This analysis covers what Disney does, its financial trend, its valuation against two media peers, and the strongest bull and bear arguments, using Disney's own filings and market data rather than a price prediction.
Disney (DIS) Company Snapshot: Parks, Streaming and Sports at a $188 Billion Market Cap
Disney is a global media and entertainment company that reports three segments. Entertainment holds the film studios, the Disney+ and Hulu streaming services (reported as SVOD, or subscription video on demand), linear TV networks such as ABC, and content sales.
Sports is built around ESPN. Experiences covers the theme parks and resorts, the cruise line and, for now, consumer products, which Disney plans to move into Entertainment starting in the first quarter of fiscal 2027, according to the earnings release. The shares trade on the New York Stock Exchange under the ticker DIS, and Josh D'Amaro leads the company as chief executive.
Per Stock Analysis, Disney carried a market capitalization of $188.28 billion and an enterprise value of $229.13 billion at the October 28, 2026 close, with 1.73 billion shares outstanding. Revenue over the twelve months to June 27, 2026 was $98.86 billion.
The company pays a dividend of $1.50 per share, a yield of 1.38% at that price, and the stock's five-year beta of 1.42 means it has historically moved more sharply than the broad market.
In a portfolio, Disney is a large-cap media holding whose results lean on two spending cycles: consumer travel at its parks and cruise ships, and subscription and advertising spending on its networks and streaming services. That mix differs from a streaming-focused company such as Netflix or a diversified media group such as Comcast.
Disney Financials Trend: Revenue Climbs to $98.9 Billion as Earnings Swing on One-Time Items
Disney's top line has grown in every fiscal year since 2022. According to Stock Analysis, revenue rose from $82.72 billion in fiscal 2022 to $94.43 billion in fiscal 2025 and reached $98.86 billion over the twelve months to June 27, 2026.
Operating income grew much faster over the same span, from $6.83 billion to $15.43 billion, a sign of improving profitability across the business.
| Fiscal year | Period ending | Revenue | Operating income | Net income | EPS | Free cash flow |
|---|
| FY2022 | Oct 1, 2022 | $82.72B | $6.83B | $3.15B | $1.72 | $1.07B |
| FY2023 | Sep 30, 2023 | $88.90B | $9.33B | $2.35B | $1.29 | $4.90B |
| FY2024 | Sep 28, 2024 | $91.36B | $12.32B | $4.97B | $2.72 | $8.56B |
| FY2025 | Sep 27, 2025 | $94.43B | $14.09B | $12.40B | $6.85 | $10.08B |
| Trailing 12 months | Jun 27, 2026 | $98.86B | $15.43B | $8.60B | $4.84 | $8.29B |
Figures per Stock Analysis. Disney's fiscal year ends in late September or early October.
Net income and EPS have been far less steady than revenue. EPS of $6.85 in fiscal 2025 sits well above the $4.84 earned over the latest twelve months, even though operating income kept rising.
The gap comes from items outside day-to-day operations. In the fiscal third quarter of 2025, for example, Disney reported diluted EPS of $2.92 against adjusted EPS of $1.61, and in the fiscal third quarter of 2026 it recorded an $812 million impairment on its investment in A+E, per the earnings release. That is why Disney frames its guidance around adjusted EPS and segment operating income.
Fiscal Q3 2026: Revenue Up 7% to $25.2 Billion, Adjusted EPS Up 28%
According to Disney's earnings release, revenue for the quarter ended June 27, 2026 rose 7% to $25.2 billion, total segment operating income rose 21% to $5.6 billion, and adjusted EPS rose 28% to $2.06.
Diluted EPS fell to $1.51 from $2.92 because of the non-operating items described above. Free cash flow for the quarter rose 63% to $3.07 billion, although free cash flow for the first nine months of fiscal 2026 fell 24% to $5.74 billion as cash from operations declined 8%.
| Metric | Q3 FY2026 | Q3 FY2025 | Change |
|---|
| Revenue | $25,248M | $23,650M | +7% |
| Total segment operating income | $5,555M | $4,575M | +21% |
| Diluted EPS | $1.51 | $2.92 | -48% |
| Adjusted EPS | $2.06 | $1.61 | +28% |
| Free cash flow | $3,072M | $1,889M | +63% |
By segment, the quarter showed a clear split between growth engines and a drag, per the release:
| Segment | Q3 FY2026 revenue | Revenue change | Q3 FY2026 operating income | Q3 FY2025 operating income | Operating income change |
|---|
| Entertainment | $11,345M | +6% | $1,680M | $1,022M | +64% |
| Sports | $4,500M | +4% | $858M | $1,037M | -17% |
| Experiences | $9,968M | +10% | $3,017M | $2,516M | +20% |
What Disney's Own Guidance Forecasts for Fiscal 2026 and 2027
Disney does not publish a share price forecast, but its management guidance is the most concrete forward-looking information available. Per the fiscal Q3 2026 earnings release, Disney expects:
- Adjusted EPS growth of approximately 12% in fiscal 2026, excluding the impact of the 53rd week, or approximately 16% including it.
- Q4 fiscal 2026 total segment operating income of approximately $4.9 billion, including the 53rd week, which contributes about $600 million.
- Share repurchases of at least $9 billion in fiscal 2026, a raised target, alongside reiterated guidance for cash from operations of at least $19 billion and capital expenditures of about $9 billion.
- For full-year fiscal 2026, excluding the 53rd week: Experiences operating income growth at the high end of its prior high-single-digit guidance, mid-single-digit Sports operating income growth, double-digit Entertainment operating income growth and a double-digit Entertainment SVOD operating margin.
- Double-digit adjusted EPS growth in fiscal 2027, excluding the impact of the 53rd week, which Disney will lap in Q4 fiscal 2027.
Guidance is management's expectation, not a certainty, and the 53rd week flatters fiscal 2026 growth in a way that reverses a year later, so the figures that exclude the extra week are the cleaner base.
Disney Valuation vs Netflix and Comcast: 14.4 Times Forward Earnings
Per Stock Analysis data at the October 28, 2026 close, Disney trades at about 14.4 times forward earnings and 22.5 times trailing earnings. The gap partly reflects the one-time items in trailing GAAP earnings. The table compares Disney with Netflix (NFLX), its most direct streaming rival, and Comcast (CMCSA), which, like Disney, owns theme parks, a film studio and a streaming service.
| Metric (Oct 28, 2026 close) | Disney (DIS) | Netflix (NFLX) | Comcast (CMCSA) |
|---|
| Share price | $109.04 | $61.99 | $21.57 |
| Market cap | $188.28B | $254.55B | $76.60B |
| Trailing P/E | 22.54 | 17.94 | 6.87 |
| Forward P/E | 14.44 | 17.26 | 6.32 |
| Price to book (P/B) | 1.73 | 8.69 | 0.84 |
| Price to sales (P/S) | 1.91 | 5.12 | 0.62 |
| EV/EBITDA | 10.95 | 16.54 | 4.66 |
| PEG ratio | 4.17 | 0.83 | Not available |
Figures per Stock Analysis for Disney, Netflix and Comcast.
Three readings stand out. First, on forward earnings Disney is cheaper than Netflix (14.44 versus 17.26) but more than twice as expensive as Comcast (6.32), which places it in the middle of this peer group. Second, enterprise value to EBITDA, which accounts for Disney's debt, tells the same story: Disney's 10.95 sits between Netflix at 16.54 and Comcast at 4.66. Third, Disney's price-to-book ratio of 1.73 is far below Netflix's 8.69, so investors pay much less for each dollar of Disney's net assets.
The PEG ratio, which compares the P/E with expected earnings growth, adds a counterweight: Stock Analysis lists Disney at 4.17 against 0.83 for Netflix, meaning the growth rate built into that data is low relative to Disney's P/E.
On this evidence, Disney looks fairly valued rather than clearly cheap or clearly expensive. Its forward multiple is modest relative to management's guidance for double-digit adjusted EPS growth into fiscal 2027, but the high PEG and the wide gap to Comcast's single-digit multiples show it is not a deep-value case either. Where the valuation goes from here depends largely on whether Disney delivers the growth it has guided to.
Bull Thesis: Parks Growth, Profitable Streaming and $9 Billion in Buybacks
Experiences is Disney's profit engine. According to the earnings release, segment operating income rose 20% to $3.017 billion in fiscal Q3 2026, with domestic parks and experiences operating income up 27% to $2.088 billion. As reported by BlogMickey, domestic park attendance rose 3% and per capita spending rose 4%, and the segment's operating margin was about 30% for the first nine months of fiscal 2026. Capacity is also growing at sea: per BlogMickey, the Disney Destiny and Disney Adventure ships together increased stateroom capacity by roughly 50% versus the prior-year quarter.
Streaming has turned into a real profit contributor. SVOD operating income more than doubled to $712 million from $329 million, a margin of about 13%, per Disney's release. Subscription fees rose 15%, with 9 points coming from more subscribers and 3 points from higher effective rates, and the company reported a decline in Disney+ churn across its domestic and international services. Disney expects a double-digit SVOD operating margin for full-year fiscal 2026, excluding the 53rd week.
Capital returns are accelerating. Disney repurchased $7.245 billion of stock in the first nine months of fiscal 2026, compared with $2.496 billion a year earlier, and now targets at least $9 billion for the full year. It also plans to use roughly $1.2 billion in cash from the sale of its 50% stake in A+E to an affiliate of Hearst for additional buybacks, according to the release. In his letter, chief executive Josh D'Amaro wrote, "We believe our shares are undervalued." That is the company's own view, not independent analysis, but the buyback pace shows management is acting on it.
The franchise machine is still working. Per the release, Toy Story 5 has surpassed $1 billion in global box office, and Entertainment operating income rose 64% to $1.680 billion in the quarter. Add a forward P/E below Netflix's alongside guidance for double-digit adjusted EPS growth in fiscal 2027, and bulls argue the current multiple does not demand much from the business.
Bear Thesis: Sports Costs, Asia Parks Softness and Profits That May Not Repeat
According to the earnings release, Sports operating income fell 17% to $858 million, a steeper drop than Disney's prior guidance of about 14%. Programming and production costs rose 10% to $3.05 billion on contractual rate increases and new rights, and the NBA contract renewal shifted costs from the first half of the year into the third quarter. Disney also cited four-game sweeps in early rounds of the NBA Playoffs as a contributor to the shortfall.
International parks are softening. International Parks and Experiences operating income fell 13% to $369 million even as revenue rose 6%, and Disney said softness at its Asia parks is expected to continue in fiscal Q4, per the release.
Part of the quarter's strength may not repeat. Roughly four points of the 20% Experiences operating income growth came from an approximately $100 million tariff refund that reversed payments made earlier in the fiscal year. The release also says the roughly 13% SVOD margin benefited in part from the timing of marketing and programming spend.
SVOD advertising revenue rose only 3%, as an 8% gain from more impressions was partly offset by a 4% drop in rates, which Disney linked to a softer demand environment created by marketplace supply growth. The company also warned that Q4 Entertainment results will reflect Moana's box office coming in below its prior expectations, along with a softer than expected advertising environment, particularly in domestic SVOD.
Free cash flow for the first nine months of fiscal 2026 fell 24% to $5.74 billion, per the release, while Stock Analysis puts total debt at $46.04 billion against $5.19 billion in cash, or about $40.86 billion in net debt. Funding at least $9 billion of buybacks plus a dividend while carrying that debt leaves less room if earnings disappoint.
Key Risks for Disney Stock: Regulation, Consumer Demand and Execution
- Regulatory and political risk: as reported by Reuters, Disney and ABC sued the Federal Communications Commission (FCC) on August 18, 2026, asking a federal court in Washington for a temporary restraining order to halt license renewal proceedings for eight ABC stations. Those licenses were not scheduled for consideration before October 2028, and FCC chair Brendan Carr ordered the early reviews in April, the first such early review in more than 50 years, per the report.
- Consumer and macro risk: Experiences depends on discretionary travel and leisure spending. Disney has already cited consumer softness in Asia, and a broader slowdown would weigh on attendance and per capita spending.
- Execution and reporting risk: under chief executive Josh D'Amaro, consumer products moves from Experiences into Entertainment in fiscal 2027, which will change segment comparisons for a time.
- Volatility risk: per Stock Analysis, the shares fell 2.94% over the 52 weeks to October 28, 2026 and ranged from $92.19 to $117.09, so they can swing sharply around earnings and news.
What to Watch at Disney's November 17, 2026 Results
Disney will release fiscal full-year and fourth quarter 2026 results before regular trading opens on Tuesday, November 17, 2026, with a webcast at 8:30 a.m. ET, as reported by BlogMickey. Signals that will test the guidance:
- Whether Q4 total segment operating income lands near the guided $4.9 billion, about $600 million of which comes from the 53rd week.
- Whether full-year adjusted EPS growth reaches about 12% excluding the 53rd week.
- Any update to the fiscal 2027 outlook, which currently calls for double-digit adjusted EPS growth excluding the 53rd week.
- Asia parks trends, SVOD margin and advertising, and whether Sports operating income meets the full-year mid-single-digit growth target after a 17% third-quarter decline.
This article is for education and information only and is not investment advice. Investment decisions are your own after doing your own research.
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