The Walt Disney Company

Human capital and workforce · Labor relations and union negotiations

Labor disputes and work stoppages involving our employees; persons employed on our productions; athletes or others employed by, or otherwise connected with, sports leagues or organizers; or the employees of our licensees or retailers who sell our licensed consumer products or providers of programming content may disrupt or lead to closure of certain operations and reduce our revenues.

Core operations · Operational disruption and business continuity

A variety of uncontrollable events disrupt our businesses, reduce demand for or consumption of our products and services, impair our ability to provide our products and services or increase the cost of providing our products and services, adversely impacting our results of operations and financial condition, including health concerns; adverse weather conditions arising from short-term weather patterns or long-term climate change; international, political or military developments; and terrorist attacks.

Human capital and workforce · Talent acquisition and retention

Our operations are impacted by our ability to attract and retain employees and costs of employee wages and health, welfare and retirement benefits, including postretirement medical benefits for some employees and retirees, may negatively impact our results of operations and financial condition.

Economic and market conditions · Economic recession and downturns

Declines in U.S., global and regional economic conditions, such as recessions, other less severe slowdowns in economic activity and/or inflationary conditions typically adversely affect demand for our products and services and/or costs to operate our businesses, reducing our revenue and earnings.

Social and demographic · Cultural and behavioral changes

We face risks relating to misalignment with public and consumer tastes and preferences for entertainment, travel and consumer products, which impacts demand for our entertainment offerings and products and services and our results of operations.

Natural and catastrophic events · Natural disasters and extreme weather

Adverse weather conditions arising from short-term weather patterns or long-term climate change, including longer and more regular excessive heat conditions, catastrophic events or natural disasters (such as excessive heat or rain, hurricanes, wildfires, typhoons, floods, droughts, tsunamis and earthquakes) disrupt our businesses.

Geopolitical and trade · Trade policies tariffs and sanctions

In 2025, tariffs were announced with respect to and by certain U.S. trading partners, which could, depending on how these or future tariffs or other regulations with respect to trade are implemented, have a significant impact on our results of operations, including by impacting the macroeconomic environment, increasing costs or adversely affecting demand for our products and services.

Natural and catastrophic events · Terrorism and security threats

The operation and profitability of our businesses and demand for and consumption of our products and services, particularly our parks and experiences businesses, are highly dependent on the general environment for travel and tourism. The operation of our businesses is subject to significant adverse impact as a result of a variety of factors beyond our control, including: health concerns; adverse weather conditions; international, political or military developments; macroeconomic conditions; and terrorist attacks.

Strategic execution · Strategic transformation and turnaround risks

We adjust our business strategies and plans from time to time in connection with changes in senior management and in our efforts to respond to changes in technology, consumer purchasing and consumption patterns. Our new business strategies and plans are, among other things, subject to execution risk and may not produce the anticipated benefits. We have impaired the value of our content primarily at our DTC services and goodwill and intangible assets at our linear networks.

Market position and competition · Competitive pressure and market share loss

We face substantial competition in each of our businesses from alternative providers of the products and services we offer and from other forms of entertainment, lodging, tourism and recreational activities. Increased competition raises the cost of programming, including for sports and other products, and diverts consumers from our offerings to other products and services.

Market position and competition · Market cyclicality and demand volatility

The seasonality of certain of our businesses and timing of certain of our product offerings could exacerbate negative impacts on our operations. Negative impacts on our business occurring during a time of typical high seasonal demand such as our park closures due to hurricane damage during the summer travel season could have a disproportionate effect on the results of that business for the year.

Customer and revenue · Customer retention and subscription renewal

We face risks related to the renewal of long-term programming or distribution contracts on sufficiently favorable terms. We may lose programming rights or distribution rights if we are unable to renew these contracts on acceptable terms. Renewal negotiations with certain MVPDs for distribution contracts scheduled to expire in fiscal 2026 could lead to temporary or longer-term service blackouts.

Reputation and brand · Brand damage and negative publicity

Our reputation and globally recognizable brands are integral to the success of our businesses. Significant negative claims or publicity regarding the Company or its operations, products, management, employees, practices, business partners, business decisions, social responsibility and culture, which may be amplified by social media, adversely impact our brands or reputation.

Digital transformation and innovation · Artificial intelligence and automation

Regulations governing new technological developments, such as developments in artificial intelligence (AI), including generative AI and large language model tools, remain unsettled, and these developments may affect aspects of our existing business models, including revenue streams for the use of our IP, how we create our entertainment offerings and the competition we face.

Legal and litigation · Litigation and legal proceedings

We face risks from claims, litigation, governmental investigations and other proceedings to our businesses, reputation, results of operation and financial condition. A private securities class action lawsuit was filed in federal court against the Company and certain current and former senior management on behalf of certain purchasers of securities of the Company seeking unspecified damages.

Industry regulation · Safety and environmental regulations

Domestic and international laws and regulations relating to environmental, social and governance matters, including environmental sustainability, climate change, human rights and human capital management, have been adopted or are under consideration. Responding to these laws and regulations has increased our compliance costs.

International and currency · Foreign exchange and currency exposure

Fluctuations in foreign currency exchange rates against the U.S. dollar impact our results of operations, including by impacting the cost in U.S. dollars of providing our goods and services, our revenues in U.S. dollars generated by our international businesses and the international demand for our domestic products and services.

International and currency · International operations and emerging markets

Our operations outside the U.S. are affected by the operation of laws in those jurisdictions. Laws in some international jurisdictions differ in significant respects from those in the U.S. In addition, ongoing and future developments in international political, trade and security policy may lead to new regulations that increase the cost of providing our products and services.

Capital structure and performance · Credit rating and cost of capital

Potential credit ratings actions, increases in interest rates, volatility in the U.S. and global financial markets or periods of elevated indebtedness could impede access to, or increase the cost of, financing our operations and investments and have the effect of decreasing of business flexibility.

International and currency · Foreign exchange and currency exposure

Fluctuations in foreign currency exchange rates against the U.S. dollar impact our revenues and the profitability of our businesses, including by impacting the cost in U.S. dollars of providing our goods and services, our revenues in U.S. dollars generated by our international businesses and the international demand for our domestic products and services.