Fool - Investing News·2d ago
As AI Turns Media on Its Head, the Curators WinAI is pushing the cost of making new content toward zero. The entertainment companies that help people sort through the flood stand to gain the most.
Disney's Q3 2026 results mark a profitability inflection, with gross margin expanding to 40.2% and operating margin reaching 22.0%, the highest in ten quarters, driven by a favorable mix shift toward higher-margin streaming and experiences. Revenue growth has ...
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Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue grew 6.8% YoY to $25.2B in Q3 2026, with gross margin expanding 340bps to 40.2% and operating margin reaching 22.0%, the highest in ten quarters, though EPS of $1.51 remains below the $2.92 peak inflated by a one-time gain in Q3 2025.
Disney is expected to improve its streaming profitability, with targets for significant SVOD operating income, potentially leading to a stock re-rating.
The Parks and Experiences segment is projected to grow significantly, supported by strong demand and a substantial expansion plan.
Disney has a significant share repurchase program, allocating billions annually for buybacks, enhancing per-share earnings growth.
The ongoing decline of linear television networks is a significant drag on Disney's financial performance and strategic flexibility.
Disney's substantial net debt could limit its financial flexibility and impact future growth.
Concerns about softening international park attendance and weaker traffic in U.S. parks could hinder growth.
Trailing total returns as of 10/3/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 5, 2026 | $2.06+10.8% vs $1.86 | $25.2B-0.6% vs $25.4B |
Q2 2026 May 6, 2026 | $1.57+5.4% vs $1.49 | $25.2B+1.5% vs $24.9B |
Q1 2026 Feb 2, 2026 | $1.63+3.8% vs $1.57 | $26.0B+1.1% vs $25.7B |
Q4 2025 Nov 13, 2025 | $1.11+5.7% vs $1.05 | $22.5B-1.3% vs $22.8B |
AI is pushing the cost of making new content toward zero. The entertainment companies that help people sort through the flood stand to gain the most.
Zacks Media Conglomerates industry players like DIS, MSGE, PPLI and RSVR gain from the rising demand for high-speed Internet and increased media consumption.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
A man convicted this year of planning a foiled attack on a Taylor Swift concert in Vienna in 2024 lost a privacy lawsuit against Disney on Wednesday over the fact his parents' home was shown in the docu-series "Taylor Swift: The End of an Era".
Benchmark DIS against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for The Walt Disney Company (DIS)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $102.19 | $177.45B | 14.92 | 3.35% | 13.14% | 11.27% | 0.97% | |
| $21.57 | $76.54B | 4.00 | -0.02% | 8.97% | 12% | — | |
| $30.94 | $77.57B | 106.69 | -5.15% | -8.77% | -8.91% | — | |
| $62.28 | $27.31B | 16.22 | 5.07% | 9.84% | 14.56% | — | |
| $67.06 | $279.23B | 26.51 | 15.85% | 28.22% | 47.96% | — | |
| $251.52 | $2.71T | 35.08 | 12.38% | 17.44% | 30.5% | — |
The Walt Disney Company (DIS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
The Walt Disney Company (DIS) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 5, 2026·SEC
May 6, 2026·SEC
Mar 20, 2026·SEC
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The Walt Disney Company (DIS) stock FAQ — growth, dividends, profitability & financials explained
The Walt Disney Company (DIS) reported $98.86B in revenue for fiscal year 2025. This represents a 428% increase from $18.74B in 1996.
The Walt Disney Company (DIS) grew revenue by 3.4% over the past year. Growth has been modest.
Yes, The Walt Disney Company (DIS) is profitable, generating $8.60B in net income for fiscal year 2025 (13.1% net margin).
Yes, The Walt Disney Company (DIS) pays a dividend with a yield of 0.97%. This makes it attractive for income-focused investors.
The Walt Disney Company (DIS) has a return on equity (ROE) of 11.3%. This is reasonable for most industries.
The Walt Disney Company (DIS) generated $8.29B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
