Walt Disney (DIS) AI Stock Analysis

• Market Cap: $187.15B
• Dividend Yield: 0.95%
• Average Volume (3M): 10.57M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.80
• Revenue Growth: 3.61%
• EPS Growth: 152.34%
• Country: US
• Employees: 177,080
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 1.11
• Shares Outstanding: 1,785,288,800
• 10 Day Avg. Volume: 10,286,547
• 30 Day Avg. Volume: 10,571,372
• 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: 1.33
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 6.98
• Enterprise Value/Ebitda: 12.94
• 1Y Price Target: $137.87
• Price Target Upside: 30.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 6.62
• Revenue Forecast (FY): $100.66B

• Rating: 76 Outperform
• Price Target: $122.00 ▲(15.38% Upside)

Disney's strong earnings growth and strategic advancements in streaming and experiences segments are major positives. However, technical indicators suggest bearish momentum, and valuation metrics are not particularly attractive. The company's financial health remains robust despite some concerns over revenue and cash flow.

Positive Factors

Revenue Growth

Disney's robust revenue growth highlights its ability to expand market reach and capitalize on its diverse entertainment portfolio, supporting long-term financial health.

Strategic Initiatives

Integrating Hulu into Disney+ enhances user experience and operational efficiency, potentially increasing engagement and advertising revenue, strengthening Disney's streaming position.

Cash Flow Generation

Strong cash flow growth indicates Disney's effective cash conversion and ability to fund strategic initiatives, ensuring long-term operational and financial stability.

Negative Factors

Content Distribution Challenges

Loss of distribution on YouTube TV could reduce Disney's reach and advertising revenue, highlighting challenges in negotiating favorable terms with digital platforms.

Market Challenges in China

Economic stress in China could limit Disney's growth potential in a key market, affecting revenue from parks and consumer products in the region.

Content Overlap Challenges

Content overlap and tough comparisons may pressure revenue growth, necessitating strategic content planning to maintain competitive advantage and audience engagement.

Walt Disney Business Overview & Revenue Model

Company Description

The Walt Disney Company, commonly known as Disney, is a diversified multinational entertainment and media conglomerate headquartered in Burbank, California. It operates through various segments including Disney Media Networks, Disney Parks, Experiences and Products, Disney Studio Entertainment, and Disney Direct-to-Consumer & International. The company's core offerings encompass film and television production, theme parks and resorts, merchandise licensing, and direct-to-consumer streaming services such as Disney+, Hulu, and ESPN+. Disney is renowned for its iconic brands, including Disney, Pixar, Marvel, Star Wars, and National Geographic.

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

Walt Disney demonstrates strong profitability with robust EBIT and EBITDA margins, moderate leverage, and effective equity utilization. However, concerns arise from a slight revenue decline and a decrease in free cash flow growth.

Income Statement

Walt Disney's income statement shows strong profitability with a gross profit margin of 37.76% and a net profit margin of 13.14% for the latest year. Despite a slight revenue decline of 3.8% in the most recent year, the company has demonstrated robust EBIT and EBITDA margins of 14.63% and 20.27%, respectively, indicating efficient cost management and operational strength.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.38, indicating moderate leverage. Return on equity stands at 11.29%, showcasing effective use of equity to generate profits. The equity ratio is strong, suggesting a stable asset base supported by equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 12.74%, which could be a concern. However, the operating cash flow to net income ratio is 0.53, indicating decent cash generation relative to net income. The free cash flow to net income ratio of 0.56 suggests that a significant portion of net income is converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	94.42B	―	94.42B	91.36B	88.90B	82.72B
Gross Profit	35.66B	―	35.66B	32.66B	29.70B	28.32B
EBITDA	19.23B	―	19.14B	14.63B	12.11B	12.00B
Net Income	12.40B	―	12.40B	4.97B	2.35B	3.15B
Balance Sheet
Total Assets	197.51B	―	197.51B	196.22B	205.58B	203.63B
Cash, Cash Equivalents and Short-Term Investments	5.70B	―	5.70B	6.00B	14.18B	11.62B
Total Debt	42.03B	―	42.03B	49.52B	50.67B	52.26B
Total Liabilities	82.90B	―	82.90B	90.70B	92.57B	95.25B
Stockholders Equity	109.87B	―	109.87B	100.70B	99.28B	95.01B
Cash Flow
Free Cash Flow	11.99B	―	10.08B	8.56B	4.90B	1.07B
Operating Cash Flow	18.10B	―	18.10B	13.97B	9.87B	6.01B
Investing Cash Flow	-8.04B	―	-8.04B	-6.88B	-4.64B	-5.01B
Financing Cash Flow	-10.37B	―	-10.37B	-15.29B	-2.72B	-4.74B

Walt Disney Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 105.74 is below the 20-day moving average (MA) of 107.19, below the 50-day MA of 110.16, and below the 200-day MA of 109.52, indicating a bearish trend. The MACD of -1.86 indicates Negative momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of 71.71 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
FOXA	77 Outperform	$27.76B	14.91	17.33%	0.83%	14.91%	9.30%
DIS	76 Outperform	$187.15B	15.31	11.78%	0.95%	3.61%	152.34%
WBD	70 Outperform	$60.78B	130.76	1.36%	―	-4.29%	―
CMCSA	69 Neutral	$98.46B	4.49	24.73%	4.76%	0.20%	61.54%
NFLX	69 Neutral	$462.42B	45.59	42.86%	―	15.49%	35.54%
LYV	64 Neutral	$29.85B	93.82	79.63%	―	5.39%	36.94%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Walt Disney Corporate Events

Disney’s 2025 Earnings: Strong Growth and Optimistic Outlook

The Walt Disney Company, a leading entertainment and media conglomerate, operates in various sectors including film, television, and theme parks, and is renowned for its iconic brands and franchises.

Disney’s Earnings Call Highlights Strong Growth and Strategic Wins

The Walt Disney Company’s recent earnings call painted a largely positive picture, underscoring strong earnings growth, successful content releases, and strategic advancements in direct-to-consumer services. Despite challenges such as the YouTube TV dispute and increased content costs, the positive aspects, including record box office achievements and robust cash flow, significantly outweighed the negatives.

Walt Disney Extends CFO Hugh Johnston’s Contract

On November 10, 2025, The Walt Disney Company extended the employment agreement of Hugh F. Johnston, the Senior Executive Vice President and Chief Financial Officer, to January 31, 2029. The amendment increases Johnston’s long-term equity incentive annual award to $16,500,000, starting from the current fiscal year, while maintaining his current base salary and annual bonus target. This move underscores Disney’s commitment to retaining key leadership and may impact the company’s financial strategies and stakeholder interests.

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 Extends Horacio Gutierrez’s Employment Agreement

On November 4, 2025, The Walt Disney Company extended the employment agreement of Horacio E. Gutierrez, its Senior Executive Vice President, Chief Legal and Compliance Officer, to September 30, 2028, and changed his title to Senior Executive Vice President, Chief Legal and Global Affairs Officer. The amendment increases his long-term equity incentive annual award value to $12,365,000 but does not alter his base salary or target annual bonus. This adjustment reflects Disney’s commitment to retaining key executives and ensuring leadership stability, potentially impacting the company’s strategic legal and global affairs operations.

The most recent analyst rating on (DIS) stock is a Buy with a $127.00 price target. To see the full list of analyst forecasts on Walt Disney stock, see the DIS Stock Forecast page.

Walt Disney Extends Kristina Schake’s Employment Agreement

On October 15, 2025, The Walt Disney Company extended the employment agreement of Kristina K. Schake, its Senior Executive Vice President and Chief Communications Officer, to June 30, 2027. The amendment also increased her annual base salary to $875,000, effective immediately, while her bonus and long-term equity incentive targets remained unchanged.

The most recent analyst rating on (DIS) stock is a Buy with a $138.00 price target. To see the full list of analyst forecasts on Walt Disney stock, see the DIS Stock Forecast page.

Walt Disney Extends Sonia Coleman’s Employment Agreement

On September 27, 2025, The Walt Disney Company extended the employment agreement of Sonia L. Coleman, now titled Senior Executive Vice President and Chief People Officer, to June 30, 2028. The amendment increased her base salary to $1,000,000, with a target annual bonus of 175% of her salary starting in fiscal year 2025, and a long-term equity incentive of 375% of her salary starting in fiscal year 2026, reflecting the company’s commitment to retaining key leadership.

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.