Walt Disney (DIS) AI Stock Analysis

• Market Cap: $187.87B
• Dividend Yield: 1.1%
• Average Volume (3M): 11.89M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.81
• Revenue Growth: 3.61%
• EPS Growth: 152.34%
• Country: US
• Employees: 177,080
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 1.63
• Shares Outstanding: 1,771,519,900
• 10 Day Avg. Volume: 10,377,774
• 30 Day Avg. Volume: 11,890,473
• 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: 1.21
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 6.37
• Enterprise Value/Ebitda: 11.80
• 1Y Price Target: $135.41
• Price Target Upside: 27.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 6.59
• Revenue Forecast (FY): $101.16B

• Rating: 69 Neutral
• Price Target: $114.00 ▲(7.50% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is supported primarily by a strong earnings rebound and improving margins/leverage, reinforced by positive streaming and parks direction from the latest earnings call. The main constraints are weaker recent free-cash-flow conversion and a clearly bearish technical setup (below key moving averages with negative momentum), with valuation appearing reasonable but not especially cheap.

Positive Factors

Franchise IP & Box Office Leadership

Consistent hit-making and ownership of marquee franchises drives durable cross-platform monetization—theatrical, streaming engagement, merchandise and parks. High-grossing films boost long-term customer acquisition and licensing revenue, reinforcing competitive moat and recurring cash flows.

Streaming Profitability Momentum

Moving from multi-billion-dollar losses to mid- to double-digit margin targets is a structural shift. Achieving sustained positive operating margins expands cash generation, reduces capital drain, and improves ability to fund content and international rollout while supporting long-term free cash flow improvement.

Experiences Segment Strength

Robust parks performance with rising bookings and multi-year expansion projects underpins steady, high-margin cash flows. Experiences deliver pricing power, ancillary spend and high repeat visitation, providing durable revenue diversification and resilience versus media cyclicality over the medium term.

Negative Factors

Weaker Free Cash Flow Conversion

A sharp TTM decline in FCF and FCF materially trailing net income indicates inconsistent cash conversion. That reduces flexibility to fund content, buybacks or debt paydown despite accounting profits, and elevates sensitivity to working capital swings or capital intensity in parks and streaming.

Elevated Absolute Debt Levels

Although leverage ratios improved, the company still carries roughly $45B of debt, which limits strategic optionality. In downturns higher absolute debt raises interest and refinancing risk, constrains M&A and capex flexibility, and increases reliance on consistent operating cash generation.

Sports Subscriber Pressure

Ongoing declines in sports subscribers reflect secular cord-cutting and shifting consumption, which can structurally reduce ESPN’s DTC revenue and ad targeting scale. Persistent subscriber erosion could depress ARPU and undermine one of Disney's key streaming content differentiators over the medium term.

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 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

Profitability has rebounded sharply (net income and margins materially higher) and leverage has improved, but cash flow quality is weaker: free cash flow fell in the TTM period and cash conversion lags earnings, alongside uneven/recently modest revenue growth.

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: 106.05
• 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 106.05 is below the 20-day moving average (MA) of 107.08, below the 50-day MA of 110.44, and below the 200-day MA of 112.66, indicating a bearish trend. The MACD of -1.42 indicates Positive momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 45.21 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	80 Outperform	$113.73B	5.87	21.92%	4.42%	0.20%	61.54%
DIS	69 Neutral	$187.87B	15.38	11.65%	1.10%	3.61%	152.34%
NFLX	69 Neutral	$329.50B	30.88	42.76%	―	15.49%	35.54%
FOXA	68 Neutral	$22.80B	13.32	16.87%	0.75%	14.91%	9.30%
WBD	68 Neutral	$72.29B	155.38	1.36%	―	-4.29%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LYV	59 Neutral	$36.71B	-672.54	-24.68%	―	5.39%	36.94%

Walt Disney Corporate Events

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.

Walt Disney Nominates Jeffrey Williams to Board

On December 9, 2025, The Walt Disney Company announced the nomination of Jeffrey E. Williams, former Chief Operating Officer of Apple Inc., for election to its Board of Directors at the 2026 annual meeting. With his extensive experience in technology and global operations, Williams is expected to contribute significantly to Disney’s focus on creative storytelling and innovation. The board will expand from 10 to 11 members following the election, reflecting Disney’s commitment to strengthening its leadership as it continues its journey of creativity and excellence.

The most recent analyst rating on (DIS) stock is a Buy with a $117.00 price target. To see the full list of analyst forecasts on Walt Disney stock, see the DIS Stock Forecast page.

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.