DIS · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

Walt Disney Co · 2026-08-05 · Importance 84 · Surprise 100

Disney’s quarterly effective income tax rate was 22.0% in 2026 compared with negative 85.1% in 2025, when a $3.3 billion non-cash tax benefit arose from Hulu’s U.S. income tax classification change. The nine-month effective tax rate increased to 27.2% from negative 20.4% because the prior-year period included a roughly 33-percentage-point Hulu tax benefit and a roughly 12-percentage-point benefit from prior-year tax matters. The current nine-month period included approximately 4 percentage points of unfavorable tax impact from non-cash charges related to the Fubo and NFL Transactions. Those Fubo and NFL transaction tax charges totaled $422 million after tax and reduced nine-month diluted EPS by $0.22.

Key facts

• Certain items impacting nine months ended June 27, 2026 included non-cash tax charges from the Fubo and NFL Transactions of $307 million and $115 million, respectively source
• Effective income tax rate for the quarter ended June 27, 2026: 22.0% compared to negative 85.1% in prior-year quarter which included a $3.3 billion non-cash tax benefit from Hulu classification change source