The Walt Disney Company

DIS
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$25.2B
Q2 FY2026 · +7% YoY
TTM ROIC
8%
FY2025 (est.) · NOPAT / Total Invested Capital (reported, includes Fox goodwill/intangibles); NOPAT = Segment OI less corporate costs, tax-effected at 25% · WACC ~8.5% · Moat spread +0pp
Margin Profile
Operating 18.6%
FCF 10.7%
FY2025 (est.)
Net Debt
$39.0B
Cash $6.0B · Debt $45.0B · FY2024

Business Overview


ticker: DIS step: 01 generated: 2026-05-13 source: quick-research

The Walt Disney Company (DIS) — Business Overview

Business Description

The Walt Disney Company is one of the world's largest entertainment conglomerates, operating through three segments: Disney Entertainment (streaming services Disney+/Hulu/ESPN+, linear networks ABC/FX/National Geographic, and film/TV studios), ESPN (sports broadcasting and DTC transition), and Disney Experiences (theme parks, cruise lines, consumer products, and licensing). Disney's content IP — Marvel, Star Wars, Pixar, Disney Animation, National Geographic — is the engine that monetizes across all three segments through theatrical releases, streaming, parks attractions, and consumer products.

Revenue Model

Disney generates revenue through: (1) streaming subscriptions (Disney+, Hulu, ESPN+) and advertising; (2) linear TV affiliate fees and advertising (ABC, ESPN linear, FX); (3) theatrical film and home entertainment; (4) theme park admissions, resort stays, food & beverage, and merchandise; (5) cruise line tickets; and (6) consumer products licensing. The strategic shift is from high-margin but declining linear TV toward high-growth streaming and experiences, with ESPN's DTC transition being the next major catalyst.

Products & Services

  • Disney+ — ~110–115M subscribers globally (flagship streaming, Disney/Marvel/Star Wars/Pixar)
  • Hulu — ~50M subscribers (general entertainment, FX, live TV option)
  • ESPN+ — ~25M subscribers (sports streaming); ESPN DTC standalone service launched 2025
  • ABC, ESPN linear, FX — legacy broadcast and cable networks generating affiliate fees + advertising
  • Film studios — Walt Disney Pictures, Marvel Studios, Pixar, Lucasfilm, 20th Century Studios
  • Disney Experiences — Walt Disney World, Disneyland, 6 international parks, Disney Cruise Line (expanding fleet), consumer products/licensing
  • Venu Sports JV — sports streaming joint venture with Fox and WBD (launched late 2024)

Customer Base & Go-to-Market

Disney serves global consumers across all income levels and ages, with particular strength in family/premium demographics. Streaming subscribers number ~150M across the bundle. Park visitors span domestic and international tourists. The bundle strategy (Disney+/Hulu/ESPN+) drives higher ARPU and reduces churn. Disney's moat is the IP library — characters and franchises that command pricing power across every distribution channel.

Competitive Position

Disney competes in streaming (vs. Netflix, Max, Amazon, Apple TV+), sports broadcasting (vs. Fox, Comcast/NBCUniversal, Amazon), theme parks (vs. Universal, SeaWorld, regional parks), and film (vs. every major studio). Its IP library is unmatched: Marvel, Star Wars, Pixar, and Disney Animation collectively represent the most valuable family entertainment franchises in history. The $60B 10-year Experiences capex plan (2024–2034) — including new lands, ships, and an Abu Dhabi park — cements its parks moat for a generation.

Key Facts

  • Founded: 1923 (by Walt and Roy Disney)
  • Headquarters: Burbank, California
  • Employees: ~220,000
  • Exchange: NYSE
  • Sector / Industry: Communication Services / Entertainment
  • Market Cap: ~$190B (at ~$105/share, ~1.8B shares)
  • Fiscal Year: Ends September 30

Financial Snapshot


ticker: DIS step: 04 generated: 2026-05-13 source: quick-research

The Walt Disney Company (DIS) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $82.7B $88.9B $91.4B +2.8%
Operating Income ~$4.8B $4.8B $7.6B +58.3%
Net Income ~$3.1B ~$2.4B ~$4.9B +104%
Adj. EPS (non-GAAP) $3.53 $3.76 $4.97 +32.2%

FY2025: Management guiding for double-digit EPS growth vs. FY2024. FCF reached $10.1B (+18% vs FY2024 $8.6B). Q1 FY2026: SVOD operating income +72% to $450M; Experiences record $10B revenue / $3.3B operating income.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$12.5B
Free Cash Flow $8.6B
Capital Expenditures ~$5.0B
Cash & Equivalents ~$6.0B
Total Debt ~$45B

FY2025 FCF: $10.1B (+18%). $60B 10-year Experiences capex plan (2024–2034) will increase capex.

Key Ratios (approximate)

  • P/E: ~21x (adj. FY2025) | EV/EBITDA: ~14x | FCF Yield: ~5%
  • Revenue Growth (FY2024): +2.8% | Adj. EPS Growth (FY2024): +32%

Growth Profile

Disney's adj. EPS rebounded sharply from the streaming investment trough: +32% in FY2024 after a flat FY2023 as streaming turned profitable. FCF recovery was dramatic — FY2025 FCF of $10.1B vs. ~$5B in FY2023. The Entertainment SVOD segment achieved its first 10%+ operating margin in Q1 FY2026 (10.6%), validating the streaming profitability thesis. Parks/Experiences continue to set records on per-capita spending and operating income.

Forward Estimates

  • FY2025/FY2026: Double-digit adj. EPS growth guided; 84% of analysts bullish
  • SVOD operating margin target: 10% for full FY2026
  • FCF: $10.1B in FY2025; trending higher with streaming maturation
  • ESPN DTC: Launched 2025; Barclays estimates 5–6M subscriber potential
  • Experiences: Record revenue trajectory; $60B 10-year capex plan; Abu Dhabi park announced
  • Analyst consensus: Strong Buy; average 12-month PT in the $115–130 range

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $DIS.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
GET /api/v1/research/DIS/fundamental$1.00 · Bearer token required
Markdown: /stocks/dis/financials/md · → thesis · → memo