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Walt Disney
(NYSE:DIS)
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Rating:75Outperform
Price Target:
$108.00
▲(1.61% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improved financial performance (stronger margins and steady revenue growth) and a positive earnings outlook (beat-and-raise style momentum in streaming and reiterated multi-year EPS growth targets). Technicals are supportive with positive momentum, while valuation is fair but not especially cheap and cash-flow conversion remains the key financial risk to monitor.
Positive Factors
Diversified revenue streams
Disney’s multi-pronged model—studios, networks, DTC streaming, parks/resorts and consumer products—creates durable cross-platform monetization. Franchises feed theaters, streaming, parks and merchandise, reducing single-market dependence and supporting steady revenue capture across cycles.
Negative Factors
Volatile free cash flow conversion
Despite improved operating results, free cash flow lags reported earnings and exhibits volatility. Inconsistent cash conversion limits internal funding for content, cruises, park expansions and shareholder returns, making the company more reliant on precise timing of receipts and prudent working-capital management.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue streams
Disney’s multi-pronged model—studios, networks, DTC streaming, parks/resorts and consumer products—creates durable cross-platform monetization. Franchises feed theaters, streaming, parks and merchandise, reducing single-market dependence and supporting steady revenue capture across cycles.
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
$172.78B
Dividend Yield1.1%
Average Volume (3M)9.82M
Price to Earnings (P/E)15.3
Beta (1Y)0.96
Revenue Growth4.02%
EPS Growth27.66%
CountryUS
Employees231,000
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)6.26
Shares Outstanding1,736,511,500
10 Day Avg. Volume11,609,134
30 Day Avg. Volume9,823,151
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 Cap1.25
Enterprise Value/Revenue2.23
Enterprise Value/Gross Profit6.00
Enterprise Value/Ebitda11.18
Forecast
1Y Price Target
$131.87Price Target Upside24.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)6.82
Revenue Forecast (FY)$101.79B
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:Mar 07, 2026
(Q2-2026)
| Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented solid operational momentum across multiple fronts: revenue and segment operating income growth, accelerating streaming revenue, record results and global expansion in Experiences, strong franchise content performance, and tangible product/technology initiatives. Management acknowledged near-term headwinds—domestic parks attendance softness, preopening costs, international visitation impacts, linear-to-streaming transitions for networks and sports rights expense, plus macro risks—but provided plans to address them and reiterated multi-year EPS targets. Overall, the positives around content, streaming acceleration, parks expansion and technology initiatives outweigh the limited near-term challenges.Positive Updates
Top-Line and Segment Income Growth
Company revenues grew 7% year-over-year in fiscal Q2 with total segment operating income up 4%, and the quarter outperformed guidance driven by stronger-than-expected revenue.
Negative Updates
Domestic Parks Attendance Weakness and Preopening Costs
Domestic parks attendance declined 1% in Q2; experiences operating income growth (+5%) lagged revenue growth (+7%) primarily due to preopening costs for World of Frozen and the Disney Adventure which reduced flow-through to OI in the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-Line and Segment Income Growth
Company revenues grew 7% year-over-year in fiscal Q2 with total segment operating income up 4%, and the quarter outperformed guidance driven by stronger-than-expected revenue.
Read all positive updates
Company Guidance
Management said Q2 beat expectations with revenue up 7% and total segment operating income up 4% year‑over‑year; streaming entertainment SVOD revenue growth accelerated to 13% in Q2 (from 11% in Q1), advertising revenue grew in double digits and SVOD margins reached the double‑digit range, Disney Experiences set Q2 records with revenue up 7% and segment OI up 5% despite domestic parks attendance being down 1% (global guests +>2%), and cruise capacity is ~40% higher with booked occupancy in line; they expect domestic parks trends to improve in Q3, plan to grow Disney Cruise Line from 8 to 13 ships by 2031, have raised sports OI guidance to mid‑single‑digit growth (reflecting the NFL Network transaction), note Disney Entertainment now generates more than double the revenue from streaming vs. linear, and reiterated adjusted EPS guidance of ~12% growth for fiscal 2026 and double‑digit adjusted EPS growth for fiscal 2027 (both excl. the 53rd week), with the 53rd week providing just under a 2% revenue benefit and roughly a 4% overall uplift.Walt Disney Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 97.26B | 94.42B | 91.36B | 88.90B | 82.72B | 67.42B |
| Gross Profit | 36.14B | 35.66B | 32.66B | 29.70B | 28.32B | 22.29B |
| EBITDA | 19.39B | 19.14B | 14.63B | 12.11B | 12.00B | 9.08B |
| Net Income | 11.22B | 12.40B | 4.97B | 2.35B | 3.15B | 2.00B |
Balance Sheet | ||||||
| Total Assets | 205.22B | 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 | 47.36B | 45.42B | 49.52B | 50.67B | 52.26B | 58.31B |
| Total Liabilities | 89.91B | 82.90B | 90.70B | 92.57B | 95.25B | 101.39B |
| Stockholders Equity | 108.71B | 109.87B | 100.70B | 99.28B | 95.01B | 88.55B |
Cash Flow | ||||||
| Free Cash Flow | 7.11B | 10.08B | 8.56B | 4.90B | 1.07B | 1.99B |
| Operating Cash Flow | 15.79B | 18.10B | 13.97B | 9.87B | 6.01B | 5.57B |
| Investing Cash Flow | -9.04B | -8.04B | -6.88B | -4.64B | -5.01B | -3.16B |
| Financing Cash Flow | -6.97B | -10.37B | -15.29B | -2.72B | -4.74B | -4.38B |
Walt Disney Technical Analysis
Negative
106.29
Price Trends
101.24
Negative
100.99
Negative
105.22
Negative
Market Momentum
-0.99
Positive
44.26
Neutral
21.28
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 106.29 is above the 20-day moving average (MA) of 99.19, above the 50-day MA of 101.24, and above the 200-day MA of 105.22, indicating a bearish trend. The MACD of -0.99 indicates Positive momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 21.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $172.78B | 15.33 | 10.29% | 1.10% | 4.02% | 27.66% | |
74 Outperform | $84.98B | 4.60 | 19.83% | 4.42% | 1.39% | 24.78% | |
72 Outperform | $326.97B | 24.06 | 49.24% | ― | 18.57% | 45.93% | |
70 Outperform | $22.41B | 12.37 | 14.86% | 0.75% | 0.60% | -5.58% | |
62 Neutral | $43.42B | -104.74 | 33.04% | ― | 12.64% | -158.14% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $66.39B | -37.86 | -4.94% | ― | -2.78% | 84.26% |
* Communication Services Sector Average
DIS
Walt Disney
97.41
-23.99
-19.76%
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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.