|
975 |
|
|
(110 |
) |
|
nm |
||
|
Content Sales/Licensing and Other |
|
(21 |
) |
|
|
254 |
|
|
nm |
|
|
444 |
|
|
12 |
|
|
>100 % |
||
|
|
$ |
1,022 |
|
|
$ |
1,201 |
|
|
(15 |
)% |
|
$ |
3,983 |
|
$ |
2,856 |
|
|
39 |
% |
The decrease in Entertainment operating income in the current quarter compared to the prior-year quarter was due to lower results at Content Sales/Licensing and Other and Linear Networks, partially offset by an improvement at Direct-to-Consumer.
Linear Networks
Linear Networks revenues and operating income were as follows:
|
|
Quarter Ended |
|
Change |
|||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
||||
|
Revenue |
|
|
|
|
|
|||
|
Domestic |
$ |
2,052 |
|
$ |
2,145 |
|
(4 |
)% |
|
International |
|
219 |
|
|
518 |
|
(58 |
)% |
|
|
$ |
2,271 |
|
$ |
2,663 |
|
(15 |
)% |
|
Operating income |
|
|
|
|
|
|||
|
Domestic |
$ |
587 |
|
$ |
682 |
|
(14 |
)% |
|
International |
|
12 |
|
|
157 |
|
(92 |
)% |
|
Equity in the income of investees |
|
98 |
|
|
127 |
|
(23 |
)% |
|
|
$ |
697 |
|
$ |
966 |
|
(28 |
)% |
Domestic
Domestic operating income in the current quarter decreased compared to the prior-year quarter due to:
- A decline in advertising revenue due to a decrease in average viewership and lower rates
- Lower affiliate revenue attributable to fewer subscribers, partially offset by higher effective rates
- Programming and production costs were comparable to the prior-year quarter as higher fees paid to the Sports segment to program sports on ABC were offset by lower costs for non-sports programming
International
The decrease in international operating income was due to the Star India Transaction.
Equity in the Income of Investees
Income from equity investees decreased due to lower income from A+E Television Networks (A+E) attributable to decreases in affiliate and advertising revenue, partially offset by lower marketing costs.
Direct-to-Consumer
Direct-to-Consumer revenues and operating income (loss) were as follows:
|
|
Quarter Ended |
|
Change |
||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
|||||
|
Revenue |
$ |
6,176 |
|
$ |
5,805 |
|
|
6 |
% |
|
Operating income (loss) |
$ |
346 |
|
$ |
(19 |
) |
|
nm |
|
The improvement in operating results in the current quarter compared to the prior-year quarter was due to:
- Subscription revenue growth attributable to:
- Higher effective rates, reflecting increases in pricing
- An increase in subscribers
- The absence of Star India subscription revenue in the current quarter due to the Star India Transaction
- An unfavorable foreign exchange impact
- A decrease in programming and production costs reflecting:
- The comparison to International Cricket Council (ICC) programming, which was carried on Disney+ Hotstar in the prior-year quarter
- An increase in hours of content available on the services
- Higher subscriber-based license fees attributable to more subscribers to bundles with third-party offerings
- Lower marketing costs
- Higher technology and distribution costs
- A decrease in advertising revenue due to lower rates and the comparison to ICC programming in the prior-year quarter, partially offset by more impressions
Key Metrics(1) – Third Quarter of Fiscal 2025 Comparison to Second Quarter of Fiscal 2025
The following tables and related discussion are on a sequential quarter basis.
Paid subscribers at:
|
(in millions) |
June 28, 2025 |
|
March 29, 2025 |
|
Change |
|
|
Disney+ |
|
|
|
|
|
|
|
Domestic (U.S. and Canada) |
57.8 |
|
57.8 |
|
— |
% |
|
International |
69.9 |
|
68.2 |
|
2 |
% |
|
Total Disney+(2) |
127.8 |
|
126.0 |
|
1 |
% |
|
|
|
|
|
|
|
|
|
Hulu |
|
|
|
|
|
|
|
SVOD Only |
51.2 |
|
50.3 |
|
2 |
% |
|
Live TV + SVOD |
4.3 |
|
4.4 |
|
(2 |
)% |
|
Total Hulu(2) |
55.5 |
|
54.7 |
|
1 |
% |
Average Monthly Revenue Per Paid Subscriber for the quarter ended:
|
|
June 28, 2025 |
|
March 29, 2025 |
|
Change |
|||
|
Disney+ |
|
|
|
|
|
|||
|
Domestic (U.S. and Canada) |
$ |
8.09 |
|
$ |
8.06 |
|
— |
% |
|
International |
|
7.67 |
|
|
7.52 |
|
2 |
% |
|
Disney+ |
|
7.86 |
|
|
7.77 |
|
1 |
% |
|
|
|
|
|
|
|
|||
|
Hulu |
|
|
|
|
|
|||
|
SVOD Only |
|
12.40 |
|
|
12.36 |
|
— |
% |
|
Live TV + SVOD |
|
100.27 |
|
|
99.94 |
|
— |
% |
|
(1) |
See discussion on page 16—DTC Product Descriptions and Key Definitions | |
|
(2) |
Total may not equal the sum of the column due to rounding | |
Domestic Disney+ average monthly revenue per paid subscriber increased from $8.06 to $8.09 as higher advertising revenue was largely offset by the impact of subscriber mix shifts.
International Disney+ average monthly revenue per paid subscriber increased from $7.52 to $7.67 due to a favorable foreign exchange impact and increases in pricing, partially offset by the impact of subscriber mix shifts.
Hulu SVOD Only average monthly revenue per paid subscriber increased from $12.36 to $12.40 as higher advertising revenue was largely offset by the impact of subscriber mix shifts.
Hulu Live TV + SVOD average monthly revenue per paid subscriber increased from $99.94 to $100.27 due to higher advertising revenue.
Content Sales/Licensing and Other
Content Sales/Licensing and Other revenues and operating income (loss) were as follows:
|
|
Quarter Ended |
|
Change |
||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
|||||
|
Revenue |
$ |
2,257 |
|
|
$ |
2,112 |
|
7 |
% |
|
Operating income (loss) |
$ |
(21 |
) |
|
$ |
254 |
|
nm |
|
The decrease in operating results was due to:
- Lower theatrical distribution results. The current quarter reflected the release of Elio, Thunderbolts* and Lilo & Stitch, while the prior-year quarter included the release of Inside Out 2.
- Higher film cost impairments in the current quarter
Sports
Sports revenues and operating income (loss) were as follows:
|
|
Quarter Ended |
|
Change |
|||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
||||||
|
Revenue |
|
|
|
|
|
|||||
|
ESPN |
|
|
|
|
|
|||||
|
Domestic |
$ |
3,929 |
|
|
$ |
3,908 |
|
|
1 |
% |
|
International |
|
379 |
|
|
|
371 |
|
|
2 |
% |
|
|
|
4,308 |
|
|
|
4,279 |
|
|
1 |
% |
|
Star India |
|
— |
|
|
|
279 |
|
|
(100 |
)% |
|
|
$ |
4,308 |
|
|
$ |
4,558 |
|
|
(5 |
)% |
|
Operating income (loss) |
|
|
|
|
|
|||||
|
ESPN |
|
|
|
|
|
|||||
|
Domestic |
$ |
1,014 |
|
|
$ |
1,085 |
|
|
(7 |
)% |
|
International |
|
(3 |
) |
|
|
5 |
|
|
nm |
|
|
|
|
1,011 |
|
|
|
1,090 |
|
|
(7 |
)% |
|
Star India |
|
— |
|
|
|
(314 |
) |
|
100 |
% |
|
Equity in the income of investees |
|
26 |
|
|
|
26 |
|
|
— |
% |
|
|
$ |
1,037 |
|
|
$ |
802 |
|
|
29 |
% |
Domestic ESPN
The decrease in domestic ESPN operating results in the current quarter compared to the prior-year quarter reflected:
- An increase in programming and production costs primarily due to:
- Higher NBA and college sports rights costs reflecting contractual rate increases
- The absence of NHL Stanley Cup Finals rights costs in the current quarter. We have the rights to air the Stanley Cup Finals every other year.
- An increase in revenue attributable to:
- Higher fees received from the Entertainment segment to program sports content on ABC
- Advertising revenue growth due to increases in rates, partially offset by lower average viewership
- A decrease in affiliate revenue reflecting fewer subscribers, largely offset by higher effective rates
- Lower Ultimate Fighting Championship pay-per-view fees due to lower average buys per event
Star India
The operating loss in Star India in the prior-year quarter reflected Indian Premier League and ICC cricket programming.
Key Metrics(1) – Third Quarter of Fiscal 2025 Comparison to Second Quarter of Fiscal 2025
The following table is on a sequential quarter basis.
|
|
June 28, 2025 |
|
March 29, 2025 |
|
Change |
|||
|
Paid subscribers at: (in millions) |
|
24.1 |
|
|
24.1 |
|
— |
% |
|
Average Monthly Revenue Per Paid Subscriber for the quarter ended: |
$ |
6.40 |
|
$ |
6.58 |
|
(3 |
)% |
|
(1) |
See discussion on page 16—DTC Product Descriptions and Key Definitions |
ESPN+ average monthly revenue per paid subscriber decreased from $6.58 to 6.40 due to lower advertising revenue.
Experiences
Experiences revenues and operating income were as follows:
|
|
Quarter Ended |
|
Change |
|||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
||||
|
Revenue |
|
|
|
|
|
|||
|
Parks & Experiences |
|
|
|
|
|
|||
|
Domestic |
$ |
6,403 |
|
$ |
5,820 |
|
10 |
% |
|
International |
|
1,691 |
|
|
1,602 |
|
6 |
% |
|
Consumer Products |
|
992 |
|
|
964 |
|
3 |
% |
|
|
$ |
9,086 |
|
$ |
8,386 |
|
8 |
% |
|
Operating income |
|
|
|
|
|
|||
|
Parks & Experiences |
|
|
|
|
|
|||
|
Domestic |
$ |
1,650 |
|
$ |
1,347 |
|
22 |
% |
|
International |
|
422 |
|
|
435 |
|
(3 |
)% |
|
Consumer Products |
|
444 |
|
|
440 |
|
1 |
% |
|
|
$ |
2,516 |
|
$ |
2,222 |
|
13 |
% |
Domestic Parks and Experiences
Operating results at our domestic parks and experiences increased compared to the prior-year quarter due to growth at our domestic parks and resorts and, to a lesser extent, Disney Cruise Line reflecting:
- An increase in guest spending due to higher spending at our theme parks
- Higher volumes attributable to increases in passenger cruise days and occupied room nights. Additional passenger cruise days reflected the launch of the Disney Treasure in the first quarter of the current year
- Increased costs primarily due to new guest offerings, including the fleet expansion at Disney Cruise Line
OTHER FINANCIAL INFORMATION
Corporate and Unallocated Shared Expenses
Corporate and unallocated shared expenses increased $82 million for the quarter, from $328 million to $410 million, primarily due to a legal settlement, timing of allocations to the segments and higher compensation costs, partially offset by a gain on a land sale.
Restructuring and Impairment Charges
In the current quarter, the Company recorded charges of $185 million primarily for an impairment of an equity investment.
Other Expense
In the prior-year quarter, the Company recorded a charge of $65 million related to a legal ruling.
Interest Expense, net
Interest expense, net was as follows:
|
|
Quarter Ended |
|
|
|||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
Change |
|||||
|
Interest expense |
$ |
(438 |
) |
|
$ |
(509 |
) |
|
14 |
% |
|
Interest income, investment income and other |
|
114 |
|
|
|
167 |
|
|
(32 |
)% |
|
Interest expense, net |
$ |
(324 |
) |
|
$ |
(342 |
) |
|
5 |
% |
The decrease in interest expense was due to lower average debt balances and rates, partially offset by a decrease in capitalized interest.
The decrease in interest income, investment income and other was due to an unfavorable comparison related to pension and postretirement benefit costs, other than service cost.
Equity in the Income of Investees
Equity in the income of investees was as follows:
|
|
Quarter Ended |
|
|
|||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
Change |
|||||
|
Amounts included in segment results: |
|
|
|
|
|
|||||
|
Entertainment |
$ |
102 |
|
|
$ |
123 |
|
|
(17 |
)% |
|
Sports |
|
26 |
|
|
|
26 |
|
|
— |
% |
|
Equity in the loss of India joint venture |
|
(50 |
) |
|
|
— |
|
|
nm |
|
|
Amortization of TFCF Corporation (TFCF) intangible assets related to an equity investee |
|
(3 |
) |
|
|
(3 |
) |
|
— |
% |
|
Equity in the income of investees |
$ |
75 |
|
|
$ |
146 |
|
|
(49 |
)% |
Income from equity investees decreased $71 million, to $75 million from $146 million, primarily due to a loss from the India joint venture in the current quarter.
Income Taxes
The effective income tax rate was as follows:
|
|
Quarter Ended |
||||||
|
|
June 28, 2025 |
|
June 29, 2024 |
||||
|
Income before income taxes |
$ |
3,211 |
|
|
$ |
3,093 |
|
|
Income tax (benefit) expense |
|
(2,732 |
) |
|
|
251 |
|
|
Effective income tax rate |
|
(85.1 |
)% |
|
|
8.1 |
% |
The effective income tax rate was negative 85.1% in the current quarter compared to a positive effective income tax rate of 8.1% in the prior-year quarter. The current quarter included a $3.3 billion non-cash tax benefit recognized upon the change in Hulu’s U.S. income tax classification. Aside from the $3.3 billion tax benefit, both the current and prior-year quarters reflected benefits from favorable adjustments related to prior year tax matters.
Noncontrolling Interests
Net income attributable to noncontrolling interests was as follows:
|
|
Quarter Ended |
|
|
||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
Change |
||||
|
Net income attributable to noncontrolling interests |
$ |
(681 |
) |
|
$ |
(221 |
) |
|
>(100) % |
The increase in net income attributable to noncontrolling interests was due to an incremental payment to acquire Hulu.
Net income attributable to noncontrolling interests is determined on income after royalties and management fees, financing costs and income taxes, as applicable.
Cash from Operations
Cash provided by operations and free cash flow were as follows:
|
|
Nine Months Ended |
|
|
||||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
Change |
||||||
|
Cash provided by operations |
$ |
13,627 |
|
|
$ |
8,453 |
|
|
$ |
5,174 |
|
|
Investments in parks, resorts and other property |
|
(6,108 |
) |
|
|
(3,923 |
) |
|
|
(2,185 |
) |
|
Free cash flow(1) |
$ |
7,519 |
|
|
$ |
4,530 |
|
|
$ |
2,989 |
|
|
(1) |
Free cash flow is not a financial measure defined by GAAP. The most comparable GAAP measure is cash provided by operations. See the discussion on pages 17 through 21. |
Cash provided by operations increased $5.2 billion to $13.6 billion in the current period from $8.5 billion in the prior-year period driven by:
- Lower tax payments in the current period compared to the prior-year period reflecting:
- Deferral of fiscal 2025 U.S. federal and California state income tax payments until October 2025 pursuant to relief related to the 2025 wildfires in California
- Payment in fiscal 2024 of U.S. federal and California state income taxes related to fiscal 2023 that had been deferred pursuant to relief related to 2023 winter storms in California
- Higher operating income and, to a lesser extent, lower spending on content at Entertainment
- Higher operating income at Experiences
Capital Expenditures
Investments in parks, resorts and other property were as follows:
|
|
Nine Months Ended |
||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
||||
|
Entertainment |
$ |
(835 |
) |
|
$ |
(750 |
) |
|
Sports |
|
— |
|
|
|
(2 |
) |
|
Experiences |
|
|
|
||||
|
Domestic |
|
(4,068 |
) |
|
|
(1,953 |
) |
|
International |
|
(865 |
) |
|
|
(706 |
) |
|
Total Experiences |
|
(4,933 |
) |
|
|
(2,659 |
) |
|
Corporate |
|
(340 |
) |
|
|
(512 |
) |
|
Total investments in parks, resorts and other property |
$ |
(6,108 |
) |
|
$ |
(3,923 |
) |
Capital expenditures increased to $6.1 billion from $3.9 billion due to higher spend on cruise ship fleet expansion at the Experiences segment, partially offset by lower spend on corporate facilities.
Depreciation Expense
Depreciation expense was as follows:
|
|
Nine Months Ended |
||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
||
|
Entertainment |
$ |
540 |
|
$ |
503 |
|
Sports |
|
34 |
|
|
29 |
|
Experiences |
|
|
|
||
|
Domestic |
|
1,438 |
|
|
1,287 |
|
International |
|
576 |
|
|
538 |
|
Total Experiences |
|
2,014 |
|
|
1,825 |
|
Corporate |
|
244 |
|
|
159 |
|
Total depreciation expense |
$ |
2,832 |
|
$ |
2,516 |
THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; $ in millions, except per share data)
|
|
Quarter Ended |
|
Nine Months Ended |
||||||||||||
|
|
June 28, 2025 |
|
June 29, 2024 |
|
June 28, 2025 |
|
June 29, 2024 |
||||||||
|
Revenues |
$ |
23,650 |
|
|
$ |
23,155 |
|
|
$ |
71,961 |
|
|
$ |
68,787 |
|
|
Costs and expenses |
|
(20,005 |
) |
|
|
(19,801 |
) |
|
|
(60,732 |
) |
|
|
(59,618 |
) |
|
Restructuring and impairment charges |
|
(185 |
) |
|
|
— |
|
|
|
(437 |
) |
|
|
(2,052 |
) |
|
Other expense |
|
— |
|
|
|
(65 |
) |
|
|
— |
|
|
|
(65 |
) |
|
Interest expense, net |
|
(324 |
) |
|
|
(342 |
) |
|
|
(1,037 |
) |
|
|
(899 |
) |
|
Equity in the income of investees |
|
75 |
|
|
|
146 |
|
|
|
203 |
|
|
|
468 |
|
|
Income before income taxes |
|
3,211 |
|
|
|
3,093 |
|
|
|
9,958 |
|
|
|
6,621 |
|
|
Income taxes |
|
2,732 |
|
|
|
(251 |
) |
|
|
2,030 |
|
|
|
(1,412 |
) |
|
Net income |
|
5,943 |
|
|
|
2,842 |
|
|
|
11,988 |
|
|
|
5,209 |
|
|
Net income attributable to noncontrolling interests |
|
(681 |
) |
|
|
(221 |
) |
|
|
(897 |
) |
|
|
(697 |
) |
|
Net income attributable to The Walt Disney Company (Disney) |
$ |
5,262 |
|
|
$ |
2,621 |
|
|
$ |
11,091 |
|
|
$ |
4,512 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings per share attributable to Disney: |
|
|
|
|
|
|
|
||||||||
|
Diluted |
$ |
2.92 |
|
|
$ |
1.43 |
|
|
$ |
6.12 |
|
|
$ |
2.46 |
|
|
Basic |
$ |
2.92 |
|
|
$ |
1.44 |
|
|
$ |
6.14 |
|
|
$ |
2.47 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average number of common and common equivalent shares outstanding: |
|
|
|
|
|
|
|
||||||||
|
Diluted |
|
1,805 |
|
|
|
1,829 |
|
|
|
1,812 |
|
|
|
1,835 |
|
|
Basic |
|
1,799 |
|
|
|
1,821 |
|
|
|
1,806 |
|
|
|
1,829 |
|
THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; $ in millions, except per share data)
|
|
June 28, 2025 |
|
September 28, 2024 |
||||
|
ASSETS |
|
|
|
||||
|
Current assets |
|
|
|
||||
|
Cash and cash equivalents |
$ |
5,367 |
|
|
$ |
6,002 |
|
|
Receivables, net |
|
13,402 |
|
|
|
12,729 |
|
|
Inventories |
|
2,080 |
|
|
|
2,022 |
|
|
Content advances |
|
1,756 |
|
|
|
2,097 |
|
|
Other current assets |
|
1,215 |
|
|
|
2,391 |
|
|
Total current assets |
|
23,820 |
|
|
|
25,241 |
|
|
Produced and licensed content costs |
|
31,278 |
|
|
|
32,312 |
|
|
Investments |
|
8,671 |
|
|
|
4,459 |
|
|
Parks, resorts and other property |
|
|
|
||||
|
Attractions, buildings and equipment |
|
81,547 |
|
|
|
76,674 |
|
|
Accumulated depreciation |
|
(48,847 |
) |
|
|
(45,506 |
) |
|
|
|
32,700 |
|
|
|
31,168 |
|
|
Projects in progress |
|
6,294 |
|
|
|
4,728 |
|
|
Land |
|
1,191 |
|
|
|
1,145 |
|
|
|
|
40,185 |
|
|
|
37,041 |
|
|
Intangible assets, net |
|
9,639 |
|
|
|
10,739 |
|
|
Goodwill |
|
73,314 |
|
|
|
73,326 |
|
|
Other assets |
|
9,705 |
|
|
|
13,101 |
|
|
Total assets |
$ |
196,612 |
|
|
$ |
196,219 |
|
|
LIABILITIES AND EQUITY |
|
|
|
||||
|
Current liabilities |
|
|
|
||||
|
Accounts payable and other accrued liabilities |
$ |
20,500 |
|
|
$ |
21,070 |
|
|
Current portion of borrowings |
|
5,732 |
|
|
|
6,845 |
|
|
Deferred revenue and other |
|
6,740 |
|
|
|
6,684 |
|
|
Total current liabilities |
|
32,972 |
|
|
|
34,599 |
|
|
Borrowings |
|
36,531 |
|
|
|
38,970 |
|
|
Deferred income taxes |
|
3,097 |
|
|
|
6,277 |
|
|
Other long-term liabilities |
|
10,256 |
|
|
|
10,851 |
|
|
Commitments and contingencies |
|
|
|
||||
|
Equity |
|
|
|
||||
|
Preferred stock |
|
— |
|
|
|
— |
|
|
Common stock, $0.01 par value, Authorized – 4.6 billion shares, Issued – 1.9 billion shares |
|
59,515 |
|
|
|
58,592 |
|
|
Retained earnings |
|
59,109 |
|
|
|
49,722 |
|
|
Accumulated other comprehensive loss |
|
(3,049 |
) |
|
|
(3,699 |
) |
|
Treasury stock, at cost, 71 million shares at June 28, 2025 and 47 million shares at September 28, 2024 |
|
(6,430 |
) |
|
|
(3,919 |
) |
|
Total Disney Shareholders’ equity |
|
109,145 |
|
|
|
100,696 |
|
|
Noncontrolling interests |
|
4,611 |
|
|
|
4,826 |
|
|
Total equity |
|
113,756 |
|
|
|
105,522 |
|
|
Total liabilities and equity |
$ |
196,612 |
|
|
$ |
196,219 |
|
THE WALT DISNEY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; $ in millions)
|
|
Nine Months Ended |
||||||
|
|
June 28, 2025 |
|
June 29, 2024 |
||||
|
OPERATING ACTIVITIES |
|
|
|
||||
|
Net income |
$ |
11,988 |
|
|
$ |
5,209 |
|
|
Depreciation and amortization |
|
3,932 |
|
|
|
3,705 |
|
|
Impairments of goodwill, produced and licensed content and other assets |
|
419 |
|
|
|
2,038 |
|
|
Deferred income taxes |
|
(2,915 |
) |
|
|
(489 |
) |
|
Equity in the income of investees |
|
(203 |
) |
|
|
(468 |
) |
|
Cash distributions received from equity investees |
|
110 |
|
|
|
327 |
|
|
Net change in produced and licensed content costs and advances |
|
819 |
|
|
|
1,121 |
|
|
Equity-based compensation |
|
1,004 |
|
|
|
1,036 |
|
|
Other, net |
|
(153 |
) |
|
|
(20 |
) |
|
Changes in operating assets and liabilities |
|
|
|
||||
|
Receivables |
|
(660 |
) |
|
|
(1,373 |
) |
|
Inventories |
|
(70 |
) |
|
|
(2 |
) |
|
Other assets |
|
(201 |
) |
|
|
74 |
|
|
Accounts payable and other liabilities |
|
(307 |
) |
|
|
(814 |
) |
|
Income taxes |
|
(136 |
) |
|
|
(1,891 |
) |
|
Cash provided by operations |
|
13,627 |
|
|
|
8,453 |
|
|
|
|
|
|
||||
|
INVESTING ACTIVITIES |
|
|
|
||||
|
Investments in parks, resorts and other property |
|
(6,108 |
) |
|
|
(3,923 |
) |
|
Purchase of investments |
|
(98 |
) |
|
|
(1,006 |
) |
|
Other, net |
|
13 |
|
|
|
26 |
|
|
Cash used in investing activities |
|
(6,193 |
) |
|
|
(4,903 |
) |
|
|
|
|
|
||||
|
FINANCING ACTIVITIES |
|
|
|
||||
|
Commercial paper borrowings (payments), net |
|
(1,498 |
) |
|
|
1,377 |
|
|
Borrowings |
|
1,057 |
|
|
|
132 |
|
|
Reduction of borrowings |
|
(2,969 |
) |
|
|
(729 |
) |
|
Dividends |
|
(905 |
) |
|
|
(549 |
) |
|
Repurchases of common stock |
|
(2,496 |
) |
|
|
(2,523 |
) |
|
Acquisition of redeemable noncontrolling interests |
|
(439 |
) |
|
|
(8,610 |
) |
|
Other, net |
|
(840 |
) |
|
|
(820 |
) |
|
Cash used in financing activities |
|
(8,090 |
) |
|
|
(11,722 |
) |
|
|
|
|
|
||||
|
Impact of exchange rates on cash, cash equivalents and restricted cash |
|
31 |
|
|
|
(14 |
) |
|
|
|
|
|
||||
|
Change in cash, cash equivalents and restricted cash |
|
(625 |
) |
|
|
(8,186 |
) |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
6,102 |
|
|
|
14,235 |
|
|
Cash, cash equivalents and restricted cash, end of period |
$ |
5,477 |
|
|
$ |
6,049 |
|
DTC PRODUCT DESCRIPTIONS AND KEY DEFINITIONS
|
($ in millions except EPS) |
Pre-Tax Income/ Loss |
|
Tax Benefit/ Expense(1) |
|
After-Tax Income/ Loss(2) |
|
Diluted EPS(3) |
|
Change vs. prior-year period |
||||||||
|
Quarter Ended June 28, 2025 |
|
|
|
|
|
|
|
|
|
||||||||
|
As reported |
$ |
3,211 |
|
$ |
2,732 |
|
|
$ |
5,943 |
|
|
$ |
2.92 |
|
|
>100 % |
|
|
Exclude: |
|
|
|
|
|
|
|
|
|
||||||||
|
Hulu Transaction Impacts(4) |
|
— |
|
|
(3,277 |
) |
|
|
(3,277 |
) |
|
|
(1.56 |
) |
|
|
|
|
Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs(5) |
|
395 |
|
|
(92 |
) |
|
|
303 |
|
|
|
0.16 |
|
|
|
|
|
Restructuring and impairment charges(6) |
|
185 |
|
|
(43 |
) |
|
|
142 |
|
|
|
0.08 |
|
|
|
|
|
Excluding certain items |
$ |
3,791 |
|
$ |
(680 |
) |
|
$ |
3,111 |
|
|
$ |
1.61 |
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Quarter Ended June 29, 2024 |
|
|
|
|
|
|
|
|
|
||||||||
|
As reported |
$ |
3,093 |
|
$ |
(251 |
) |
|
$ |
2,842 |
|
|
$ |
1.43 |
|
|
|
|
|
Exclude: |
|
|
|
|
|
|
|
|
|
||||||||
|
Income Tax Reserve Adjustments |
|
— |
|
|
(418 |
) |
|
|
(418 |
) |
|
|
(0.23 |
) |
|
|
|
|
Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs(5) |
|
397 |
|
|
(93 |
) |
|
|
304 |
|
|
|
0.16 |
|
|
|
|
|
Other expense(7) |
|
65 |
|
|
(11 |
) |
|
|
54 |
|
|
|
0.03 |
|
|
|
|
|
Excluding certain items |
$ |
3,555 |
|
$ |
(773 |
) |
|
$ |
2,782 |
|
|
$ |
1.39 |
|
|
|
|
|
(1) |
Tax benefit/expense is determined using the tax rate applicable to the individual item. |
|
|
(2) |
Before noncontrolling interest share. |
|
|
(3) |
Net of noncontrolling interest share, where applicable. Total may not equal the sum of the column due to rounding. |
|
|
(4) |
Reflects a $3,277 million non-cash tax benefit recognized upon the change in Hulu’s U.S. income tax classification and $477 million recognized in “Net income attributable to noncontrolling interests” related to the acquisition of Hulu (Hulu Transaction Impacts). |
|
|
(5) |
For the current quarter, intangible asset amortization was $326 million, step-up amortization was $66 million and amortization of intangible assets related to a TFCF equity investee was $3 million. For the prior-year quarter, intangible asset amortization was $326 million, step-up amortization was $68 million and amortization of intangible assets related to a TFCF equity investee was $3 million. |
|
|
(6) |
Amounts for the current quarter include an impairment charge related to an equity investment ($179 million). |
|
|
(7) |
For the prior-year quarter, other expense was due to a charge related to a legal ruling ($65 million). |
|
The following table reconciles reported diluted EPS to diluted EPS excluding certain items for the nine-month period:
|
($ in millions except EPS) |
Pre-Tax Income/ Loss |
|
Tax Benefit/ Expense(1) |
|
After-Tax Income/ Loss(2) |
|
Diluted EPS(3) |
|
Change vs. prior year |
||||||||
|
Nine Months Ended June 28, 2025: |
|
|
|
|
|
|
|
|
|
||||||||
|
As reported |
$ |
9,958 |
|
$ |
2,030 |
|
|
$ |
11,988 |
|
|
$ |
6.12 |
|
|
>100 % |
|
|
Exclude: |
|
|
|
|
|
|
|
|
|
||||||||
|
Hulu Transaction Impacts |
|
— |
|
|
(3,277 |
) |
|
|
(3,277 |
) |
|
|
(1.55 |
) |
|
|
|
|
Resolution of a prior-year tax matter |
|
— |
|
|
(1,016 |
) |
|
|
(1,016 |
) |
|
|
(0.56 |
) |
|
|
|
|
Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs(4) |
|
1,188 |
|
|
(276 |
) |
|
|
912 |
|
|
|
0.49 |
|
|
|
|
|
Restructuring and impairment charges(5) |
|
437 |
|
|
145 |
|
|
|
582 |
|
|
|
0.32 |
|
|
|
|
|
Excluding certain items |
$ |
11,583 |
|
$ |
(2,394 |
) |
|
$ |
9,189 |
|
|
$ |
4.82 |
|
|
26 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Nine Months Ended June 29, 2024: |
|
|
|
|
|
|
|
|
|
||||||||
|
As reported |
$ |
6,621 |
|
$ |
(1,412 |
) |
|
$ |
5,209 |
|
|
$ |
2.46 |
|
|
|
|
|
Exclude: |
|
|
|
|
|
|
|
|
|
||||||||
|
Restructuring and impairment charges(5) |
|
2,052 |
|
|
(121 |
) |
|
|
1,931 |
|
|
|
1.05 |
|
|
|
|
|
Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs(4) |
|
1,282 |
|
|
(299 |
) |
|
|
983 |
|
|
|
0.52 |
|
|
|
|
|
Other expense(6) |
|
65 |
|
|
(11 |
) |
|
|
54 |
|
|
|
0.03 |
|
|
|
|
|
Income Tax Reserve Adjustments |
|
— |
|
|
(418 |
) |
|
|
(418 |
) |
|
|
(0.23 |
) |
|
|
|
|
Excluding certain items |
$ |
10,020 |
|
$ |
(2,261 |
) |
|
$ |
7,759 |
|
|
$ |
3.83 |
|
|
|
|
|
(1) |
Tax benefit/expense is determined using the tax rate applicable to the individual item. |
|
|
(2) |
Before noncontrolling interest share. |
|
|
(3) |
Net of noncontrolling interest share, where applicable. Total may not equal the sum of the column due to rounding. |
|
|
(4) |
For the current period, intangible asset amortization was $980 million, step-up amortization was $199 million and amortization of intangible assets related to a TFCF equity investee was $9 million. For the prior-year period, intangible asset amortization was $1,068 million, step-up amortization was $205 million and amortization of intangible assets related to a TFCF equity investee was $9 million. |
|
|
(5) |
Amounts for the current period include impairment charges related to an equity investment ($179 million), the Star India Transaction ($143 million) and content ($109 million). Tax expense in the current period includes the estimated tax impact of these charges and a non-cash tax charge of $244 million related to the Star India Transaction. Amounts for the prior-year period include impairments of goodwill ($2,038 million) and a non-cash tax benefit related to the Star India Transaction ($113 million). |
|
|
(6) |
For the prior-year period, other expense was due to a charge related to a legal ruling ($65 million). |
|
|
|
||
Total segment operating income
The Company evaluates the performance of its operating segments based on segment operating income, and management uses total segment operating income (the sum of segment operating income from all of the Company’s segments) as a measure of the performance of operating businesses separate from non-operating factors. The Company believes that information about total segment operating income assists investors by allowing them to evaluate changes in the operating results of the Company’s portfolio of businesses separate from non-operational factors that affect net income, thus providing separate insight into both operations and other factors that affect reported results.
The following table reconciles income before income taxes to total segment operating income:
|
|
Quarter Ended |
|
|
|
Nine Months Ended |
|
|
||||||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
Change |
|
June 28, 2025 |
|
June 29, 2024 |
|
Change |
||||||
|
Income before income taxes |
$ |
3,211 |
|
$ |
3,093 |
|
4 |
% |
|
$ |
9,958 |
|
$ |
6,621 |
|
50 |
% |
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Corporate and unallocated shared expenses |
|
410 |
|
|
328 |
|
(25 |
)% |
|
|
1,265 |
|
|
1,027 |
|
(23 |
)% |
|
Equity in the loss of India joint venture |
|
50 |
|
|
— |
|
nm |
|
|
186 |
|
|
— |
|
nm |
||
|
Restructuring and impairment charges |
|
185 |
|
|
— |
|
nm |
|
|
437 |
|
|
2,052 |
|
79 |
% |
|
|
Other expense |
|
— |
|
|
65 |
|
100 |
% |
|
|
— |
|
|
65 |
|
100 |
% |
|
Interest expense, net |
|
324 |
|
|
342 |
|
5 |
% |
|
|
1,037 |
|
|
899 |
|
(15 |
)% |
|
Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs |
|
395 |
|
|
397 |
|
1 |
% |
|
|
1,188 |
|
|
1,282 |
|
7 |
% |
|
Total segment operating income |
$ |
4,575 |
|
$ |
4,225 |
|
8 |
% |
|
$ |
14,071 |
|
$ |
11,946 |
|
18 |
% |
Free cash flow
The Company uses free cash flow (cash provided by operations less investments in parks, resorts and other property), among other measures, to evaluate the ability of its operations to generate cash that is available for purposes other than capital expenditures. Management believes that information about free cash flow provides investors with an important perspective on the cash available to service debt obligations, make strategic acquisitions and investments and pay dividends or repurchase shares.
The following table presents a summary of the Company’s consolidated cash flows:
|
|
Quarter Ended |
|
Nine Months Ended |
||||||||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
June 28, 2025 |
|
June 29, 2024 |
||||||||
|
Cash provided by operations |
$ |
3,669 |
|
|
$ |
2,602 |
|
|
$ |
13,627 |
|
|
$ |
8,453 |
|
|
Cash used in investing activities |
|
(1,720 |
) |
|
|
(2,350 |
) |
|
|
(6,193 |
) |
|
|
(4,903 |
) |
|
Cash used in financing activities |
|
(2,537 |
) |
|
|
(898 |
) |
|
|
(8,090 |
) |
|
|
(11,722 |
) |
|
Impact of exchange rates on cash, cash equivalents and restricted cash |
|
107 |
|
|
|
(31 |
) |
|
|
31 |
|
|
|
(14 |
) |
|
Change in cash, cash equivalents and restricted cash |
|
(481 |
) |
|
|
(677 |
) |
|
|
(625 |
) |
|
|
(8,186 |
) |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
5,958 |
|
|
|
6,726 |
|
|
|
6,102 |
|
|
|
14,235 |
|
|
Cash, cash equivalents and restricted cash, end of period |
$ |
5,477 |
|
|
$ |
6,049 |
|
|
$ |
5,477 |
|
|
$ |
6,049 |
|
The following table reconciles the Company’s consolidated cash provided by operations to free cash flow:
|
|
Quarter Ended |
|
|
|
Nine Months Ended |
|
|
||||||||||||||||
|
($ in millions) |
June 28, 2025 |
|
June 29, 2024 |
|
Change |
|
June 28, 2025 |
|
June 29, 2024 |
|
Change |
||||||||||||
|
Cash provided by operations |
$ |
3,669 |
|
|
$ |
2,602 |
|
|
$ |
1,067 |
|
|
$ |
13,627 |
|
|
$ |
8,453 |
|
|
$ |
5,174 |
|
|
Investments in parks, resorts and other property |
|
(1,780 |
) |
|
|
(1,365 |
) |
|
|
(415 |
) |
|
|
(6,108 |
) |
|
|
(3,923 |
) |
|
|
(2,185 |
) |
|
Free cash flow |
$ |
1,889 |
|
|
$ |
1,237 |
|
|
$ |
652 |
|
|
$ |
7,519 |
|
|
$ |
4,530 |
|
|
$ |
2,989 |
|
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