The Walt Disney Company (DIS) Earnings Call Transcript & Summary

The Walt Disney Company's performance this quarter reflects the power of disciplined execution in a dynamic and competitive environment. We demonstrated that creativity, strategic clarity and business transformation can work together to drive strong outcomes for consumers and sustained value for shareholders. I'm Ben Swinburne, EVP of Investor Relations and Corporate Strategy at Disney. Today, I want to take a look at the drivers behind our performance, our strategy and the foundation we continue to build on for long-term value creation. Please note that this video may include forward-looking statements. See the company's securities filings for related risks. Let's start with some high-level numbers. In the second quarter, we grew revenue by 7% to $25.2 billion and total segment operating income by 4% to $4.6 billion. Adjusted EPS increased by 8% to $1.57. We modestly exceeded previous guidance, driven primarily by stronger-than-expected revenue growth. Our creative and operational momentum drove strong quarterly results in Q2, and we continue to expect growth to accelerate in the second half of the fiscal year. The foundation of our growth is a unified enterprise-wide strategy built on 3 pillars. First, our relentless investment in creative excellence. Our intellectual property is Disney's engine: creating stories, franchises and characters that power engagement across platforms. That's why investments in hits like Zootopia 2, which has earned $1.9 billion at the global box office and has streamed over 1 billion hours, diverse global originals and new films from the existing worlds of Disney, Marvel, Pixar and Star Wars are so crucial as they extend from screens to parks to merchandise in a flywheel that few can replicate. Original IP like Hoppers earned critical and fan acclaim this year, while the Devil Wears Prada 2 and our upcoming slate demonstrate the enduring resonance of Disney's storytelling engine. Second, expanding reach and deepening engagement globally. Our strategy is to build more touch points, digital and physical, wherever fans are. Disney+ and Hulu are scaling personalized experiences and international content with hits like Battle of Fates in Korea and Rivals in the U.K. And our parks and Disney Cruise Lines are extending the brand into new geographies in new and innovative ways. Third, technology as a value multiplier. From AI powering dynamic recommendations and AdTech to streamlining operations and personalizing park experiences, we're investing in technology that drives efficiency and unlocks new monetization streams. Disney+ and Hulu continue to advance, with user experience and content enhancements driving stronger retention and engagement. ESPN remains the worldwide leader in sports. It is also a center of innovation at The Walt Disney Company. And our ESPN App continues to resonate with fans with features like Multiview, Verts and a personalized SportsCenter for you. We are investing meaningfully in technology. As with any advanced technology, we're committed to implementing AI in a way that keeps human creativity at the center of everything that we do, respecting both creators and the tremendous value of our own intellectual property. Over time, we're working to evolve Disney+ into a digital centerpiece rather than a video repository. Think interactivity, integrated commerce, gaming and connections across every consumer Disney touch point. This unified approach, what we call One Disney, lets us leverage IP, data and talent across all businesses. From Zootopia resonating at the box office all the way to Shanghai Disneyland, our ability to cross-promote through games, merchandise and experiences allow us to compound value of every success. We're also leaning into a capital-light model to further expand internationally, including a new ship in Japan through an agreement with Oriental Land Company and a landmark theme park in Abu Dhabi through an agreement with Miral. The value that our fans see in our offerings like a Disney vacation, our film and television shows, beloved characters and thrilling live sports and events support our financial results. And we're using technology as a powerful accelerant to improve the consumer experience across our business lines, drive operational efficiency and unlock new possibilities for creativity, growth and returns. To wrap up, our creative engine continues to deliver. We're investing in the IP, experiences and technology that drive compounding cross-segment value, and we're doing it all with discipline and a keen focus on returns, both to consumers and shareholders. That's the story behind our Q2 results, and it's why we remain optimistic about what's ahead for Disney. Thanks for your time and your continued interest in The Walt Disney Company.