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Walt Disney
(NYSE:DIS)
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Rating:71Outperform
Price Target:
$108.00
▼(-2.92% Downside)
Action:Reiterated
Date:08/05/26
DIS scores well on fundamentals and the latest earnings call: profitability and margins have rebounded materially, cash flow is solid, and management reiterated upbeat EPS and streaming margin outlook while increasing planned share repurchases. The main offsets are only neutral-to-weak technical momentum (negative MACD and price below key longer-term moving averages) and remaining execution risks highlighted on the call (international streaming monetization, Asia parks softness, and ad pricing pressure).
Positive Factors
Diversified IP monetization and franchise flywheel
Disney’s integrated model lets successful characters and stories generate revenue across multiple channels. This diversification can improve lifetime returns on intellectual property, support cross-promotion, and reduce dependence on any single entertainment format.
Negative Factors
Material debt and weaker free-cash-flow conversion
Although leverage has improved, Disney still carries substantial debt while cash conversion has weakened. Continued content, parks and cruise investment could limit deleveraging and reduce financial flexibility if operating earnings become volatile.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified IP monetization and franchise flywheel
Disney’s integrated model lets successful characters and stories generate revenue across multiple channels. This diversification can improve lifetime returns on intellectual property, support cross-promotion, and reduce dependence on any single entertainment format.
Read all positive factors
Walt Disney Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by business unit, offering insight into which segments are driving sales and where growth opportunities or risks may exist.
Breaks down revenue by business unit, offering insight into which segments are driving sales and where growth opportunities or risks may exist.
Data provided by:
The Fly
The FlyWalt Disney (DIS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$190.99B
Dividend Yield1.35%
Average Volume (3M)10.72M
Price to Earnings (P/E)22.8
Beta (1Y)0.98
Revenue Growth5.31%
EPS Growth-23.96%
CountryUS
Employees194,040
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)4.86
Shares Outstanding1,726,686,900
10 Day Avg. Volume9,953,784
30 Day Avg. Volume10,721,560
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)1.86
Price to Sales (P/S)2.17
P/FCF Ratio20.31
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$128.26Price Target Upside15.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)6.9
Revenue Forecast (FY)$101.48B
Walt Disney Business Overview & Revenue Model
Company Description
Operating worldwide through its various subsidiaries, The Walt Disney Company (DIS) stands as a prominent global entertainment enterprise. Its vast array of activities is organized into two primary divisions: Disney Media and Entertainment Distrib...
How the Company Makes Money
Disney primarily makes money by creating, distributing, and monetizing entertainment and intellectual property across multiple channels. A major revenue stream comes from its Experiences business (theme parks, resorts, cruises, and related consume...
Walt Disney Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presented multiple clear operating and financial wins — record Experiences revenue/OI, double-digit OI growth in key segments, strong guest and per-cap metrics, streaming margin progress, and advertising/upfront strength — while acknowledging targeted challenges: mixed box office results for select titles, under-monetized international streaming markets, Asia park softness, ad pricing pressure from increased supply, and remaining systems integration work. Management emphasized disciplined capital allocation, continued content and CapEx investment, and technology/AI initiatives to drive future efficiency and growth.Positive Updates
Total Company Revenue Growth
Total company revenue grew 7% year-over-year in fiscal Q3, with total segment operating income up 21% and coming in ahead of prior guidance.
Negative Updates
Mixed Box Office Results for Some Titles
Management acknowledged mixed theatrical performance for certain franchise titles (examples called out include The Mandalorian/Grogu projects and the live-action Moana), underscoring film-level volatility despite franchise long-term value.
Read all updates
Q3-2026 Updates
Positive
Negative
Total Company Revenue Growth
Total company revenue grew 7% year-over-year in fiscal Q3, with total segment operating income up 21% and coming in ahead of prior guidance.
Read all positive updates
Company Guidance
Management said Q3 beat prior guidance — total segment operating income was up 21% and total company revenue grew 7%, with Disney Experiences posting record Q3 revenue of $10.0 billion (up 10% YoY), global guests +4%, domestic parks attendance +3% and domestic per‑cap spending +4%. They reiterated full‑year outlook, raising Experiences to the high end of prior high‑single‑digit OI growth guidance for fiscal 2026 (excluding the 53rd week), reaffirmed double‑digit adjusted EPS growth for fiscal 2026 and 2027, and noted Disney+ delivered a 13% SVOD operating margin in Q3 and is on track for double‑digit SVOD margins in fiscal ’26 (ex‑53rd week). Capital priorities: fiscal ’26 CapEx of about $9 billion, content spend roughly $24 billion, and share repurchases increased to at least $9 billion (up from prior guidance), while the company expects park/cruise investments to generate double‑digit returns over project lifetimes.Walt Disney Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
73
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 98.86B | 94.42B | 91.36B | 88.90B | 82.72B | 67.42B |
| Gross Profit | 37.17B | 35.66B | 32.66B | 29.70B | 28.32B | 22.29B |
| EBITDA | 23.23B | 19.14B | 14.63B | 12.11B | 12.00B | 9.08B |
| Net Income | 8.60B | 12.40B | 4.97B | 2.35B | 3.15B | 2.00B |
Balance Sheet | ||||||
| Total Assets | 204.74B | 197.51B | 196.22B | 205.58B | 203.63B | 203.61B |
| Cash, Cash Equivalents and Short-Term Investments | 5.18B | 5.70B | 6.00B | 14.18B | 11.62B | 15.96B |
| Total Debt | 46.04B | 45.42B | 49.52B | 50.67B | 52.26B | 58.31B |
| Total Liabilities | 87.90B | 82.90B | 90.70B | 92.57B | 95.25B | 101.39B |
| Stockholders Equity | 110.03B | 109.87B | 100.70B | 99.28B | 95.01B | 88.55B |
Cash Flow | ||||||
| Free Cash Flow | 8.29B | 10.08B | 8.56B | 4.90B | 1.07B | 1.99B |
| Operating Cash Flow | 16.99B | 18.10B | 13.97B | 9.87B | 6.01B | 5.57B |
| Investing Cash Flow | -9.11B | -8.04B | -6.88B | -4.64B | -5.01B | -3.16B |
| Financing Cash Flow | -8.02B | -10.37B | -15.29B | -2.72B | -4.74B | -4.38B |
Walt Disney Technical Analysis
Positive
111.25
Price Trends
100.14
Positive
100.86
Positive
103.36
Positive
Market Momentum
2.90
Negative
70.96
Negative
88.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DIS, the sentiment is Positive. The current price of 111.25 is above the 20-day moving average (MA) of 103.57, above the 50-day MA of 100.14, and above the 200-day MA of 103.36, indicating a bullish trend. The MACD of 2.90 indicates Negative momentum. The RSI at 70.96 is Negative, neither overbought nor oversold. The STOCH value of 88.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DIS.
Walt Disney Risk Analysis
Walt Disney disclosed 23 risk factors in its most recent earnings report. Walt Disney reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Walt Disney Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $27.37B | 15.83 | 14.74% | 0.99% | 5.07% | -20.95% | |
75 Outperform | $23.48B | 65.91 | 13.18% | ― | 18.52% | ― | |
74 Outperform | $333.16B | 24.77 | 47.96% | ― | 17.62% | 34.80% | |
71 Outperform | $190.99B | 22.76 | 7.87% | 1.58% | 5.31% | -23.96% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $11.61B | -18.48 | -5.27% | 2.44% | 1.23% | -2381.06% | |
54 Neutral | $72.06B | -22.60 | -9.22% | ― | -5.87% | -512.89% |
* Communication Services Sector Average
DIS
Walt Disney
111.25
-4.72
-4.07%
PSKY
Paramount Skydance
10.67
-4.91
-31.52%
NFLX
Netflix
82.23
-40.38
-32.93%
ROKU
Roku
159.76
64.20
67.18%
FOXA
Fox
70.33
11.82
20.20%
WBD
Warner Bros
28.90
17.10
144.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.