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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on DIS

The Walt Disney Company's recent performance has been driven by several positive factors. The company's streaming segment has turned profitable, with revenue and operating income increasing. Its parks and experiences segment has also seen significant growth, generating high-margin income. Additionally, Disney's cash flow generation has surged, leading to a 50% dividend hike and larger share buybacks, which should benefit shareholders. The company's movie business is also gaining momentum. These developments have positioned Disney for potential long-term growth. (Source: various news articles)

1.c. Company Highlights

2. Disney's Q1 2026 Earnings: A Strong Start with Profitable Streaming

The Walt Disney Company's first quarter 2026 financial results showcased a robust performance across its segments, with the company reporting an EPS of $1.63, beating estimates of $1.57. Revenue growth was driven by the experiences segment, which exceeded $10 billion for the first time, and a 13% increase in SVOD revenue due to pricing, bundling, and growth in North America and internationally. The streaming business, which previously incurred significant losses, is now profitable, with a 12% revenue growth and 50% earnings growth in the quarter.

Publication Date: Feb -04

📋 Highlights
  • Film Studios Revenue:: Generated over $6.5 billion in global box office in 2025, third-highest in company history.
  • Zootopia 2 Success:: Earned $1.7 billion, becoming Hollywood’s highest-grossing animated film and top 10 all-time.
  • Streaming Profitability:: Achieved 12% revenue growth and 50% earnings growth, now profitable after prior $1B quarterly losses.
  • Experiences Segment Growth:: Quarterly revenue surpassed $10 billion for the first time, driven by theme park expansions and cruise launches.
  • Upcoming Film Slate:: Includes high-anticipated titles like The Mandolorian and Grogu, Toy Story 5, and Avengers: Doomsday for 2026/2027.

Segment Performance

The entertainment segment's film studios generated over $6.5 billion in global box office in 2025, making it their third biggest year ever, with notable releases including Avatar: Fire and Ash, Zootopia 2, and Lilo and Stitch. The company is excited about upcoming titles, including The Devil Wears Prada 2, The Mandalorian and Grogu, Toy Story 5, the live-action Moana, and Avengers: Doomsday. In streaming, Disney Plus saw encouraging results from investments in local content and technology improvements.

Strategic Focus

CEO Robert A. Iger emphasized that the company's intellectual property (IP) is valuable, and recent deals, such as the one with Warner Brothers, validate this. Iger believes Disney has a great hand and doesn't need to buy more IP, instead focusing on creating its own. The company will continue to leverage its IP across businesses, including film, streaming, and theme parks.

Valuation and Outlook

Disney's current valuation metrics, including a P/E Ratio of 15.2 and an EV/EBITDA of 11.72, indicate a reasonable valuation. Analysts estimate next year's revenue growth at 4.2%. With the streaming business now profitable and a strong slate of upcoming titles, Disney is well-positioned for growth. The company's plans to continue investing in its experiences business, expanding in every location, and on the high seas, are expected to drive long-term profitability.

Guidance and Future Plans

There was no update on fiscal 2027 adjusted EPS growth, implying no change. Bookings for the full year are up 5%, weighted more toward the back half. Disney is integrating AI-generated content into Disney Plus through a deal with Sora, enabling short-form video creation and curation. This feature is expected to enhance engagement and provide a new offering, driving growth and increasing user engagement.

3. NewsRoom

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Walt Disney (NYSE:DIS) versus Sphere Entertainment (NYSE:SPHR) Head to Head Contrast

Feb -22

Source: defenseworld.net

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3 Reasons To Buy Disney In 2026

Feb -19

Source: seekingalpha.com

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Disney's Leadership Change Is Exciting, But Think Very Long-Term On The Shares

Feb -18

Source: seekingalpha.com

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Paramount's Motives Questioned By FCC Commissioner As Stephen Colbert Alleges CBS Prevented James Talarico From Appearing

Feb -18

Source: feeds.benzinga.com

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ValueAct Capital's Strategic Move: BlackRock Inc. Takes Center Stage with 10.59% Portfolio Share

Feb -17

Source: gurufocus.com

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Can Disney Stock Outperform Its Peers In 2026?

Feb -17

Source: forbes.com

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Lee Ainslie's Strategic Moves: Alphabet Inc. Takes Center Stage with 3.85% Portfolio Share

Feb -16

Source: gurufocus.com

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Disney Fights Against TikTok Parent's AI Video Model. Big Money Is at Stake.

Feb -16

Source: barrons.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.42%)

6. Segments

Experiences - Domestic

Expected Growth: 5.4%

Disney's domestic entertainment and leisure experiences are driven by increasing demand for immersive experiences, innovative theme park attractions, and a strong brand portfolio, including Marvel, Star Wars, and Pixar.

Experiences - International

Expected Growth: 7.4%

The Walt Disney Company's international experiences driven by increasing demand for Disney+, ESPN+, and Hulu, as well as growth in theme park attendance, will drive segment growth. Expansion into new markets, such as India and Latin America, will also contribute to growth.

Entertainment - Direct-to-consumer

Expected Growth: 24.3%

Growing demand for online streaming, expansion into new markets, and a strong content pipeline, including popular franchises like Marvel and Star Wars, will drive The Walt Disney Company's direct-to-consumer entertainment segment growth.

Entertainment - Content Sales/licensing and Other

Expected Growth: 7.9%

Disney’s iconic brands, such as Marvel, Star Wars, and Pixar, drive growth in entertainment content sales and licensing. The company’s strategic expansion into digital streaming and theme park expansions will further fuel growth.

Sports - Domestic

Expected Growth: 4.5%

The Walt Disney Company's Sports Domestic growth is driven by increasing popularity of ESPN+, strong advertising sales, and growing demand for live sports events, contributing to its domestic segment growth.

Entertainment - Linear Networks

Expected Growth: 3.8%

The Walt Disney Company's traditional television channels are expected to grow driven by increasing demand for live sports and news, growth in affiliate revenue, and the company's strong brand portfolio, including ABC, ESPN, and Disney Channel, which will help it to maintain its market position.

Sports - International

Expected Growth: 7.4%

Disney's international sports coverage growth is driven by increasing demand for premium sports content, expansion into emerging markets, and strategic partnerships with sports leagues and federations.

Sports - Star India

Expected Growth: 12.3%

Strong demand for sports coverage, especially cricket, drives growth. Star India’s Disney subsidiary benefits from its established presence and investments in premium content and digital platforms.

Experiences - Consumer Products

Expected Growth: 10.4%

Driven by growth in theme park attendance, expansion of e-commerce platforms, and increasing demand for licensed merchandise, Disney Consumer Products and Experiences is poised for continued growth.

Eliminations

Expected Growth: 7.3%

Driven by synergy benefits from 21st Century Fox acquisition, growth in affiliate fees, and increasing demand for Disney's intellectual property.

7. Detailed Products

Disney+

A streaming service offering a wide range of Disney, Pixar, Marvel, Star Wars, and National Geographic content

Theme Park Tickets

Admission tickets to Disney theme parks, including Disneyland, Disney World, and Disneyland Paris

Disney Cruise Line

Luxury cruise vacations to the Caribbean, Alaska, and Europe with Disney-themed entertainment and activities

Disney Publishing

Books, magazines, and digital media featuring Disney characters and stories

Disney Store Merchandise

Toys, clothing, and collectibles featuring Disney, Pixar, Marvel, and Star Wars characters

ESPN+

A sports streaming service offering exclusive sports content, including MLB, NHL, and MLS games

ABC Television Network

A broadcast television network airing popular TV shows, news, and sports

Marvel Comics

Comic books, graphic novels, and digital comics featuring Marvel characters

Lucasfilm

Film and television productions, including Star Wars and Indiana Jones franchises

Disney Theatrical Productions

Live stage shows and musicals, including The Lion King, Aladdin, and Frozen

8. The Walt Disney Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Disney is low due to its unique brand recognition and diversified business segments, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

Disney's customers have some bargaining power due to the availability of alternative entertainment options, but the company's strong brand loyalty and diversified offerings mitigate this power.

Bargaining Power Of Suppliers

Disney has a strong bargaining position with its suppliers due to its large scale and diversified business segments, allowing it to negotiate favorable terms.

Threat Of New Entrants

The threat of new entrants in Disney's industries is low due to the high barriers to entry, including significant capital requirements and the need for established brand recognition.

Intensity Of Rivalry

The intensity of rivalry in Disney's industries is high due to the presence of established competitors, such as Comcast and AT&T, and the ongoing competition for market share and talent.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.87%
Debt Cost 3.95%
Equity Weight 68.13%
Equity Cost 10.92%
WACC 8.70%
Leverage 46.77%

11. Quality Control: The Walt Disney Company passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nexstar Media

A-Score: 6.9/10

Value: 7.0

Growth: 8.2

Quality: 5.4

Yield: 7.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Alphabet

A-Score: 5.8/10

Value: 1.0

Growth: 8.2

Quality: 8.2

Yield: 0.0

Momentum: 10.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Netflix

A-Score: 5.6/10

Value: 1.5

Growth: 9.0

Quality: 8.1

Yield: 0.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Sirius XM

A-Score: 5.5/10

Value: 8.5

Growth: 3.8

Quality: 5.5

Yield: 7.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Walt Disney

A-Score: 5.4/10

Value: 5.1

Growth: 6.8

Quality: 6.3

Yield: 1.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
T-Mobile US

A-Score: 5.2/10

Value: 4.5

Growth: 7.1

Quality: 5.8

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

105.58$

Current Price

105.58$

Potential

-0.00%

Expected Cash-Flows