Walt Disney (DIS)
NYSE:DIS
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Walt Disney
(NYSE:DIS)
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Rating:68Neutral
Price Target:
$108.00
▲(1.61% Upside)
Action:ReiteratedDate:03/21/26
The score is driven primarily by a strong profitability recovery and constructive earnings-call momentum (notably streaming margin improvement and solid parks/experiences trends). This is moderated by weaker TTM free-cash-flow conversion and a clearly bearish technical setup (below key moving averages with negative momentum). Valuation is reasonable but not a major tailwind, and recent corporate actions are mildly supportive.
Positive Factors
Streaming profitability momentum
Streaming has moved from multi‑billion dollar losses to positive operating results, with recent quarter revenue and earnings growth and a stated goal of ~10% margin. Sustained margin improvement reduces cash burn, supports reinvestment in content and tech, and converts recurring revenue into durable operating cash flow.
Negative Factors
Weak free cash flow conversion
Free cash flow has fallen materially versus prior periods and converts only a minority of reported net income, signaling weaker cash conversion. Persistently lower FCF relative to earnings can constrain ability to self-fund content, capex and dividends, increasing dependence on external financing during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Streaming profitability momentum
Streaming has moved from multi‑billion dollar losses to positive operating results, with recent quarter revenue and earnings growth and a stated goal of ~10% margin. Sustained margin improvement reduces cash burn, supports reinvestment in content and tech, and converts recurring revenue into durable operating cash flow.
Read all positive factors
Walt Disney (DIS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$182.61B
Dividend Yield1.1%
Average Volume (3M)9.80M
Price to Earnings (P/E)21.1
Beta (1Y)0.89
Revenue Growth3.83%
EPS Growth120.34%
CountryUS
Employees231,000
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)6.80
Shares Outstanding1,771,519,900
10 Day Avg. Volume8,229,993
30 Day Avg. Volume9,803,896
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 Cap1.21
Enterprise Value/Revenue2.30
Enterprise Value/Gross Profit6.18
Enterprise Value/Ebitda11.44
Forecast
1Y Price Target
$132.09Price Target Upside24.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)6.58
Revenue Forecast (FY)$99.98B
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...
How the Company Makes Money
Disney primarily makes money through two major segments—Disney Entertainment and Disney Experiences—supported by licensing and other ancillary monetization of its intellectual property (IP).
1) Disney Entertainment (media, studios, and streaming)...
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 Earnings Call Summary
Earnings Call Date:Feb 02, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized multiple concrete operational and financial improvements — strong box office, significant streaming revenue and earnings growth, major ESPN ratings and strategic NFL asset acquisition, and record quarterly experiences revenue (> $10B) with bookings up 5%. Management also highlighted product initiatives (bundles, unified app, short‑form AI content) and a robust content pipeline. Headwinds and risks include lack of subscriber disclosure, ongoing sports subscriber declines (though improved), limited visibility on international park visitation, historical streaming investment drag (now improving), constraints on the AI content rollout, and no new long‑term guidance updates. On balance, positive operational momentum and measurable improvements outweigh the remaining uncertainties and execution risks.Positive Updates
Strong Box Office Performance
Film studios generated more than $6.5 billion in global box office in calendar year 2025 (third biggest year ever). Disney was #1 at the global box office for the ninth year in the past decade. Three $1B+ titles in 2025 (Avatar: Fire and Ash, Zootopia 2, Lilo & Stitch); Zootopia 2 earned ~ $1.7 billion and became the highest‑grossing animated film ever. To date Disney accounts for 37 of the 60 billion‑dollar films industry‑wide.
Negative Updates
Lack of Subscriber Disclosure
Management declined to disclose subscriber counts this quarter; investors pressed for more transparency and a breakdown of the drivers behind the 13% SVOD subscription revenue growth (U.S. vs. international, subscription vs. ad).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Box Office Performance
Film studios generated more than $6.5 billion in global box office in calendar year 2025 (third biggest year ever). Disney was #1 at the global box office for the ninth year in the past decade. Three $1B+ titles in 2025 (Avatar: Fire and Ash, Zootopia 2, Lilo & Stitch); Zootopia 2 earned ~ $1.7 billion and became the highest‑grossing animated film ever. To date Disney accounts for 37 of the 60 billion‑dollar films industry‑wide.
Read all positive updates
Company Guidance
Management’s guidance focused chiefly on streaming and parks: streaming, which delivered ~12% revenue growth and a little over 50% earnings growth in Q1, is guided to reach roughly a 10% operating margin this fiscal year (versus ~5% last year) as the business has moved from multi‑billion dollar losses (about $1.5B/quarter previously and ~ $4B last year) to generating “more than $1 billion” over the last year; SVOD subscription revenue was up 13% and management reiterated a goal of double‑digit streaming revenue growth. For Experiences, bookings are up 5% for the full year (weighted to the back half) and quarterly revenue topped $10 billion. Management gave no update to fiscal 2027 adjusted EPS or CapEx guidance (so prior guidance stands), and set timing targets for product rollouts: a unified Disney+/Hulu app by year‑end (calendar) and curated 30‑second Sora‑generated character videos on Disney+ in fiscal 2026 under a three‑year OpenAI license.Walt Disney Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
61
Positive
| 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
Positive
106.29
Price Trends
101.62
Positive
105.81
Positive
110.11
Negative
Market Momentum
0.78
Negative
69.00
Neutral
96.25
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 106.29 is above the 20-day moving average (MA) of 98.40, above the 50-day MA of 101.62, and below the 200-day MA of 110.11, indicating a neutral trend. The MACD of 0.78 indicates Negative momentum. The RSI at 69.00 is Neutral, neither overbought nor oversold. The STOCH value of 96.25 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $387.65B | 19.21 | 49.24% | ― | 18.57% | 45.93% | |
75 Outperform | $97.13B | 11.94 | 19.63% | 4.42% | 1.39% | 24.78% | |
68 Neutral | $182.61B | 21.11 | 11.35% | 1.10% | 3.83% | 120.34% | |
68 Neutral | $25.51B | 34.54 | 16.22% | 0.75% | 9.20% | -10.54% | |
62 Neutral | $67.61B | 98.11 | 2.05% | ― | -5.02% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $36.77B | 66.61 | 157.65% | ― | 8.83% | -107.91% |
* Communication Services Sector Average
DIS
Walt Disney
101.31
10.15
11.13%
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62.36
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219.81%
Walt Disney Corporate Events
Executive/Board ChangesShareholder Meetings
Disney Elevates CEO Josh D’Amaro to Board, Executive Committee
Positive
Mar 20, 2026
On March 18, 2026, Disney’s board appointed Chief Executive Officer Josh D’Amaro as a director, effective immediately, with a term running until the 2027 annual shareholder meeting, and also named him to the board’s Executive Com...
Business Operations and StrategyPrivate Placements and Financing
Walt Disney Expands Multibillion-Dollar Global Credit Facilities
Positive
Mar 4, 2026
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 billi...
Business Operations and StrategyExecutive/Board Changes
Disney Announces Leadership Change in Communications Amid Transition
Neutral
Feb 24, 2026
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 tim...
Private Placements and FinancingRegulatory Filings and Compliance
Walt Disney Announces $4 Billion Senior Notes Offering
Neutral
Feb 12, 2026
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 not...
Business Operations and StrategyExecutive/Board Changes
Disney Names Josh D’Amaro CEO in Leadership Transition
Positive
Feb 3, 2026
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...
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.