“recall, we originally guided to about $7 billion in fiscal '26, and now we're up to at least $9 billion.”

In context

“Hugh Johnston (Chief Financial Officer): Thanks for the question, Mike. As you well know, our company generates a lot of free cash flow, and we do have a very strong balance sheet. And we're not really looking to build cash, and we're not looking to delever the balance sheet meaningfully from here. We like where we sit in terms of leverage right now. So the goal as a company is to both drive growth and to drive capital return to shareholders. And we actually have the capacity to do both. As we think about our capital allocation priorities, number one is always going to be investing back in the business to drive growth. And we're doing that. We're turbocharging the Experiences growth with our $9 billion of fiscal '26 CapEx. And you can see the results on that in terms of the accelerated growth we're seeing in that business. We also plan to grow content spending from the current levels over time. We've talked about international, in particular, as being an opportunity where we think we can make a difference. On content, we're on track to spend $24 billion across the company this year. That's up modestly year-over-year. And then as we think about shareholder returns in that aspect of capital allocation, I'd certainly highlight two things: number one is the semiannual dividend, which we've obviously been increasing; and number two, in terms of the share repurchase program, recall, we originally guided to about $7 billion in fiscal '26, and now we're up to at least $9 billion. And the reason we're doing that is largely to utilize the cash that had been set aside previously for the OpenAI deal and now from the expected proceeds from the A&E transaction, which was announced overnight. One thing I'll add, Mike, as Josh said, we're highly focused on operating with speed and agility and improving productivity and efficiency across the company so we can invest in accelerating growth. I will tell you that this work is ongoing as we look at meaningful reductions to cost, including labor and SG&A, and we'll update you on progress as we move forward.”