DIS · Walt Disney Co
10-Q filed 2026-08-05 period 2026-06-27
76 Stable
confidence high · source filing on SEC.gov ↗
- Entertainment operating income surged 64% to $1.68 billion in the quarter, driven by subscription and affiliate fee growth, despite a 50% drop in Disney's consolidated net income due to a tough prior-year tax comparison.
- Experiences segment revenue grew 10% to $9.97 billion, supported by cruise line expansions (Disney Destiny and Disney Adventure) and higher domestic guest spending, yielding a 20% increase in segment operating income.
- Disney recorded a significant $812 million impairment charge on its investment in A+E Television Networks during the quarter, alongside ongoing regulatory scrutiny from an FCC order to file early TV station license renewals.
vs. prior filing (10-Q filed 2026-05-06)
FHS 72 → 76 (+4) · Stable -> Stable
Profitability +8Balance sheet +0Cash generation +7Risk flags -5Mgmt signal +8
Filing Health Score pillars
Profitability 25%
78
Revenues grew 7% in the quarter to $25.2 billion, driven by growth in Experiences and Entertainment, though net income fell 50% to $2.6 billion due to a tough prior-year tax benefit comparison (MD&A - Consolidated Results).
Balance sheet 20%
65
Total borrowings rose to $46.0 billion against cash of $5.2 billion, with a current ratio of 0.71, while share count decreased via $7.2 billion in nine-month repurchases (Condensed Consolidated Balance Sheets, Item 2).
Cash generation 20%
82
Operating cash flow of $12.5 billion for the nine months comfortably exceeded net income of $7.8 billion, supporting $6.8 billion in capital expenditures primarily for parks and resorts (Condensed Consolidated Statements of Cash Flows).
Risk flags 20%
75
No going-concern issues are present, but risks include an $812 million impairment of the A+E investment, carriage disputes leading to blackouts, and an FCC order to file early license renewals (Risk Factors, MD&A - Restructuring and Impairment).
Mgmt signal 15%
80
Management reports strong operating income growth in Entertainment (+64%) and Experiences (+20%), and is reorganizing Consumer Products under Entertainment for FY2027 (MD&A - Business Segment Results).
Key metrics (Nine months ended June 27, 2026)
period: Nine months ended June 27, 2026
total debt: $46,041 million
cash and equivalents: $5,185 million
shares outstanding: 1,730 million
revenue: $76,397 million
net income: $7,793 million
operating cash flow: $12,515 million
Gemma triage notes (pre-analysis, second opinion)
None for this filing.Automated research summaries derived from SEC filings. Not investment advice.