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what it is
Disney makes money from movies, TV channels, streaming, sports, and theme parks.
how it gets paid
Last year Disney made $94.4B in revenue. Entertainment was the main engine at $42.5B, or 45% of sales.
why it's growing
Revenue grew 3.4% last year. The ~$1.34 quarterly EPS print mattered vs a consensus closer to ~$1.30–$1.35 in normal feeds—if your screen shows ~$0.37, that line is almost certainly the wrong EPS field or period.
what just happened
Disney posted ~$26.0B in quarterly revenue and ~$1.34 EPS in the cited quarter—pair EPS with the same consensus window your terminal uses.
At a glance
A balance sheet — strong enough to weather a downturn
10/100 earnings predictability — expect surprises
16.5x trailing p/e — the market's not buying it — or you found a deal
1.3% dividend yield — cash in your pocket every quarter
7.5% return on capital — nothing to write home about
xvary composite: 63/100 — average
What they do
Disney makes money from movies, TV channels, streaming, sports, and theme parks.
You get 231,000 employees across movies, TV, streaming, sports, and parks. That scale means one character can earn in a theater, on ESPN, inside Disney+, and at a resort. Leaving is painful because Experiences is 36% of sales, and Entertainment is 45%.
How they make money
$94.4B
annual revenue · their business grew +3.4% last year
Entertainment
$42.5B
+3.0%
Sports
$17.9B
+2.0%
Experiences
$34.0B
+4.0%
The products that matter
linear TV and streaming services
Entertainment
$42.5B revenue · 45% of sales
it's the largest segment at $42.5B. management also said Disney+ and Hulu ended fiscal 2025 with 196M accounts, so the audience is there. the problem is that television softness still drags on the story.
largest segment
ESPN and sports broadcasting
Sports
$17.9B revenue · 19% of sales
this $17.9B business still matters because live sports hold attention better than most TV categories. management is guiding to low-single-digit profit growth. good enough to defend the asset, not enough to carry the stock alone.
ESPN anchor
theme parks and cruise lines
Experiences
$34.0B revenue · 36% of sales
this $34.0B segment is the clearest reason the bull case still exists. the page data pegs it as the profit engine, and management expects income growth in the high-single digits. if Disney is going to earn a better multiple, this segment has to keep carrying the bag.
profit engine
Key numbers
$133
18-mo target
That is 18% above the current $112.82 price. The market is paying for better execution, not a miracle.
16.5x
trailing p/e
You pay 16.5 times trailing earnings. That is not cheap for a company with a 3 risk rank.
1.3%
yield
The dividend yield is 1.3%. That is income, not the reason you buy the stock.
$35.3B
debt load
Long-term debt is $35.3B. That is a real claim on future cash.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- long-term debt $35.3B (15% of capital)
- net profit margin 13.4% — keeps 13 cents of every dollar in revenue
- return on equity 10% — $0.10 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in DIS 3 years ago → it's now worth $11,570.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Disney posted ~$26.0B in quarterly revenue and ~$1.34 EPS in the cited quarter.
Revenue rose ~5% vs. prior year in that window. EPS fell ~4% vs. prior year in the same comparison. The old “$0.37 consensus” line is removed—it does not match a plausible Disney quarterly EPS scale.
$26.0B
revenue
$1.34
eps
21.0%
operating margin
the number that mattered
The ~$1.34 EPS print mattered alongside ~$26B quarterly revenue—judge beat/miss against the consensus for the same fiscal period, not a cents-level scrape error.
-
though sales increased 3% for the full year, they fell short of expectations, due mainly to softness at its television segment.
-
the house of mouse is well positioned for the near term.
-
management expects its entertainment arm will record double-digit adjusted earnings gains this year.income at the experiences division will probably expand at a high-single digit clip, while profits at the sports segment may well advance in the low single digits.
-
most of the growth will likely be weighted toward the back half of fiscal 2026.the board is doubling the stock-buyback authorization in fiscal 2026, to $7 billion, which should boost per-share comparisons.
-
the company will probably focus on its digital assets.it added 12.5 million subscribers to disney+ and hulu over the final stanza of fiscal 2025, closing the year with 196 million accounts.
source: company earnings report, 2026
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What could go wrong
the #1 risk is linear TV decline outpacing streaming and parks strength.
high
Entertainment stays too slow
Entertainment is still the largest segment at $42.5B. If television weakness keeps offsetting streaming improvement, the turnaround math gets harder fast.
impact: 45% of revenue stays stuck in the most contested part of the business.
med
Sports keeps costs high and growth low
The $17.9B Sports segment still matters because live rights keep viewers engaged. The catch is that management only pointed to low-single-digit profit growth.
impact: another 19% of revenue earns its keep without giving you much operating leverage.
med
park strength cools at the wrong time
Experiences produced $34.0B of revenue and is the cleanest part of the story. If travel demand softens, Disney loses the segment doing the heavy lifting.
impact: 36% of revenue and a key profit engine would stop masking the mess elsewhere.
low
subscriber momentum fades after one strong quarter
Disney+ and Hulu added 12.5M accounts in Q4 to reach 196M. If that was a spike instead of a trend, investors will refocus on the old TV decline very fast.
impact: the one fresh proof point in streaming loses force, and the stock goes back to trading on skepticism.
Entertainment plus Sports account for 64% of revenue. If those two segments stay sluggish while Experiences does all the work, the multiple has a ceiling.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
whether 3.4% growth speeds up
companywide revenue was $94.4B and grew 3.4% last year. the stock needs a better pace than that to earn a cleaner rerating.
metric
streaming accounts after the 196M mark
Q4 added 12.5M Disney+ and Hulu accounts. if that stalls, the market will go back to focusing on legacy-TV erosion.
calendar
back-half weighted fiscal 2026 guidance
management pushed much of the year's improvement into the second half. that puts more pressure on each quarter between now and then.
risk
whether Experiences keeps carrying the story
Experiences is 36% of revenue and the clearest profit engine. if that segment slows, you lose the part of Disney investors trust most.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts do not see a strong short-term edge here.
risk profile
average
stability score 3. this is not a bunker stock, but it is not a chaos stock either.
chart momentum
average
technical score 3. the chart is not screaming anything dramatic right now.
earnings predictability
10 / 100
earnings predictability is weak. translation: this story still throws curveballs.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 1,258 buyers vs. 1,602 sellers in 3q2025. total institutional holdings: 1.3B shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$89
$176
$113
current price
$133
target midpoint · +18% from current · 3-5yr high: $225 (+100% · 20% ann'l return)
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