Walt Disney (DIS) AI Stock Analysis

• Market Cap: $177.68B
• Dividend Yield: 1.1%
• Average Volume (3M): 11.55M
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.83
• Revenue Growth: 3.61%
• EPS Growth: 152.34%
• Country: US
• Employees: 177,080
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 1.63
• Shares Outstanding: 1,771,519,900
• 10 Day Avg. Volume: 10,444,717
• 30 Day Avg. Volume: 11,548,458
• PEG Ratio: 0.11
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 20.31
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 6.08
• Enterprise Value/Ebitda: 11.26
• 1Y Price Target: $133.94
• Price Target Upside: 33.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 6.59
• Revenue Forecast (FY): $101.14B

• Rating: 69 Neutral
• Price Target: $114.00 ▲(13.66% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by improving financial performance (sharp earnings recovery and healthier leverage) and a constructive earnings-call outlook led by streaming margin expansion and strong Experiences demand. These positives are partially offset by weakening technical trend signals and softer cash-flow quality in the latest TTM period; valuation remains reasonable and provides some support.

Positive Factors

Streaming profitability momentum

Disney’s streaming arm moved from multibillion-dollar losses to positive operating results, with management targeting ~10% margins. That structural margin improvement supports durable cash generation, reduces ongoing subsidy needs for content, and enables reinvestment in product and rights over the medium term.

Experiences demand and pricing power

Theme parks and resorts delivering record revenue and rising bookings shows resilient demand and pricing power. Strong per-capita spending and global expansion projects underpin predictable, high-margin cash flows that diversify Disney’s revenue base versus cyclical media advertising.

Improving balance sheet and returns

Lower leverage and materially improved ROE increase financial flexibility to fund content, parks CapEx, and strategic initiatives. A healthier capital structure reduces refinancing risk, preserves access to credit markets and supports investment without overly diluting operations during moderate downturns.

Negative Factors

Weaker free cash flow conversion

Despite strong reported net income, a sharp drop in FCF and subpar cash conversion indicate earnings quality gaps. Persistent conversion weakness can limit self‑funding of content and park investments, increase reliance on debt or capital markets, and constrain shareholder return over the medium term.

Recurring IP & litigation exposure

Repeated injunctions and patent disputes create structural distribution risk for streaming and device compatibility. Potential licensing costs, regional injunctions or forced tech changes could raise operating expenses, complicate global rollout of streaming features and impair long‑term monetization.

Leadership transition and governance scrutiny

A CEO transition combined with activist scrutiny and the former CEO staying as adviser can introduce strategic ambiguity and execution risk. Shifts in leadership priorities or governance tensions may slow decision making on content strategy, capital allocation, and long‑term structural initiatives.

Walt Disney Business Overview & Revenue Model

Company Description

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. It operates through two segments, Disney Media and Entertainment Distribution; and Disney Parks, Experiences and Products. The company engages in the film and episodic television content production and distribution activities, as well as operates television broadcast networks under the ABC, Disney, ESPN, Freeform, FX, Fox, National Geographic, and Star brands; and studios that produces motion pictures under the Walt Disney Pictures, Twentieth Century Studios, Marvel, Lucasfilm, Pixar, and Searchlight Pictures banners. It also offers direct-to-consumer streaming services through Disney+, Disney+ Hotstar, ESPN+, Hulu, and Star+; sale/licensing of film and television content to third-party television and subscription video-on-demand services; theatrical, home entertainment, and music distribution services; staging and licensing of live entertainment events; and post-production services by Industrial Light & Magic and Skywalker Sound. In addition, the company operates theme parks and resorts, such as Walt Disney World Resort in Florida; Disneyland Resort in California; Disneyland Paris; Hong Kong Disneyland Resort; and Shanghai Disney Resort; Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, and Adventures by Disney as well as Aulani, a Disney resort and spa in Hawaii; licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort; and provides consumer products, which include licensing of trade names, characters, visual, literary, and other IP for use on merchandise, published materials, and games. Further, it sells branded merchandise through retail, online, and wholesale businesses; and develops and publishes books, comic books, and magazines. The Walt Disney Company was founded in 1923 and is based in Burbank, California.

How the Company Makes Money

Disney generates revenue through multiple key streams: Theme Parks and Resorts account for a significant portion of its earnings, driven by ticket sales, hotel accommodations, food and beverage sales, and merchandise. Disney Media Networks contributes revenue through advertising, subscriptions, and affiliate fees from its television networks. Disney Studio Entertainment earns money from theatrical releases, home entertainment, and licensing of its film and television content. The Direct-to-Consumer segment, particularly through Disney+, Hulu, and ESPN+, generates income via subscription fees and advertising revenue. Additionally, Disney benefits from merchandise licensing, where it earns royalties from third-party products featuring its characters and brands. Strategic partnerships, such as those with streaming platforms and retailers, further enhance its revenue potential.

Walt Disney Financial Statement Overview

Summary

Profitability has rebounded strongly (TTM net income ~$12.25B and improved margins), and leverage looks more manageable with lower debt-to-equity. Offsetting this, revenue growth appears uneven and TTM free cash flow fell sharply with weaker cash conversion versus net income, tempering overall quality of earnings.

Income Statement

DIS shows a strong profitability rebound and solid operating leverage. Net income rose sharply from $2.35B (2023) and $4.97B (2024) to $12.40B (2025 annual) and $12.25B in TTM (Trailing-Twelve-Months), with net margin improving to ~12.8% (TTM) from low single-digits in 2022–2023. Operating profitability also strengthened (EBIT margin ~14–15% in 2025/TTM vs. ~6–8% in 2021–2022). The key offset is modest top-line momentum lately: revenue growth is low in 2025 annual (~3.4%) and while the TTM growth figure is very strong, it is not consistent with the recent annual trend, suggesting growth may be uneven.

Balance Sheet

The balance sheet looks healthy overall, with moderate leverage and improving returns. Total debt is ~$44.9B–$46.6B (2025 annual/TTM) against equity of ~$108B–$110B, keeping debt-to-equity around ~0.41–0.43 (down meaningfully from ~0.61 in 2021). Return on equity improved materially to ~11–12% (2025 annual/TTM) from ~2–5% in 2021–2024, reflecting the earnings recovery. A remaining watch item is still-elevated absolute debt levels for an entertainment business, which can constrain flexibility if operating conditions soften.

Cash Flow

Cash generation is positive but less consistent than earnings. Operating cash flow is solid at $15.6B in TTM (Trailing-Twelve-Months) (vs. $18.1B in 2025 annual), and free cash flow remains positive at $7.06B (TTM). However, free cash flow declined sharply in the TTM period (about -29.9% growth), and free cash flow trails net income (free cash flow is ~45% of net income in TTM), indicating weaker cash conversion versus the current profit run-rate. The 2025 annual period looked better on conversion (~56% of net income), so the latest TTM step-down is the main concern.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	95.72B	94.42B	91.36B	88.90B	82.72B	67.42B
Gross Profit	35.69B	35.66B	32.66B	29.70B	28.32B	22.29B
EBITDA	19.26B	19.14B	14.63B	12.11B	12.00B	9.08B
Net Income	12.25B	12.40B	4.97B	2.35B	3.15B	2.00B
Balance Sheet
Total Assets	202.09B	197.51B	196.22B	205.58B	203.63B	203.61B
Cash, Cash Equivalents and Short-Term Investments	5.68B	5.70B	6.00B	14.18B	11.62B	15.96B
Total Debt	46.64B	44.88B	49.52B	50.67B	52.26B	58.31B
Total Liabilities	88.08B	82.90B	90.70B	92.57B	95.25B	101.39B
Stockholders Equity	108.48B	109.87B	100.70B	99.28B	95.01B	88.55B
Cash Flow
Free Cash Flow	7.06B	10.08B	8.56B	4.90B	1.07B	1.99B
Operating Cash Flow	15.63B	18.10B	13.97B	9.87B	6.01B	5.57B
Investing Cash Flow	-8.21B	-8.04B	-6.88B	-4.64B	-5.01B	-3.16B
Financing Cash Flow	-7.38B	-10.37B	-15.29B	-2.72B	-4.74B	-4.38B

Walt Disney Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 100.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIS, the sentiment is Negative. The current price of 100.3 is below the 20-day moving average (MA) of 103.10, below the 50-day MA of 107.38, and below the 200-day MA of 112.10, indicating a bearish trend. The MACD of -2.17 indicates Positive momentum. The RSI at 38.64 is Neutral, neither overbought nor oversold. The STOCH value of 15.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DIS.

Walt Disney Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	76 Outperform	$108.22B	5.14	20.98%	4.42%	0.20%	61.54%
NFLX	76 Outperform	$398.40B	36.11	43.25%	―	15.49%	35.54%
DIS	69 Neutral	$177.68B	21.11	11.35%	1.10%	3.61%	152.34%
FOXA	68 Neutral	$23.54B	34.54	16.22%	0.75%	14.91%	9.30%
WBD	62 Neutral	$68.55B	98.11	2.05%	―	-4.29%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LYV	59 Neutral	$36.21B	66.61	157.65%	―	5.39%	36.94%

Walt Disney Corporate Events

Walt Disney Expands Multibillion-Dollar Global Credit Facilities

On February 27, 2026, The Walt Disney Company renewed and expanded its liquidity framework by entering a new 364-day unsecured credit agreement for up to $5.25 billion with Citibank and a new five-year unsecured credit agreement for up to $4 billion with JPMorgan, replacing prior facilities of the same sizes. The facilities, guaranteed by TWDC Enterprises and aligned with Disney’s commercial paper program and general corporate needs, preserve key covenant structures including a minimum 3.0x EBITDA-to-interest coverage ratio, while allowing flexible prepayment and multi-currency borrowing.

Both credit agreements run to 2027 and 2031 respectively, give lenders customary default remedies, and provide mechanisms to transition away from existing rate benchmarks such as Term SOFR, EURIBOR, TIBOR, and SONIA if needed. Disney also amended a separate five-year credit agreement signed in March 2024 to classify FuboTV Inc. as an excluded entity, a move that refines the scope of representations, covenants, and default provisions and helps ring-fence credit risk around certain joint ventures and affiliates.

Each of the credit facilities and the 2024 agreement amendment excludes specified entities, including businesses tied to Hong Kong Disneyland, Shanghai Disney Resort, and FuboTV Inc., from certain obligations and default triggers under the lending arrangements. This structure maintains Disney’s overall access to nearly $9.25 billion in committed bank financing while limiting the impact of potential issues at select ventures on the company’s core balance sheet and lender protections.

The most recent analyst rating on (DIS) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Walt Disney stock, see the DIS Stock Forecast page.

Disney Announces Leadership Change in Communications Amid Transition

On February 20, 2026, The Walt Disney Company exercised its right to terminate without cause the employment of Kristina K. Schake as Senior Executive Vice President and Chief Communications Officer, effective March 19, 2026, with her departure timed to coincide with the end of CEO Bob Iger’s tenure. Schake, who joined Disney in 2022, will receive separation benefits under her existing employment agreement, and the company said it will name her successor at a later date.

During her four-year tenure, Schake played a central role in shaping communications around several of Disney’s most consequential recent milestones, including Bob Iger’s return as CEO in November 2022, the company’s defeat of two proxy challenges, the achievement of streaming profitability and Hulu’s integration into Disney+, and major strategic moves such as the Abu Dhabi resort announcement and ESPN’s direct-to-consumer launch. Her exit marks a significant leadership transition in Disney’s communications function just as the company prepares for a new management era under incoming CEO Josh D’Amaro and President and Chief Creative Officer Dana Walden, with implications for how Disney will manage messaging, investor relations, and stakeholder confidence amid ongoing industry complexity.

The most recent analyst rating on (DIS) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Walt Disney stock, see the DIS Stock Forecast page.

Walt Disney Announces $4 Billion Senior Notes Offering

On February 10, 2026, The Walt Disney Company entered into an underwriting agreement with Citigroup Global Markets Inc. and J.P. Morgan Securities LLC to issue a total of $4 billion in senior notes, including floating rate notes and fixed-rate notes maturing between 2029 and 2036. The notes, issued under an existing 2019 indenture and registered on an effective shelf registration statement, underscore Disney’s continued use of public debt markets to secure long-term funding for its operations and capital needs, with guarantees from TWDC Enterprises 18 Corp. and Citibank, N.A. serving as trustee supporting the issuance.

Disney’s filing of the current report was aimed at incorporating key transaction documents, including the underwriting agreement, officer certificates, note forms and legal opinions, into its registration framework with the Securities and Exchange Commission. This step formalized the new debt series within the company’s existing capital structure, providing investors with standardized disclosure and reinforcing Disney’s position as a frequent, large-scale issuer in the investment-grade corporate bond market.

The most recent analyst rating on (DIS) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on Walt Disney stock, see the DIS Stock Forecast page.

Disney Names Josh D’Amaro CEO in Leadership Transition

On February 2, 2026, Disney’s board approved a major leadership transition, naming Disney Experiences chairman Josh D’Amaro as chief executive officer effective March 18, 2026, with current CEO Robert A. Iger moving to a senior advisor role and remaining on the board until his planned retirement on December 31, 2026. D’Amaro, a 28-year company veteran who has overseen the rapid global expansion and strong financial performance of Disney Experiences, will receive a compensation package aligned with other top-tier entertainment CEOs, while the board also moved to install internal frontrunner Dana Walden—currently co-chairman of Disney Entertainment—as president and chief creative officer under a long-term contract running through March 2030, formalizing a structure that pairs an operationally focused CEO with a creative lead. Alongside these appointments, Disney adopted an Executive Severance Pay Plan that standardizes severance and equity treatment for top executives in the case of terminations without cause or resignations for good reason, signaling a more codified approach to executive transitions as the company emerges from an Iger-led transformation aimed at strengthening studio output, achieving sustained streaming profitability, elevating ESPN’s digital position, and “turbocharging” growth in Disney Experiences, with implications for leadership stability, talent retention, and longer-term shareholder value.

The most recent analyst rating on (DIS) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Walt Disney stock, see the DIS Stock Forecast page.

Walt Disney Nominates Jeffrey Williams to Board

On December 9, 2025, The Walt Disney Company announced the nomination of Jeffrey E. Williams, former Chief Operating Officer of Apple Inc., for election to its Board of Directors at the 2026 annual meeting. With his extensive experience in technology and global operations, Williams is expected to contribute significantly to Disney’s focus on creative storytelling and innovation. The board will expand from 10 to 11 members following the election, reflecting Disney’s commitment to strengthening its leadership as it continues its journey of creativity and excellence.

The most recent analyst rating on (DIS) stock is a Buy with a $117.00 price target. To see the full list of analyst forecasts on Walt Disney stock, see the DIS Stock Forecast page.