Walt Disney (DIS) AI Stock Analysis

• Market Cap: $176.28B
• Dividend Yield: 1.1%
• Average Volume (3M): 11.50M
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.82
• Revenue Growth: 3.61%
• EPS Growth: 152.34%
• Country: US
• Employees: 231,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 1.63
• Shares Outstanding: 1,771,519,900
• 10 Day Avg. Volume: 12,541,727
• 30 Day Avg. Volume: 11,502,103
• 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: 1.23
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 6.09
• Enterprise Value/Ebitda: 11.29
• 1Y Price Target: $133.94
• Price Target Upside: 34.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 6.59
• Revenue Forecast (FY): $101.11B

• Rating: 68 Neutral
• Price Target: $108.00 ▲(8.53% Upside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 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.

Experiences (parks) structural strength

Theme parks and resorts are producing record quarter revenue and rising bookings, driven by pricing, attendance and new expansions. This segment provides high-margin, cash-generative, destination-based franchises that monetize IP across admissions, F&B and merchandise, offering durable cash flow and brand loyalty over economic cycles.

Expanded liquidity and covenanted credit access

By securing new 364‑day and five‑year unsecured credit facilities and amending covenants, Disney strengthened short‑ and long‑term liquidity and funding optionality. This structural financing flexibility supports content spend, capex for parks, and strategic M&A while preserving access to capital through business cycles.

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.

Limited streaming subscriber transparency

Withholdings on subscriber metrics reduce clarity on churn, regional mix and ad versus subscription contributions. That opacity impedes assessing sustainability of streaming revenue growth and margin targets, complicating long-term forecasting and investor confidence around recurring revenue durability.

Elevated absolute debt and ongoing issuance

Despite improved leverage ratios, absolute debt remains high and new bond issuance increases long‑dated obligations. Elevated debt raises interest and refinancing risk and can limit strategic flexibility if operating cash flow weakens, constraining investment in content and park expansions during adverse cycles.

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 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) - Streaming subscriptions (Direct-to-Consumer): Disney generates recurring revenue from subscription fees for its streaming services, including Disney+ and Hulu (and, where applicable, ESPN’s direct-to-consumer offerings). Revenue is influenced by subscriber counts, pricing tiers (including ad-supported vs. ad-free plans), geographic mix, and churn. - Advertising: Disney earns advertising revenue from its ad-supported streaming tiers and from its linear television networks and other media properties that sell ad inventory. Ad revenue depends on audience reach, engagement, ad loads, and broader advertising market conditions. - Affiliate / carriage fees: For its linear networks, Disney receives fees from cable, satellite, and virtual MVPD distributors in exchange for carrying its channels. These fees are typically contracted and are driven by distribution footprint and negotiated rates. - Content licensing and distribution: Disney monetizes film and TV content through licensing to third parties (where applicable), home entertainment, and other distribution arrangements. The mix and magnitude can vary depending on Disney’s content windowing strategy and exclusivity decisions for its own streaming services. - Theatrical exhibition: Disney earns box office revenue from theatrical releases through its studios. Profitability depends on global ticket sales, revenue-sharing terms with exhibitors, and marketing/production costs. 2) Disney Experiences (parks, resorts, and destination offerings) - Theme park admissions and in-park spending: Disney generates revenue from ticket sales at its theme parks as well as guest spending inside the parks (food and beverage, merchandise, and other offerings). Performance is driven by attendance, pricing, guest per-capita spending, and capacity/operational factors. - Resorts and lodging: Revenue comes from hotel room bookings and related resort services at Disney destinations. Occupancy rates and average daily rates are key drivers. - Cruise line and vacation offerings: Disney earns revenue from cruise bookings and related onboard spending, as well as guided vacations and other travel products. - Add-on experiences and services: Disney also monetizes premium offerings and add-ons within its destinations (e.g., special events and other upcharge experiences), with revenue tied to guest demand and pricing. 3) Consumer products, licensing, and publishing (brand/IP monetization) - Licensing and royalties: Disney licenses its characters and franchises to third-party manufacturers and retailers for toys, apparel, games, and other branded products, earning royalties and licensing fees. This stream depends on the strength of Disney’s franchises and retail demand. - Merchandise sales: Disney sells branded merchandise through its own channels (including at parks/resorts and other direct retail initiatives). Merchandise revenue is influenced by product assortment, tourism trends, and franchise release cycles. Key factors and relationships affecting earnings - Franchise/IP flywheel: Disney’s well-known IP can be monetized across films/series, streaming, consumer products, and theme park attractions, reinforcing demand across segments. - Distribution partnerships: Linear network carriage agreements and advertising relationships help monetize TV assets; streaming app distribution (e.g., device platforms) can affect reach and subscriber acquisition, though specific partner terms may not be publicly detailed. - Macroeconomic and industry dynamics: Travel demand and consumer discretionary spending affect Experiences; advertising cycles affect media ad sales; and competitive streaming dynamics affect subscriber growth, pricing power, and content spend efficiency.

Walt Disney Financial Statement Overview

Summary

Profitability has rebounded strongly (material net income and margin improvement) and leverage metrics have improved, but the cash-flow picture is weaker: free cash flow is positive yet down sharply in TTM and cash conversion lags net income. Revenue growth also appears uneven, tempering the otherwise strong earnings recovery.

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: 99.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 99.51 is below the 20-day moving average (MA) of 102.07, below the 50-day MA of 106.51, and below the 200-day MA of 111.91, indicating a bearish trend. The MACD of -2.08 indicates Positive momentum. The RSI at 37.31 is Neutral, neither overbought nor oversold. The STOCH value of 24.93 is Neutral, 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	$104.41B	5.14	20.98%	4.42%	0.20%	61.54%
NFLX	76 Outperform	$387.68B	36.11	43.25%	―	15.49%	35.54%
DIS	68 Neutral	$176.28B	21.11	11.35%	1.10%	3.61%	152.34%
FOXA	68 Neutral	$23.33B	34.54	16.22%	0.75%	14.91%	9.30%
WBD	62 Neutral	$68.00B	98.11	2.05%	―	-4.29%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LYV	59 Neutral	$34.59B	66.61	157.65%	―	5.39%	36.94%

Walt Disney Corporate Events

Disney Elevates CEO Josh D’Amaro to Board, Executive Committee

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 Committee. The move consolidates leadership at the top of the company, reinforcing board alignment with management as Disney navigates its competitive media and entertainment landscape.

At the March 18, 2026 annual shareholder meeting, investors re-elected the full slate of board nominees, ratified PricewaterhouseCoopers LLP as independent auditor for fiscal 2026, and approved the advisory vote on executive compensation. Shareholders decisively rejected proposals on cumulative voting, a report on potential religious discrimination risks tied to gift-matching, and an independent review of accessibility and disability inclusion, while a climate-related ROI proposal was withdrawn before the meeting.

The most recent analyst rating on (DIS) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Walt Disney stock, see the DIS Stock Forecast page.

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.