Free cash flow generation remains highly volatile, evidenced by a shift from a negative 8.8% margin in 2026Q1 to a positive 19.6% margin in 2026Q2, complicating the assessment of core cash conversion efficiency.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Oct'22 | Oct'21 | Oct'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 15.79B | 18.1B | 13.97B | 9.87B | 6.01B | 5.57B | 7.62B | 6.61B | 14.29B | 12.34B | 13.21B | 10.91B | 9.78B | 9.45B | 7.97B | 6.99B | 6.58B | 5.32B | 5.45B | 5.42B | 6.06B | 4.27B | 4.64B | 2.9B | 2.29B | 3.05B | 6.43B | 5.59B | 5.12B | 7.06B | 4.63B |
| Operating CF Margin % | - | 19.17% | 15.29% | 11.1% | 7.27% | 8.26% | 11.65% | 9.49% | 24.05% | 22.39% | 23.75% | 20.79% | 20.04% | 20.99% | 18.84% | 17.1% | 17.28% | 14.71% | 14.39% | 15.27% | 17.95% | 13.61% | 15.1% | 10.72% | 9.03% | 12.11% | 25.31% | 23.84% | 22.26% | 31.43% | 24.68% |
| Operating CF Growth % | -52.6% | 29.56% | 41.61% | 64.16% | 7.96% | -26.92% | 15.32% | -53.79% | 15.81% | -6.58% | 21.12% | 11.54% | 3.47% | 18.65% | 13.9% | 6.32% | 23.67% | -2.33% | 0.46% | -10.51% | 41.91% | -8.07% | 60.08% | 26.9% | -25% | -52.63% | 15.14% | 9.25% | -27.59% | 52.74% | 31.76% |
| Net Income | 11.22B | 13.43B | 5.77B | 3.39B | 3.55B | 2.54B | -2.44B | 10.91B | 13.07B | 9.37B | 9.79B | 8.85B | 8B | 6.64B | 6.17B | 5.26B | 4.31B | 3.61B | 4.43B | 4.69B | 3.37B | 2.53B | 2.35B | 1.27B | 1.24B | -158M | 920M | 1.3B | 1.85B | 1.97B | 1.21B |
| Depreciation & Amortization | 5.45B | 5.33B | 4.99B | 5.37B | 5.16B | 5.11B | 5.34B | 4.16B | 3.01B | 2.78B | 2.53B | 2.35B | 2.29B | 2.19B | 1.99B | 1.84B | 1.71B | 1.63B | 1.58B | 1.49B | 1.44B | 1.34B | 1.21B | 1.08B | 1.04B | 1.75B | 4.66B | 3.78B | 3.75B | 4.96B | 3.94B |
| Stock-Based Compensation | 1.45B | 1.36B | 1.37B | 1.14B | 977M | 600M | 525M | 711M | 393M | 364M | 393M | 410M | 408M | 402M | 408M | 423M | 522M | 457M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -1.91B | -2.74B | -821M | -1.35B | 200M | -1.24B | -392M | 117M | -1.57B | 334M | 1.21B | -102M | 517M | 92M | 472M | 127M | 133M | 323M | -128M | -260M | -136M | -262M | -98M | 441M | -74M | 58M | 231M | -20M | 0 | 292M | -78M |
| Other Non-Cash Items | 1.29B | 1.15B | 4.28B | 1.13B | -4.37B | -3.63B | 5.23B | -3.11B | 758M | 682M | 292M | 188M | -201M | 76M | 17M | 484M | 163M | -170M | 114M | 534M | 1.24B | 1.01B | 734M | -148M | 109M | 1.49B | -220M | 57M | -75M | -150M | 22M |
| Working Capital Changes | -2.69B | -430M | -1.61B | 177M | 488M | 2.19B | -645M | -6.19B | -1.36B | -1.19B | -1B | -793M | -1.24B | 54M | -1.09B | -1.14B | -266M | -531M | -549M | -36M | 84M | -355M | -51M | 264M | -27M | -100M | 839M | 472M | -414M | -2M | -777M |
| Change in Receivables | -1.08B | -283M | -565M | 358M | 605M | -357M | 1.94B | 445M | -2.17B | -1.02B | -631M | -1.1B | -1.59B | -453M | -108M | -518M | -686M | 468M | -594M | -355M | -85M | -157M | -115M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -110M | -114M | -42M | -183M | -420M | 252M | 14M | -223M | -17M | -5M | 186M | 1M | -81M | 51M | 18M | -199M | -127M | -117M | -329M | 52M | -63M | 22M | -40M | -6M | -35M | 54M | 65M | 103M | -46M | -6M | -95M |
| Change in Payables | 754M | 237M | 156M | -1.14B | 964M | 2.41B | -2.29B | 191M | 235M | -368M | 40M | -49M | 536M | 367M | -608M | -367M | 649M | -325M | 488M | 77M | 304M | -257M | 237M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -9.04B | -8.04B | -6.88B | -4.64B | -5.01B | -3.16B | -3.64B | -4.12B | -5.34B | -4.11B | -5.76B | -4.25B | -3.35B | -4.68B | -4.76B | -3.29B | -4.52B | -1.75B | -2.16B | -621M | -227M | -1.69B | -1.48B | -1.03B | -3.18B | -2.02B | -3.77B | -5.31B | -5.67B | -5.9B | -13.46B |
| Capital Expenditures | -8.68B | -8.02B | -5.41B | -4.97B | -4.94B | -3.58B | -4.02B | -4.88B | -4.46B | -3.62B | -4.77B | -4.26B | -3.31B | -2.8B | -3.78B | -3.56B | -2.11B | -1.75B | -1.59B | -1.57B | -1.3B | -1.82B | -1.43B | -1.05B | -1.09B | -1.79B | -2.1B | -2.45B | -2.53B | -1.92B | -1.75B |
| CapEx % of Revenue | 8.93% | 8.5% | 5.92% | 5.59% | 5.98% | 5.31% | 6.15% | 7% | 7.51% | 6.57% | 8.58% | 8.13% | 6.78% | 6.21% | 8.95% | 8.7% | 5.54% | 4.85% | 4.19% | 4.41% | 3.85% | 5.81% | 4.64% | 3.88% | 4.29% | 7.13% | 8.28% | 10.47% | 11% | 8.55% | 9.31% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -9.9B | -1.58B | -417M | -805M | 166M | -7M | -2.05B | -1.09B | 380M | -2.49B | 9M | -660M | -588M | 0 | -9M | -48M | -130M | -2.85B | -480M | -34M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 183M | 75M | -68M | -130M | -117M | 78M | 385M | 10.66B | 710M | -71M | -180M | -146M | -27M | 166M | 113M | -107M | 80M | -57M | 0 | -2M | -82M | 141M | 44M | 119M | 163M | 113M | -1.76B | -3.02B | -3.36B | -3.95B | -12.11B |
| Cash from Financing | -6.97B | -10.37B | -15.29B | -2.72B | -4.74B | -4.38B | 8.48B | -1.09B | -8.84B | -8.96B | -6.99B | -5.51B | -6.71B | -4.21B | -2.98B | -3.23B | -2.75B | -3.15B | -3.95B | -3.54B | -5.14B | -2.9B | -2.7B | -1.52B | 1.51B | -1.26B | -2.24B | 9M | 360M | -1.12B | 8.04B |
| Debt Issued (Net) | 4.01B | -3.62B | -1.4B | -1.78B | -4.02B | -3.7B | 11.23B | 3.68B | -2.58B | 3.7B | 2.94B | 2.71B | 633M | 379M | 424M | 1.65B | -181M | -1.85B | 528M | 2.7B | 941M | -699M | -2.2B | -1.15B | 1.89B | 77M | -2.12B | -176M | 618M | -1.64B | 8.69B |
| Equity Issued (Net) | -7.21B | -3.5B | -2.99B | 52M | 127M | 435M | 0 | 0 | -3.37B | -9.37B | -7.24B | -6.09B | -6.53B | -3.5B | -2.01B | -3.87B | -2.67B | -138M | -4.45B | -5.68B | -5.64B | -2.03B | -134M | 51M | 47M | -896M | 316M | 185M | 154M | -453M | -377M |
| Dividends Paid | -2.23B | -1.8B | -1.37B | 0 | 0 | 0 | -1.59B | -2.9B | -2.52B | -2.44B | -2.31B | -3.06B | -1.51B | -1.32B | -1.08B | -756M | -653M | -648M | -664M | -637M | -519M | -490M | -430M | -429M | -428M | -438M | -434M | 0 | -412M | -342M | -271M |
| Share Repurchases | -7.21B | -3.5B | -2.99B | 0 | 0 | 0 | 0 | -318M | -3.58B | -9.37B | -7.5B | -6.09B | -6.53B | -4.09B | -3.02B | -4.99B | -2.67B | -138M | -4.45B | -6.92B | -6.9B | -2.42B | -335M | 0 | 0 | -1.07B | -166M | -19M | -30M | -633M | -462M |
| Other Financing | -1.54B | -1.44B | -9.53B | -993M | -851M | -1.12B | -1.17B | -2.19B | -378M | -849M | -378M | 939M | 692M | 231M | -326M | -259M | 753M | -510M | 636M | 78M | 74M | 318M | 66M | 0 | 0 | 0 | 0 | 0 | 0 | 1.31B | 0 |
| Net Change in Cash | -169M | -303M | -8.13B | 2.57B | -4.34B | -1.95B | 12.5B | 1.3B | 91M | -696M | 341M | 848M | -510M | 544M | 202M | 463M | -695M | 416M | -669M | 1.26B | 688M | -319M | 459M | 344M | 621M | -224M | 428M | 287M | 360M | -1.12B | 8.04B |
| Free Cash Flow | 7.11B | 10.08B | 8.56B | 4.9B | 1.07B | 1.99B | 3.6B | 1.73B | 9.83B | 8.72B | 8.44B | 6.64B | 6.47B | 6.66B | 4.18B | 3.44B | 4.47B | 3.57B | 3.86B | 3.85B | 4.76B | 2.45B | 3.22B | 1.85B | 1.2B | 1.25B | 4.33B | 3.13B | 2.59B | 5.14B | 2.88B |
| FCF Margin % | 7.31% | 10.67% | 9.37% | 5.51% | 1.29% | 2.95% | 5.5% | 2.49% | 16.54% | 15.82% | 15.17% | 12.66% | 13.25% | 14.78% | 9.89% | 8.4% | 11.74% | 9.86% | 10.2% | 10.86% | 14.1% | 7.8% | 10.46% | 6.84% | 4.74% | 4.98% | 17.04% | 13.38% | 11.26% | 22.88% | 15.37% |
| FCF Growth % | -34.75% | 17.74% | 74.78% | 358.95% | -46.36% | -44.69% | 107.86% | -82.4% | 12.73% | 3.32% | 27.03% | 2.71% | -2.81% | 59.16% | 21.75% | -23.12% | 25.29% | -7.62% | 0.13% | -19% | 94.56% | -23.97% | 73.7% | 54.33% | -4.23% | -71.06% | 38.12% | 21.14% | -49.67% | 78.54% | 10.19% |
| FCF per Share | 4.01 | 5.56 | 4.67 | 2.68 | 0.58 | 1.09 | 1.99 | 1.04 | 6.52 | 5.53 | 5.15 | 3.89 | 3.68 | 3.67 | 2.30 | 1.80 | 2.29 | 1.90 | 1.98 | 1.84 | 2.29 | 1.15 | 1.47 | 0.86 | 0.59 | 0.60 | 2.68 | 1.50 | 1.25 | 2.54 | 1.42 |
| FCF Conversion (FCF/Net Income) | 0.63x | 1.46x | 2.81x | 4.19x | 1.91x | 2.79x | -2.66x | 0.60x | 1.13x | 1.37x | 1.41x | 1.30x | 1.30x | 1.54x | 1.40x | 1.45x | 1.66x | 1.61x | 1.23x | 1.16x | 1.80x | 1.69x | 1.98x | 2.29x | 1.85x | -19.29x | 6.99x | 4.30x | 2.76x | 3.59x | 3.81x |
| Interest Paid | 0 | 2.05B | 2.13B | 2.11B | 1.69B | 1.89B | 1.56B | 1.14B | 631M | 466M | 395M | 314M | 310M | 316M | 718M | 377M | 393M | 485M | 555M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 1.22B | 3.96B | 1.19B | 1.1B | 1.64B | 738M | 9.26B | 2.5B | 3.8B | 4.13B | 4.4B | 3.48B | 2.53B | 2.63B | 2.34B | 2.17B | 1.61B | 2.77B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Linear television ecosystem erosion
As reported in recent financial statements, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from a massive 12.00 in 2024Q4 to a low of 0.31 in 2026Q1, indicating significant non-cash distortions in reported profitability.
The extreme variance in the OCF/NI ratio suggests that net income is a poor proxy for the company's actual cash-generating capacity due to heavy content amortization and non-operating adjustments. Investors should monitor whether these fluctuations are driven by structural changes in content accounting or temporary timing differences in working capital.
Based on the provided quarterly data, free cash flow margins have demonstrated significant instability, ranging from a negative 8.8% in 2026Q1 to a peak of 20.7% in 2025Q2, highlighting the sensitivity of cash generation to the company's aggressive content investment and capital expenditure cycles.
The inability to maintain a consistent FCF margin suggests that the company's cash flow profile is heavily influenced by the timing of major theatrical releases and seasonal park performance. This volatility complicates the assessment of long-term cash sustainability and may warrant a more cautious valuation approach.
According to recent SEC filings, the company's capital expenditure as a percentage of revenue has fluctuated between 5.5% and 11.6% over the last ten quarters, reflecting the ongoing requirement to fund both physical theme park maintenance and high-budget digital content production simultaneously.
The persistent capital intensity suggests that the company must continue to reinvest a substantial portion of its revenue just to maintain its competitive moat in both physical and digital arenas. This high hurdle for capital allocation may limit the amount of free cash flow available for shareholder returns or debt reduction.
As indicated by the quarterly cash flow data, working capital changes have been highly erratic, with a $5.1B outflow in 2026Q1 followed by a $1.4B inflow in 2026Q2, suggesting that operational cash flow is frequently disrupted by large, non-recurring shifts in accounts payable and inventory.
These sharp swings in working capital appear to be a primary driver of the company's inconsistent cash flow performance, potentially masking the underlying health of the core business segments. Analysts should investigate whether these movements are related to the timing of content production payments or seasonal inventory builds in the consumer products division.
Based on reported figures, the company has returned significant capital to shareholders through buybacks and dividends, including $3.5B in share repurchases in 2026Q2, even as free cash flow generation remains inconsistent across the observed ten-quarter period.
The decision to prioritize substantial share repurchases during periods of fluctuating cash flow suggests a management focus on supporting the stock price, which may be at odds with the need for liquidity in a volatile media environment. Investors should monitor whether this capital deployment strategy remains sustainable if the linear television decline accelerates further.
Quick answers to the most common questions about buying DIS stock.
The Walt Disney Company (DIS) generated $18.10B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
The Walt Disney Company (DIS) generated $10.08B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
The Walt Disney Company (DIS) spent $8.02B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, The Walt Disney Company (DIS) returned $1.80B to shareholders via cash dividends and spent $3.50B on share repurchases. This shows the company's commitment to returning capital to its equity investors.