Disney rozšiřuje kapacity parků a plaveb v rámci desetiletého plánu za 60 mld. USD; ve fiskálním 3. čtvrtletí 2026 výnosy segmentu Experiences vzrostly o 10 % a provozní zisk o 20 %.
Key Takeaways Disney is expanding parks and cruise capacity under its $60B, 10-year Experiences investment plan.Fiscal Q3 Experiences revenues rose 10% and operating income 20%, with U.S. attendance up 3%.Weak Asia attendance and about $9B in fiscal 2026 capex make execution and ROIC key investor watchpoints. The Walt Disney Company (DIS - Free Report) is expanding its parks pipeline to add capacity, strengthen guest spending and create a longer runway for Experiences growth. Disney is several years into its $60 billion, 10-year investment plan for Parks, Experiences and Products, with spending focused on theme park and resort expansion, new attractions and cruise capacity. The strategy is already showing results, as Experiences revenues increased 10% year over year in the fiscal third quarter of 2026, while operating income jumped 20%. The pipeline includes major attractions at Disney's U.S. parks, including Villains Land in Orlando and the Avengers Campus expansion in Anaheim, along with additional cruise capacity.
The expansion offers multiple avenues for growth. Domestic attendance increased 3% in the quarter, while per-capita guest spending rose 4%, showing Disney can benefit from both higher visitation and greater spending per visitor. New attractions and lands can also generate additional revenues from admissions, resorts, food and beverages, merchandise and other guest spending. Cruise expansion adds another capacity-driven growth opportunity within Experiences. Importantly, management expects attractive returns from the investment program, making execution and ROIC key measures for investors.
However, international attendance remains a key risk, particularly in Shanghai and Hong Kong, where weaker consumer conditions are weighing on demand. Large capital requirements are another concern, as the company expects fiscal 2026 capital expenditures of approximately $9 billion, primarily reflecting higher Experiences spending on parks, resorts and new attractions.
Overall, ongoing park expansion projects could accelerate Disney's long-term growth, provided the new capacity ensures a sufficient influx of visitors and spending to generate attractive returns on invested capital.
Competitors Challenging DIS in Theme ParksDisney is facing competition as major U.S. operators expand their attractive facilities, invest in new experiences, and strive to build closer engagement with visitors.
Comcast (CMCSA - Free Report) is strengthening its position in the theme park market through Universal’s expanding parks portfolio. Epic Universe continues to perform well, while Universal Kids Resort is open in Frisco and its U.K. park is moving toward construction. Comcast is pursuing long-term parks growth through attractive brands, locations and continued investment in attractions and experiences.
Six Flags Entertainment (FUN - Free Report) is expanding its theme park offering through a growing pipeline of attractions and experiences. Its 2026 lineup includes multiple new attractions, while construction is underway on several 2027 projects. Six Flags is also broadening membership and cross-park visitation, aiming to increase guest engagement, repeat visits and long-term returns from its park investments.
DIS’s Price Performance, Valuation & EstimatesDisney shares have declined 7.5% year to date compared with a 9.7% drop in the Zacks Consumer Discretionary sector.
DIS’s YTD Price Performance
Image Source: Zacks Investment Research
Disney trades at a forward 12-month P/S ratio of 1.72 compared to the Media Conglomerates industry's multiple of 1.24. DIS carries a Value Score of B.
DIS’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DIS’ 2026 revenues is pegged at $101.38 billion, indicating 7.36% year-over-year growth. The consensus mark for earnings is pegged at $6.91 per share, indicating an upward revision over the past 30 days and indicating 16.53% year-over-year growth.
Image Source: Zacks Investment Research
DIS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The U.S. Federal Communications Commission on Thursday asked a federal judge to toss out Disney's (DIS.N) lawsuit seeking to block the agency's early review of licenses for the entertainment giant’s eight company-owned ABC stations.
The FCC said if Disney were successful, it would prevent the commission from analyzing evidence in its ongoing investigation and hobble the agency's "efforts to investigate and resolve serious allegations that Disney has engaged in unlawful discrimination."
The case is a test of free speech rights for broadcasters. President Donald Trump has called repeatedly for ABC to lose its licenses over programming he dislikes.
FCC Chair Brendan Carr ordered the early reviews in April, even though the stations' license renewals were not scheduled to be considered before October 2028. The FCC had not ordered an early review in more than 50 years before April. Carr has said he has not made a decision on whether to refer Disney's licenses for a hearing.
The reviews were ordered a day after Trump urged ABC to fire late-night host Jimmy Kimmel.
U.S. District Judge Loren AliKhan in Washington has set an October 5 hearing on the lawsuit. The FCC has agreed to provide at least 48 hours' notice before issuing an order to refer Disney's ABC licenses for a hearing.
Trump has repeatedly urged broadcasters to drop comedy or news programs he dislikes or which have joked about or criticized him or his administration. He has also called on the FCC to strip stations of licenses.
On Sunday, Trump called for the FCC to rebuke or punish Comcast-owned (CMCSA.O) NBC's White House correspondent Kristen Welker after she noted that the Republican president's success in endorsing political candidates has been mixed. Carr has not ruled out subjecting Comcast's NBC licenses to an early review.
Broadcast stations need FCC licenses to use public airwaves. While license revocations are extremely rare, critics say the threat of losing a license can pressure broadcasters and raise concerns about government interference in editorial and programming decisions. Networks have broad First Amendment protections over programming choices.
Disney said in its suit the FCC was seeking to coerce and retaliate against "a network that refuses to bow to the administration's demands," calling the agency's actions an "extraordinary assault on free speech."
Disney spustí později v roce 2027 program nákupu akcií pro zaměstnance a příští rok změní většinu zdravotních plánů. Současné krytí se nebude automaticky prodlužovat a většina zaměstnanců se bude muset znovu zapsat.
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Disney CEO Josh D'Amaro's company has unveiled a new employee stock purchase program. Kevin Dietsch/Getty Images; Illustration by Cheng Xin/Getty Images Disney is shaking up its employee benefits by launching a stock purchase program and switching up its health insurance plans.
Eric Chaisson, Disney's EVP of total rewards and employee services, told US-based employees about the changes in a Wednesday memo.
"We're planning to introduce an Employee Stock Purchase Plan later in 2027, pending approvals, giving eligible employees the opportunity to build company ownership by purchasing Disney stock," Chaisson said in an email, which was viewed by Business Insider.
Details of the stock purchase plan "are still being finalized," Chaisson said, including who's eligible and how the program will be designed.
The new stock program could be a way for Disney to encourage retention and boost morale after multiple rounds of layoffs this year. It could also help Disney staffers make more money without the company giving raises. However, Disney employees won't strike it rich if the stock continues to underperform the market.
Why Disney is more expensive than ever
CEO Josh D'Amaro's company had a major round of cuts in April and reduced stock-based compensation for some tech staffers shortly after. Disney's ESPN let go of additional staffers in July, and some staffers in other parts of the company, including Pixar, were also affected.
Two software engineers previously told Business Insider that their long-term incentive awards, which are restricted stock units vesting every six months for three years, were cut from 35% of their base salary to 25%.
Disney is also changing "most medical plans" next year, Chaisson said, which will affect employee contributions. However, Disney isn't switching health insurers, a person familiar with the updates said.
"Unlike in past years, your current coverage will not automatically roll over: nearly all employees will need to actively choose their plans and re-enroll any dependents for 2027," Chaisson said. He added that Disney is "encouraging everyone to take a fresh look at their options and choose what works best for them and their families."
When asked for comment, Disney spokesperson said: "Like a growing number of large employers, we're making measured adjustments to our employee benefits in response to rising healthcare costs nationwide."
The spokesperson said Disney would share more details about these changes with staffers in the coming months and said the company is "committed to providing our employees with a comprehensive package of high-quality coverage and other benefits that support their total health and well-being."
Businesses across the US are grappling with surging healthcare costs. Employers' healthcare expenses are expected to rise 9.5% next year, insurance brokerage giant Aon said on Thursday.
Disney is also "evolving" well-being programs and consolidating some "to create a more consistent and streamlined experience," Chaisson said. He added that the company is doubling the number of counseling sessions available in its Employee Assistance Program.
Disney at a discountDisney's stock purchase plan announcement comes amid a yearslong share slump. Shares are up over 15% from their late-July low but are down 8% in the past year and 38% in the last five years.
Stock purchase programs let employees buy their firm's shares at a discount, usually about 15% below the market rate, said Josh Bersin, who runs the HR consulting firm The Josh Bersin Company.
That contrasts with stock-based compensation programs, which give eligible employees shares at no charge. Employees must stay at the company for a certain amount of time to collect their shares.
Stock-based compensation can be a highly effective retention tool, especially for staffers at hot companies like OpenAI or Anthropic, Bersin said. But when a stock doesn't move much, like in Disney's case, employees with unvested shares might be less reluctant to leave.
Letting employees buy shares at a discount can be "a better way of managing benefits when the stock is not going up a lot," Bersin said, since they'll profit unless shares tank more than the employee discount.
"They end up with employees who are more committed and feel like owners," Bersin said.
Bill Castellano, a professor of human resource management at Rutgers University, said that an employee stock purchase plan is "much broader based" than stock-based compensation, which is usually reserved for managers or high-ranking staffers.
This new program could be a way for Disney to extend an olive branch to employees and boost morale, given that its April move to cut stock-based compensation "can send a pretty negative signal," Castellano said.
One Disney software engineer said they were "totally stoked" to join the stock purchase program.
Another software engineer was less enthused, saying their level of interest would depend on the program's terms.
Shares acquired through these programs would be taxed at the same rate as ordinary income unless they were held for more than a year.
"The tax complexity is such that it would be beneficial to someone who holds and feels the company is a long-term prospect for growth," the second software engineer said. "It doesn't seem like an easy win."
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ABC a Disney žalují Trumpovu administrativu a FCC kvůli údajným odvetným krokům a snaze potrestat stanici za její zpravodajství. Žádají soud, aby zablokoval případné odebrání vysílacích licencí.
ToplineABC filed a lawsuit Tuesday morning against the Trump administration and its Federal Communications Commission for allegedly violating the network’s free speech and waging a “retaliatory campaign” against it, after FCC head Brendan Carr and President Donald Trump have repeatedly railed against the network and threatened its broadcast licenses.
The ABC west headquarters is seen on May 3 in Burbank, Calif.
Los Angeles Times via Getty Images
Key FactsABC and parent company Disney filed a lawsuit against the FCC and its commissioners in federal court in Washington, D.C., which alleges the Trump administration is trying to “punish Plaintiffs for their editorial judgments and coverage of the current administration.”
Carr has threatened the FCC could suspend broadcast licenses for ABC affiliates across the country—something that Trump has long pushed for—and ABC wants the court to block the FCC from doing so and rule that the move is a retaliatory attack against the network.
The White House has particularly taken issue with ABC’s “Jimmy Kimmel Live” and “The View” and their criticism of the president, with Trump also slamming the network and NBC for not airing his July 16 speech and saying it should warrant “a revocation of their licenses.”
Carr has publicly threatened he could revoke ABC and other networks’ broadcast licenses as Trump has demanded, telling the FT in May about the possibility the FCC could pull ABC affiliates off the air: “If you didn’t take us seriously, now you should.”
The Trump administration “has steadily increased the pressure on ABC,” the network argues in its lawsuit, alleging the government is reviewing the affiliates’ broadcast licenses years ahead of schedule, which suggests the true purpose of the review is “coercing and retaliating against a network that refuses to bow to the Administration’s demands.”
The White House and FCC have not yet responded to requests for comment.
Crucial Quote“Acting through the Federal Communications Commission, the Administration has waged a retaliatory campaign against ABC for a single reason: it disapproves of what ABC broadcasts,” the lawsuit alleges. It goes on to allege if the administration accomplishes its goal of revoking ABC’s broadcast licenses, “the message to every media company in the country will be unmistakable: tell only the stories the Administration deems favorable, or face the coercive machinery of the federal government. In such a world, the press could in no way be described as free.”
What to Watch forABC’s lawsuit notes the FCC could start the formal process to adjudicate the network’s broadcast licenses “any day now,” after previously asking for formal public comment on the issue. The network argued Tuesday that if it decides to review the licenses, it’s likely that “the only outcomes on the table are adverse to Plaintiffs”—whether that’s pulling networks off the air entirely, or “intentionally prolong[ing] the adjudicative process, miring ABC in years of costly litigation.” The lawsuit asks for the court to hold a “speedy hearing” and block the FCC from moving forward with license renewal proceedings while the litigation proceeds.
Surprising FactABC notes in its lawsuit that even Republican lawmakers allied with Trump have publicly opposed the Trump administration’s public threats against the network. Sen. Ted Cruz, R-Texas, has said the FCC is acting like a “mafioso” by threatening ABC’s licenses, while Sen. John Kennedy, R-La., said at a hearing earlier this month, “Sometimes the FCC scares me right now.” The GOP senator added, “I don’t like some of the stuff that is said on television, but what business is it of the FCC?”
FCC’s Actions Against ABC, ExplainedPrior to Tuesday’s lawsuit, ABC alleges the FCC has taken several steps to carry out its alleged “retaliatory campaign,” including reviving a lawsuit against an ABC affiliate that had previously been dropped. Carr notified ABC in March 2025 he had requested an investigation into whether ABC and Disney had violated “FCC equal employment opportunity regulations by promoting invidious forms of DEI discrimination,” citing the company’s diversity efforts, and has repeatedly issued “voluminous requests” for information that are allegedly “unheard of in modern FCC practice.” The agency is separately investigating “The View” for allegedly violating requirements for networks to give equal time to competing political candidates, despite ABC arguing the program has long qualified for an exemption for “bona fide news interview” programs under that rule. That has resulted in ABC deciding not to bring on any political candidates in recent months, it alleged, for fear of the consequences that could arise. In April, the FCC then demanded ABC file early renewal applications for its affiliates, despite their renewal windows still being years away, and gave it only 30 days to prepare the applications, rather than the months the network is typically afforded. That request violates federal law and FCC regulations, ABC alleges.
What Have Trump And Brendan Carr Said About ABC?Trump has long railed against networks that are critical to him and suggested their licenses should be taken away, saying at a 2020 campaign rally, “I keep saying if they’re reporting fake news, how come they can keep getting a license?” The president continued to attack ABC and other networks in the run-up to the 2024 election, particularly attacking ABC for its questions and fact-checking during a presidential debate and suggesting without evidence that it sent questions ahead of time to former Vice President Kamala Harris. If the network “did give the questions to Kamala, ABC’s license should be TERMINATED,” Trump wrote on Truth Social. His attacks have continued into his second term, with Trump repeatedly railing against ABC on Truth Social. After ABC News Chief Correspondent Mary Bruce asked him about releasing the Epstein files in a November 2025 interview, Trump also decried Bruce as a “terrible person” and said, “I think the license should be taken away from ABC because your news is so fake. As FCC commissioner, Carr has repeatedly echoed Trump’s rhetoric about potentially pulling networks’ licenses, and particularly took aim at ABC after late night host Jimmy Kimmel made comments about the death of Charlie Kirk, which resulted in the network briefly taking Kimmel’s show off the air. “We can do this the easy way or the hard way. These companies can find ways to take action on Kimmel, or there is going to be additional work for the FCC ahead,” Carr said on a podcast before Kimmel’s show was temporarily suspended.
Key BackgroundABC’s lawsuit against the FCC comes after the network previously reached a controversial settlement with Trump, paying $15 million towards Trump’s presidential library. The president sued the network for comments George Stephanopoulos made that inaccurately suggested Trump had been found liable for raping writer E. Jean Carroll. (He was found liable for defamation and sexual abuse, but not rape.) Trump has long railed against the media and so-called “fake news,” and has launched a series of legal challenges against media outlets in recent months, including against the BBC, CNN, CBS and New York Times. ABC is the first network that has been squarely targeted by the FCC, however, despite Trump also attacking coverage against him on other networks.
Further ReadingTrump Threatens ABC, NBC Broadcast Licenses Over Not Airing His Speech Live (Forbes)
FCC Launches Review Of 8 ABC Stations’ Licenses After Kimmel’s Melania Trump Joke (Forbes)
ABC Accuses Government Of Alleged First Amendment Violations For Political Coverage (Forbes)
Disney plánuje během deseti let investovat 60 miliard USD do parků a zaměřuje se na fanoušky. Současně vrací do atrakcí oblíbené prvky, jako je yeti z Expedition Everest, Figment a Tomorrowland.
It's not everyday that a live crowd goes wild for an animatronic yeti.
But the audience at Disney's D23 Expo isn't just any old crowd, and its superfans are central to Disney's strategic parks investments — some $60 billion planned over a decade.
"We are bringing the yeti back to life," Thomas Mazloum, chairman of Disney Experiences, announced to 12,000 Disney parks fans Saturday night during the division's D23 showcase in Anaheim, California.
The repair he was referencing is within the Expedition Everest attraction at Walt Disney World's Animal Kingdom theme park. Since 2006, the ride's yeti has been stationary. At the time the figure was unveiled it was the largest and most complex audio-animatronic that Walt Disney Imagineering had ever built. But after only a few months, it broke.
Its location within the finished ride made it difficult to fix, so Imagineers placed the machine in "B-mode," in which a strobe-light effect was used to give the illusion of movement. The broken animatronic has since become affectionately known as "Disco Yeti." Now, it's getting a second life.
Mazloum, who became parks chief after Josh D'Amaro was appointed as Disney CEO, announced the yeti repair — as well as the return of fan-favorite characters Dreamfinder and Figment to EPCOT in Florida and an overhaul of Tomorrowland in California — to some of Disney's most ardent fans on Saturday.
It's a signal of where the company plans to put its focus for the blockbuster Disney Experiences unit, made up of theme parks, cruise lines and consumer goods sales. As Disney expands its reach, it will need to lean on its most loyal attendees and biggest spenders to counter macroeconomic uncertainties and challenging travel trends.
"It may not sound like a big thing, but something like the Yeti or Figment or really being serious about Tomorrowland, they mean a lot to people because they grew up with these stories," Mazloum told CNBC.
"They're small, they're immediate, but they're meaningful," he added.
A balancing actFor Mazloum, the focus of his tenure as head of Disney's experiences division will be about balancing the company's massive expansion plans — new lands and area overhauls based on popular intellectual property — meant to attract the less frequent out-of-state and international visitors with more targeted updates and upgrades that annual passholders and more regular attendees want to see.
"Our job is to listen carefully and then find the way to harmonize the different needs and wants," he said.
"The simplest way to frame it is: I'm really focused on making sure we put our fans and the consumer and the guests into the center of our decision-making," he added.
Mazloum said these efforts are already paying off, touting the company's recent fiscal third-quarter earnings report in which the experiences division posted nearly $10 billion in revenue, a 10% jump from the same quarter a year prior and a quarterly record.
"I believe the results are at the end of doing something right at the beginning, and that is really putting the fans in the center of our attention," he said. "That's why, despite some, you know, other companies reporting different results, we're doing extremely well in Florida. We're doing very well here in California, because we've listened carefully and we've really responded to the right consumer at the right time."
Last month, rival Comcast reported lags in theme park attendance, particularly in Orlando, Florida. And yet, at Disney, domestic park attendance was up 3% and guest spending rose 4%.
The company attributed strong attendance to its Cool Kids Summer promotion, which features kid-focused character meet-and-greets, dance parties and air-conditioned hangout spots as well as free water park admission for hotel guests.
Disney also recently refreshed and reimagined park attractions like Buzz Lightyear's Space Ranger Spin, Big Thunder Mountain Railroad and the Muppets-themed Rock 'n' Roller Coaster.
Driving attendance with IPNext up is the refurbishment of the Carousel of Progress, which is expected to be completed in late spring 2027, and the opening of the Monsters, Inc.-themed Monstropolis land, also set for 2027.
In the meantime, Disney continues working on its Avengers Campus expansion, its new Villains Land, the retheming of Frontierland featuring the Cars franchise as well as the new Tropical Americas land, among other long-term projects.
Disney's portfolio of IP has been the bedrock of its theme parks since the very first location opened its doors, and that library of content has only grown in recent decades. The company has a vast well of stories and characters to tap into in order to entice parkgoers.
While these new lands and rethemed attractions are designed for all future Disney parkgoers, these additions predominantly act as a beacon to those that don't travel as often to the company's resorts and parks. They offer a fresh reason for out-of-state and international guests to book a trip.
"The percentage of people that go to Shanghai Disneyland just to go to Zootopia Land is very, very high," then-CEO Bob Iger said during the company's fiscal first-quarter earnings report in February.
Rewarding loyal parkgoersEqually important are the guests that frequent Disney's parks more often. These attendees have some of the strongest emotional attachment to the parks and more purchasing opportunities when it comes to merchandise and concessions.
These parkgoers enjoy the new marquee expansions, but it's not the only driver for their visits to the parks. Those who visit annually or several times during the year are deeply passionate about the live shows, character meet-and-greets, holiday food specials, seasonal festivals and parades and nighttime spectaculars that these parks provide.
On Saturday, Disney revealed the return of two fan-favorite nighttime spectaculars — Remember Dreams Come True, a fireworks show at Disneyland, and the original World of Color at California Adventure. The Magic Happens parade will also be making a comeback at Disneyland.
"This new set of announcements demonstrates that Disney is listening to what fans want," said Gavin Doyle, founder of MickeyVisit.com. "The reaction in the room was cheering and thunderous applause. People feel like Disney hears what they have been asking for."
Disney plánuje proměnit Disney+ v „superaplikaci“ s hrami, merchandisingem a dalšími zážitky, aby zvýšil zapojení a snížil odchod uživatelů. Změny by mohly začít už příští jaro.
Josh D’Amaro’s vision for a Disney+ super app is taking shape — but comes with clear risks
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James Faris
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Josh D'Amaro, who's been Disney's CEO since mid-March, has big ambitions for Disney+.
Ricardo Moreira/Getty Images for Disney; Illustration by Jaque Silva/NurPhoto via Getty Images
Disney CEO Josh D'Amaro's dream of building a streaming "super app" is coming into focus, but big questions remain about whether it can juice revenue and engagement.
"Disney+ will continue to evolve, bringing together games, merchandise, and other experiences, while offering increased personalization, exclusivity, and benefits for subscribers," D'Amaro told employees in a post-earnings memo last week, first reported on by Business Insider.
The supercharged Disney+ would "deepen engagement, improve the value proposition, lower churn, and — most importantly — increase lifetime fan value," D'Amaro said to staffers. The memo said these updates could come starting next spring.
Some media analysts are skeptical that fans are eager to play games or buy merch in between streaming shows and movies.
"When you have a 'super app,' you wind up with a whole lot of mediocrity," said Alan Wolk, a media industry analyst at TVREV.
Folding games and shopping into Disney+ could create a confusing and annoying experience, Wolk said.
However, if executed properly, a more comprehensive Disney+ app could drive higher revenue while growing engagement and loyalty.
Hernan Lopez, founder of the media consulting firm Owl & Co., said that upselling experiences through Disney+ would help D'Amaro's company make more money from its most passionate fans.
"The potential revenue of a single day of a theme park visit can be higher than a year's worth of a Disney+ subscription," Lopez said.
Selling tickets to parks and cruises is enticing for Disney since its Experiences business drives the bulk of its profits. However, a "meaningful uptick" in sales of park tickets or merch sounds "aspirational," said John Conca, a media analyst at research firm Third Bridge.
"Any benefits from having a 'super app' are incremental rather than transformational," Conca said.
D'Amaro needs Disney's streaming business to be transformative to help jump-start the company's stagnant stock. Disney shares are down 8% in the past 12 months, and are up 10% in the last 10 years, while the S&P 500 has more than tripled.
Building a 'showcase for the entire Disney universe'Disney has been looking for ways to jumpstart viewership on its namesake streamer. Disney+ is absorbing Hulu's content and features and added a short-form video feed earlier this year. Soon, Disney+ will add a curated feed of Disney-themed TikToks.
Disney's streamers had a 4.9% viewership share on US TVs in May, up slightly from 4.7% at the end of 2025, according to Nielsen. YouTube has grown its share from 12.7% to 13.8% in that same span, as consumers embrace free services.
Disney is "exploring a free product for consumers," D'Amaro said last week.
For Disney+ to meaningfully grow engagement, it "should be far more than a streaming service," said Paolo Pescatore, a media analyst at PP Foresight.
"Disney+ should be the masterpiece and showcase for the entire Disney universe," Pescatore said, adding that it should expand its offering from movies, TV, and sports to games, creator content, merch, and tickets to parks and cruises.
Adding e-commerce features to Disney+ can help the Mouse House better understand its fans, including what they like to interact with and buy, Pescatore said.
While a well-executed super app could help Disney make more money from its fans, Forrester analyst Mike Proulx said Disney must avoid turning its beloved streamer into "a digital shopping mall."
"Disney is chasing engagement, frequency, and ad inventory, but there's a risk to its customer experience if Disney+ becomes too cluttered," Proulx said.
Games could drive engagement, but may not be 'transformational'Interactive content like games could also help Disney+ grow revenue by keeping fans from getting bored and canceling, Lopez said.
"Services need to give people more reasons to open them regularly, rather than simply turning up when a major film or series lands," Pescatore said.
Movies and TV shows are expensive to produce, so Disney+ could use cheaper ways to keep fans engaged between seasons of "Dancing with the Stars" and after hits like "The Bear" end.
"Disney is hoping to lower churn by filling those gaps with more reasons to engage," Proulx said.
That could be an uphill battle, though. Games don't seem to be moving the needle much for Netflix, even after years of investment.
"Netflix is proof that it will take significant time before that becomes any sort of engagement driver," Conca said.
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Disney uvedl, že jeho herní byznys v posledním fiskálním roce překročil 4 miliardy USD ve spotřebitelských výdajích. Partnerství s Epic Games má propojit Fortnite, disneyovské příběhy a obsah tvůrců.
Key Takeaways Disney's games business topped $4 billion in consumer spending in the latest fiscal year.Nine Disney titles have each generated more than $1 billion at retail, spanning Marvel and other franchises.Disney's Epic Games partnership aims to unite Fortnite, Disney storytelling and creator-made content. Disney (DIS - Free Report) is sharpening its case for gaming as a genuine growth engine. Disney said its games business, largely run through licensing partners, has driven an estimated $3.5 billion in annual consumer spending over the past four years and crossed $4 billion in consumer spending in the most recent fiscal year.
The company disclosed that nine titles in its portfolio have each generated more than $1 billion at retail, spanning franchises such as Kingdom Hearts and Marvel Strike Force, with newer releases including Marvel T??kon: Fighting Souls and the upcoming Marvel's Wolverine, slated for a September launch. Lucasfilm Games contributes titles across more than 20 genres, while Disney and Pixar mobile games, including Disney Solitaire, Disney Tsum Tsum and Disney Magic Kingdoms, have together surpassed one billion installs since 2014.
Layered onto this licensing base is Disney's collaboration with Epic Games, backed by a roughly $1.5 billion investment, aimed at building an entertainment universe combining Fortnite, Disney storytelling and creator-made content. Past activations point to reach: a Simpsons-themed Fortnite event in November 2025 logged 780 million hours played across more than 80 million unique players, while an earlier Marvel-themed in-game event drew over 15 million concurrent players.
These gaming disclosures follow fiscal third-quarter 2026 results, reported Aug. 5, in which total revenues rose 7% to $25.2 billion, and adjusted earnings per share grew 28% to $2.06, both ahead of prior guidance. Streaming revenues increased 11% with a 13% operating margin, and management reiterated full-year adjusted EPS growth guidance near 12%, excluding an extra fiscal week.
Even so, gaming's direct financial contribution remains modest relative to Experiences and streaming, and much of the newly disclosed spending flows through third-party licensees rather than Disney's own books, meaning the segment's promotion to a major growth catalyst is still more aspiration than established fact.
How DIS' Gaming Push Stacks Up Against Sony and Warner BrosUnlike Disney, which largely licenses its IP to partners, Sony (SONY - Free Report) develops and publishes titles directly through PlayStation Studios, giving Sony tighter control over release timing and revenue capture. Sony's 2026–2027 slate includes God of War Laufey, Tomb Raider: Legacy of Atlantis and Ghost of Y??tei-style single-player exclusives, alongside live-service bets like Marathon. Warner Bros. Discovery (WBD - Free Report) , meanwhile, is emerging from a self-described "rebuilding" phase after cancelling Wonder Woman and shuttering Monolith Productions; Warner Bros. has narrowed its pipeline to four franchises—Hogwarts Legacy, Mortal Kombat, Game of Thrones and DC/Batman—with 2026 releases limited to Lego Batman and a Game of Thrones mobile title, while Warner Bros. has signaled its "biggest" franchise returns will land only in 2027–2028.
DIS’ Share Price Performance, Valuation & EstimatesDisney shares have lost 7.9% year to date, underperforming the broader Zacks Consumer Discretionary sector's 6.2% decline.
DIS’ YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, DIS stock is currently trading at a forward 12-month price/earnings ratio of 14.18X compared with the Zacks Media Conglomerates industry's 15.86X, and the stock carries a Value Score of B.
Disney’s Valuation
Image Source: Zacks Investment Research
Estimates for DisneyThe Zacks Consensus Estimate for Disney’s earnings for fiscal 2026 is pegged at $6.88, suggesting year-over-year growth of 16.02%.
DIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Disney zvýšila tržby o 7 % a upravený zisk o 15 %, přičemž nejlépe si vedl segment experiences. Společnost zároveň zrychluje zpětný odkup akcií na 9 miliard USD za toto fiskální rok.
Many consumer tech companies are spending billions, tens of billions, and -- in a handful of cases -- hundreds of billions on artificial intelligence (AI) this year. Disney (DIS +0.35%) isn't afraid of cutting big checks to bankroll its future, but AI isn't the top priority.
It's been two years since Disney stunned the market by committing to $60 billion in capital expenditures for its experiences business, led by its theme parks and cruise line. Sure, this will be spread out over 10 years. It's still a substantial wager on a very important segment for the House of Mouse. It's a lot of money, and with Josh D'Amaro stepping up as CEO earlier this year, this should be a very exciting week on that front.
Image source: Disney.
A wish is a dream your heart makes Former CEO Bob Iger -- who led Disney from 2005 to 2020 before returning to the helm two years later -- handed the gig to D'Amaro in March. Iger never neglected the theme parks. International expansion and updated guest experiences served Disney's empire of gated attractions well.
However, Iger came from ABC. He served all of Disney well when he made it to the corner office, but there is no denying that the studio segment was his priority. The three biggest deals he orchestrated in his tenure -- Pixar, Lucasfilm, and 21st Century Fox -- were all media businesses. For a business built on princesses, content always seemed to be king in the eyes of Iger.
Iger was CEO when Disney announced the $60 billion shopping spree. Half of it would go to improving its theme parks. Less than a third of it would go to improving the infrastructure of its experiences. The rest would go to building out its fleet of cruise ships. However, when it came time to announce details of the new experiences coming to Disney's theme parks -- two summers ago at the D23 fan expo in California -- it was D'Amaro taking center stage.
Disney stock is up just 4% since D'Amaro became CEO less than five months ago. It may not seem like much, but Disney shares rose a mere 8% in the 40 months that Iger was the Big Cheese in his second run at the top. In Iger's defense, Disney was a five-bagger in his first go-round as CEO.
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Carousel of progress D'Amaro had a strong first full quarter as CEO, as Disney announced last week. Revenue rose just 7%, but that was its strongest top-line jump in more than three years. Adjusted earnings more than doubled that clip, rising a better-than-expected 15%.
There are always plenty of moving parts when Disney is successful, but nothing is moving as well as its experiences segment these days. It accounted for 54% of Disney's segment operating profit in its latest quarter. New cruise ships are naturally helping, but even its theme park business delivered another pleasant surprise. Its global theme parks posted a 4% increase in guests, while its two domestic resorts delivered a 3% gain. Even more impressively, per capita revenue is up 4%. Unlike rival attractions operators that saw weak guest trends and relied on heavy promotional activity, Disney saw its traffic pick up and guest wallets open wider.
Outside of the well-received financial update, D'Amaro's first few months have been uneventful, aside from layoffs to streamline operations and last week's announcement to ramp up its share buyback initiatives to $9 billion in repurchases this fiscal year. If you're waiting for D'Amaro's first true signature move, you won't have to wait long.
D23 is back this weekend, and the experiences segment that D'Amaro is championing will again find him joined by Neil Patrick Harris on Saturday night to announce future plans for its theme parks and cruise ships. Between firming up the timeline of new attractions revealed two years ago and likely announcing some new projects, D'Amaro will be back in his element.
Disney stock has been cut nearly in half since peaking five years ago. It would have to double from here to establish new all-time highs. When that ultimately happens, you can be sure that D'Amaro's presentation this weekend will play a starring role.
Disney+ a Hulu uzavřely s iHeartMedia dohodu o video podcastech pro šest podcastových titulů, včetně „Hey Jonas!“. Služby tím rozšiřují nabídku v konkurenčním trhu.
Disney+ logo is seen in this illustration taken August 5, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
Aug 10 (Reuters) - Disney+ (DIS.N), opens new tab and Hulu said on Monday they had struck a video podcasting deal with iHeartMedia (IHRT.O), opens new tab for six podcast titles, starting with "Hey Jonas!," as they expand their libraries to draw more users in a competitive market.
The agreement extends Disney+ and Hulu's push into video podcasts, a format also being embraced by rivals including Netflix (NFLX.O), opens new tab and HBO Max.
Here are some details:
"Hey Jonas!," hosted by the Jonas Brothers, will premiere on Disney+ and Hulu on August 14, the companies said.
The deal will bring several celebrity-hosted rewatch and companion podcasts to the platforms, including "Pod Meets World" on Disney+ and "Desperately Devoted," "Fake Doctors, Real Friends with Zach and Donald," "StraightioLab" and "Thanks Dad with Ego Nwodim" on Hulu in the coming months.
The podcasts will begin streaming on Disney+ and Hulu in phases over the coming months.
Disney and iHeartMedia did not disclose the financial terms of the deal.
Netflix and HBO Max have also moved into video podcasts, with Netflix striking deals with Spotify (SPOT.N), opens new tab and iHeartMedia for shows including "The Bill Simmons Podcast."
Reporting by Prathik Jayaprakash in Bengaluru; Editing by Tasim Zahid
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Disney oznámil, že letos plánuje zpětné odkupy akcií alespoň za 9 miliard USD, protože považuje své akcie za podhodnocené. Ocenění je na víceletém minimu, P/E činí 16,8.
The Walt Disney Company (DIS +0.22%) is a media and entertainment powerhouse. This statement isn't really up for debate. Its various studios, franchises, characters, and storylines are key to its success.
However, the business has made for an awful investment. In the past five years, the share price has declined 41% (as of Aug. 6).
The valuation is now at a multiyear low. Meanwhile, the leadership team is raising repurchase activity. Does this setup make Disney a no-brainer value stock?
Image source: The Motley Fool.
Disney's momentum continues The company's fiscal 2026 third-quarter (ended June 27) financial results highlight once again that the experiences segment is a strong performer. Revenue here was up 10% year over year, with operating income rising 20%.
Revenue from theme park admissions was boosted by 3% higher attendance and 5% favorable per-capita ticket spending. Resorts and vacations saw a 17% bump in sales, driven by the launch of two new cruise ships in the past year.
Disney's direct-to-consumer streaming operations, most notably from Disney+ and Hulu, have also introduced a notable financial catalyst. Revenue increased 11% year over year. And the operating margin came in at 13%. The company's streaming division was burning more than $1 billion quarterly a few years ago. The transition from a cash-burning machine to a moneymaker has been impressive.
Success at the movie theater also stands out. Toy Story 5 has now eclipsed $1 billion in worldwide box office revenue.
Dialing up the share repurchases During the third quarter, Disney raked in $3.1 billion in free cash flow (FCF). This was lifted by a 32% jump in operating cash flow. The consensus view among analysts is that FCF will rise in each successive year from fiscal 2025 through fiscal 2028.
Investors should be encouraged by how executives plan to handle this windfall in the near term.
"We believe our shares are undervalued and we continued to lean into share repurchases during the quarter," the earnings press release reads. It's hard to find a clearer example showcasing how the management team feels about its stock price. This directly dictates capital allocation.
Disney now plans to spend at least $9 billion on share repurchases this fiscal year. "The reason we're doing that is largely to utilize the cash that had been set aside previously for the OpenAI deal and now from the expected proceeds from the A+E transaction, which was announced overnight," Chief Financial Officer Hugh Johnston said on the Q3 2026 earnings call.
Disney sold its 50% stake in A+E Global Media to simplify the business. This deal will bring in $1.2 billion in cash.
Nine years ago, in fiscal 2017, Disney bought back $9.4 billion worth of its stock. It has essentially ramped up the activity to that level, a vote of confidence in the company's fundamental position.
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The stock has disappointed investors I believe that Disney is a value stock right now, as does the leadership team. Its shares trade at a price-to-earnings (P/E) ratio of 16.8. This valuation has come down dramatically over the past five years. It represents a 33% discount to the overall S&P 500 index.
However, I wouldn't go so far as to call it a no-brainer opportunity. Disney's current share price is $104.68. Exactly 11 years ago, in August 2015, the stock traded at $108.55. Shares have gone nowhere, yet the underlying business has undergone significant change, with cable networks now mattering less to the financial picture.
Disney expects double-digit adjusted earnings-per-share growth in fiscal 2027, after a 12% rise this fiscal year. And analysts see a 10.6% increase in fiscal 2028.
Despite these healthy forecasted gains, supported by the success of experiences and streaming, it's difficult to believe that the market will break with tradition and assign a sustainably higher valuation multiple to Disney shares. In a best-case scenario, I think the stock can register a 10% to 15% annualized total return.
Disney ve 3. čtvrtletí zvýšila tržby o 7 % a provozní zisk o 21 %, což potvrzuje obrat v segmentu Entertainment. Management pro fiskální rok 2026 čeká růst tržeb v vysokých jednociferných procentech a nejméně 9 mld. USD na zpětné odkupy.
SummaryDisney delivered a strong Q3 with 7% revenue growth, 21% operating income expansion, and a 13% SVOD margin—confirming the turnaround in Entertainment and continued strength in Experiences.DIS's management guided to high‑single‑digit FY26 revenue growth and at least $9B in buybacks, while segment trends show accelerating Entertainment, resilient Experiences, and a temporary dip in Sports.Despite improving fundamentals and a healthier balance sheet, valuation screens as fair; my DCF places intrinsic value near the current price, leading me to maintain a neutral rating on Disney.Looking for a helping hand in the market? Members of iREIT®+HOYA Capital get exclusive ideas and guidance to navigate any climate. Learn More » Getty Images
Introduction I last wrote on Disney (DIS) just over a year ago when I rated the stock as a hold. At that time, Disney was trading at $116 and has since dropped roughly 12% while the market has moved up by
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Walt Disney (DIS +3.65%) delivered the goods on Wednesday morning. The king of the entertainment industry broadcast its fiscal third-quarter results, and investors clearly found much to like about the company’s recent performance and its future potential.
Two items that were particularly appealing were management’s stated goal of —again — increasing its share repurchase target, and its adherence to the existing double-digit growth guidance. Let’s tune in to the quarter.
Image source: Walt Disney.
The happiest investors on Earth?Disney grew its revenue by 7% year over year during the period to $25.2 billion. The company’s net income not under generally accepted accounting principles (non-GAAP, or adjusted) increased by 23% to over $3.8 billion, or $2.06 per share.
The company missed the consensus analyst revenue estimate slightly but beat on adjusted net income. Professional Disney-watchers were anticipating $25.4 billion on the top line, and only $1.86 for adjusted earnings per share (EPS).
Of its three reporting units, experiences posted the highest revenue growth rate. This came in at 10%, to a total of just under $10 billion. The company’s first-in-class theme parks benefited from the annual admission price raises that are becoming routine, and other factors such as a sustained boom in travel and tourism. The overall take for theme park admissions rose 9% to nearly $3.3 billion, while the popularity of travel helped the company’s resorts and vacations segment post a robust 17% improvement to almost $2.8 billion.
The company’s core entertainment operations did well too, with overall revenue rising 6% to $11.3 billion. The growth spot within the category was subscription and affiliate fees; these advanced by 12% to over $7.5 billion. Disney’s sports division (dominated by ESPN) placed last, with revenue growth of 4% to $4.5 billion. Finally, inter-segment eliminations shaved $565 million off the company’s total top-line figure.
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Unified strategyWhile this didn’t qualify as a blowout quarter, the across-the-board revenue growth rates demonstrate the effectiveness of the One Disney strategy, which more tightly integrates the sprawling company’s many entertainment operations. New film releases are accompanied by pushes in related merchandise and, at times, new theme park attractions. Disney is a master at this: a customer paying for a movie ticket becomes a buyer of a doll depicting the lead character, and later a Disneyland attendee eager to go on the ride linked to the film.
While investors surely would have loved a guidance raise, management’s reaffirmation of its existing forecasts presages continued growth. Its full-year 2026 earnings projections were maintained: adjusted EPS growth of either 12% or 16% over the previous year, depending on whether you count the year’s extra reporting week. The company also maintained its forecast of a double-digit percentage improvement in profitability for 2027, although it has yet to put a specific number to it.
That steady-and-she-goes stance put a spotlight on the raised goal for share repurchases. The company said it is now targeting total spend of a whopping $9 billion this fiscal year on buybacks, up from the “merely” $8 billion goal stated in the previous quarter, and the $7 billion of the quarter prior to that (also, far above the $3.5 billion spent in fiscal 2025). That huge and steadily rising figure is more than an investor-morale-boosting effort at this point; it clearly shows that management thinks the stock is undervalued.
I would agree with that take. Disney remains miles ahead of any other entertainment company, in both scale and the many sources of revenue growth at its disposal. That, bolstered by the One Disney strategy that maximizes revenue amplification, presages a bright future for the company. I continue to believe that investors seeking the single best entertainment stock for their portfolios will make the right choice with this one.
Disney vykázal ve třetím fiskálním čtvrtletí rekordní tržby divize Experiences téměř 10 miliard USD, meziročně o 10 % více. Provozní zisk stoupl o 20 % na více než 3 miliardy USD.
Disney parks are defying a slump in international travel to the U.S., posting record quarterly revenue for the company's experiences division on Wednesday.
The experiences segment, which includes Disney's theme parks, cruise line, resorts and consumer products, reported nearly $10 billion in revenue for the fiscal third quarter, a 10% jump from the same quarter a year prior and a quarterly record. The division has seen record revenue for six consecutive quarters.
The division recorded operating income of more than $3 billion, up 20% from the same period a year prior. Shares of Disney were 2% higher Wednesday.
"It's important, I think, to highlight that we're performing significantly better than our competition," Disney CEO Josh D'Amaro said during Wednesday's earnings call. "And in doing that, delivering strong volume and per [capita] spending results. And to remind everyone we're achieving this even during a period where there's a fair amount of macro uncertainty."
Last month, rival Comcast reported lags in theme park attendance, particularly in Orlando, Florida.
While tourism grew worldwide last year, the United States was the only major destination to see a drop in foreign visitors, according to the World Travel & Tourism Council. Overall, international travel to the U.S. fell 6%, the organization found.
Travel bans, visa fees and invasive searches at ports of entry are all factors in international travelers leaving the United States off their travel itineraries, according to the WTTC. Trade frictions, geopolitical unease and safety concerns have also contributed to the drop in demand for travel stateside, travel experts told CNBC.
And yet, at Disney, domestic park attendance was up 3% and guest spending rose 4%, CFO Hugh Johnston told CNBC. He also called out the "very strong attendance" at Walt Disney World in Orlando.
"Those numbers are somewhat different than what you would have seen from our competitor down there, as well as some of the reported traffic coming through Orlando [International] Airport," he added.
The company attributed strong attendance to its Cool Kids Summer promotion, which features kid-focused character meet-and-greets, dance parties and air-conditioned hangout spots as well as free water park admission for hotel guests.
Disney also recently refreshed and reimagined park attractions like Buzz Lightyear's Space Ranger Spin, Big Thunder Mountain Railroad and the Muppets-themed Rock 'n' Roller Coaster.
"Disney activated their fans to visit the theme parks during the quarter using a mix of marketing and discounting campaigns targeting young families and residents," said Gavin Doyle, founder of MickeyVisit.com. "Despite a massive slate of upcoming rides that might have encouraged guests to delay their visits, Disney has found ways to create urgency and enticing opportunities to visit the theme parks now."
These efforts "work to deepen [Disney's] connection to modern audiences," Doyle said.
On the West Coast, the California-based parks had a similar promotion at Disneyland in Anaheim.
"Disneyland's targeted discounts for California residents and kids ensured that families did not skip visiting the parks this year," Doyle said.
Disney's experiences segment also benefitted from the addition of two new ships to its cruise fleet, the Disney Destiny and the Disney Adventure. Together these cruise liners increased stateroom capacity by around 50% and helped push revenue from the resorts and vacations piece of the division up 17% to $2.77 billion for the fiscal third quarter.
Recently installed Fubo CEO Alisa Bowen whetted Wall Street appetites for the upside of being controlled by Disney, her alma mater, during the company’s quarterly earnings call on Wednesday.
“Obviously, I know that company very well, and I’m very confident that we’ll continue to strengthen those relationships as we work together on what the future opportunities for both Fubo and Hulu + Live TV are,” Bowen said.
Bowen took the helm last month, replacing David Gandler, who co-founded the company and had led it as CEO since its launch in 2015. Disney in 2025 took a 70% stake in Fubo as part of a settlement of an antitrust lawsuit brought over the never-launched Venu Sports, a joint venture backed by Disney, Fox Corp. and Warner Bros. Discovery. Fubo has remained a separately traded company, operating both FuboTV and Hulu + Live TV as separate services.
“Even today, just nine months after the close, there are some really interesting areas of opportunity that we’re very enthusiastic about,” Bowen said. Marketing partnerships, she explained will be one area to explore. The company, whose Fubo offering has a sports-centric focus, has recently been featured on the ESPN app.
“The ESPN relationship is at its very early stages and while the numbers are small, the signals are very convincing,” Bowen continued. There’s better conversion and retention from that heavily enthusiastic sports base for the Fubo products versus some of the other marketing media channels that we have and tapping into that audience that ESPN serves so well is a clear opportunity.
Disney is also working on integrating Hulu and Hulu + Live TV into the Disney+ app. Disney CEO Josh D’Amaro elaborated on that plan earlier Wednesday on Disney’s earnings call.
Fubo stock rose in early trading after the company reported revenue of $1.48 billion in the quarter, flat with the year-earlier period on a pro forma basis. Losses per share came in at 25 cents, which was better than analysts had expected, with total subscribers inching up 2% to 5.75 million.
Beyond the synergy question, Bowen and CFO John Janedis addressed the impact of the World Cup on subscriber levels as well as how they stack up with rival YouTube TV. In recent months, YouTube TV has rolled out nearly a dozen new bundles at varying price points, including a sports-focused offering.
“Our package competes with a YouTube TV sports package, obviously, but there are differences between each of these,” Bowen said. “For example, the Fox News component in our sports package is something that’s particularly valued by our subscriber base and is working well for us.”
The World Cup, whose Spanish-language broadcasts on Telemundo were made available on Fubo in a late-breaking carriage deal just prior to the tournament’s start in June, had a “favorable impact” on subscriber levels, Janedis said. On a sequential basis, 25,000 subscribers came in during the quarter, including some for the World Cup.
Bowen noted that a number of product innovations were unveiled during the lead-up to the World Cup.
More broadly, being included as part of Disney’s upfront ad sales process provided a lift, Bowen said. “We’re very bullish on our opportunity to best leverage the Disney ad sales operation,” she said.
Disney spojí Disney+ s TikTokem a začne do krátkého feedu Vert přidávat fanouškovská videa o Pixaru, Marvelu a Star Wars. Pilot poběží v USA v příštích měsících.
Disney is partnering with TikTok to bring Disney-focused fan content directly into the Disney+ app. The companies are starting with a pilot program in the U.S. in the coming months, and plan to expand to additional markets later on.
As part of the agreement, fan-made videos on TikTok about Pixar, Marvel, Star Wars, and other franchises will be featured in the “Verts” section of Disney+, the streamer’s short-form video feed that rolled out a few months ago.
Disney has been working to flesh out the amount and variety of content on the video feed. The company late last year committed to making a significant $1 billion investment in OpenAI as part of a three-year licensing deal that would let people create short videos using Disney characters on the AI lab’s video generation platform, Sora. However, those plans fell through after OpenAI suddenly decided to shut down Sora in March.
This partnership with TikTok seems like a natural progression of that, especially as many streaming platforms are competing with social platforms for users’ attention. This competition is partly why Disney launched the Verts feature in the first place, along with Netflix, HBO Max, and Prime Video.
The deal also indicates that Disney is acknowledging that the next generation of talent is on social media. The company said that, through the newly launched Disney Creator Ambassador Program, TikTok creators will gain access to the media giant’s vast library of content, as well as opportunities to earn rewards, increase visibility, access exclusive events, and career opportunities.
Other streaming services, such as Tubi and Peacock, have collaborated with TikTok creators to produce original long-form content for their platforms.
The timing of the announcement aligns with Disney’s Q3 results. The company reported its subscription video-on-demand (SVOD) operating income more than doubled to $712 million from $329 million a year earlier. Plus, in a restructuring move, Disney has decided to shift its consumer products business from the Experiences division to Studios.
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Josh D'Amaro, who became Disney's CEO in March, lauded staffers in a post-earnings memo. Jade GAO / AFP via Getty Images Disney CEO Josh D'Amaro congratulated employees after a strong quarter — and outlined his plans for Disney+ and AI.
"Our performance reflects the strength of our businesses, the enduring power of our stories and brands, and, most importantly, the extraordinary work you do every day," D'Amaro said in a memo viewed by Business Insider.
D'Amaro shared his vision for Disney+ with staffers, which involves building a "super app" that he hopes will eventually include games and merchandise.
"Beyond our films and series, Disney+ will continue to evolve, bringing together games, merchandise, and other experiences, while offering increased personalization, exclusivity, and benefits for subscribers," D'Amaro wrote in his memo.
A supercharged Disney+ would "deepen engagement, improve the value proposition, lower churn, and — most importantly — increase lifetime fan value," D'Amaro wrote. These changes are expected to start next spring, he said.
D'Amaro also talked about his AI strategy, saying Disney is "leveraging AI to bring the most innovative tools to our storytellers."
The CEO reiterated that "AI isn't simply about efficiency — it's about enhancing a creative process that will always be human-centered, artist-driven, and creator-led."
Disney is also betting on creators with a new TikTok deal that will put curated user-generated content on Disney+.
The Mouse House satisfied Wall Street by reporting revenue growth of 7% and a 28% jump in adjusted diluted earnings per share in its June quarter. Streaming operating income more than doubled to $712 million, while Experiences operating income grew 20%.
Shares rose over 2% in early trading, though the stock is still down more than 14% in the last 12 months.
Read the full memo from D'Amaro below:
Dear Fellow Employees & Cast Members,Today, we reported our Q3 results, and I want to share a few highlights that you helped make possible. Our performance reflects the strength of our businesses, the enduring power of our stories and brands, and, most importantly, the extraordinary work you do every day.During my first five months as CEO, I've been focused on ensuring that we execute as one company around a unified strategy. And what we're seeing this quarter is proof that coordinating our franchises, sharing data and technology, and building seamless fan experiences works. Disney's fundamental advantage is the depth of our fan relationships, and that translates directly to growth in our business.Today, we find ourselves in an environment where consumers have more options than ever for their time, and yet, our results show they keep choosing to spend their time with Disney. This success reflects our continued execution across three strategic priorities: First, investing in creative excellence and world-class IP. Second, leveraging technology to accelerate growth and drive returns. And third, deepening our direct relationships with fans by creating a more connected Disney experience. Anchoring these strategic priorities is our One Disney operating model, which will allow us to fully capture the value of our portfolio for both fans and shareholders.This quarter at Disney Experiences, we grew global guests 4% year-over-year, with particular strength at Walt Disney World, while also benefitting from additional capacity at Disney Cruise Line. Forward bookings at our domestic parks and cruise line remain healthy, and we are investing to sustain that growth and, over the lifetime of these projects, deliver strong growth returns. The pipeline includes major attractions at every site, including Villains Land in Orlando and the Avengers Campus expansion in Anaheim, amongst others in the U.S., and our previously announced cruise ship expansion.At our studios, the strength of our franchise IP was evident in the financial and cultural impact of Toy Story 5, which recently surpassed $1 billion at the global box office. The five Toy Story films have delivered over $4 billion in global box office and over 2 billion hours streamed on Disney+. Across all retailers, Toy Story generates more than $1 billion annually in global sales and reaches fans across every Disney park and cruise ship, including four immersive lands, 19 attractions, and two hotels. That's the Disney flywheel in action: one powerful and enduring story, told across theaters, streaming, retail, and physical experiences. That integration creates a structure no one else has been able to replicate.Of course, I'd be remiss not to acknowledge and congratulate everyone on this past weekend's record-breaking opening for Spider-Man: Brand New Day. Congratulations to Sony, Kevin Feige, and the Marvel Studios team — it's an unbelievable result, and it's one more example that audiences will turn out in force for great theatrical experiences. Sixty-five years after his debut, Spider-Man remains one of the most popular characters, through consumer products, parks, and streaming. And this weekend, it's a great reminder of just how much strength this franchise still has. And it goes without saying that the success of Spider-Man bodes well for our upcoming and highly anticipated Avengers: Doomsday film.Turning to streaming, Entertainment SVOD continued to perform well in the quarter, and we passed an important milestone in app unification, allowing Hulu standalone and bundle subscribers to link profiles and manage subscriptions on Disney+. Our long-term streaming strategy rests on two pillars: make the core streaming experience the best in the marketplace and connect our businesses into a single digital ecosystem. Beyond our films and series, Disney+ will continue to evolve, bringing together games, merchandise, and other experiences, while offering increased personalization, exclusivity, and benefits for subscribers. All of this is designed to deepen engagement, improve the value proposition, lower churn, and — most importantly — increase lifetime fan value. We expect to introduce elements of this expanded ecosystem beginning in Spring of 2027.That same strategy also extends to Sports, where ESPN gives us another powerful way to deepen our relationship with fans. This quarter, the unique passion of sports fandom drove over 100% growth in NBA Finals and NHL postseason viewership across ESPN and ABC versus the prior season, making this the most viewed fiscal Q3 on ESPN, ESPN2, and ESPN on ABC since 2016.Underpinning all of this work is our deep commitment to embracing emerging technology. Our company was founded on the convergence of creativity and breakthrough technology — and continuing that tradition is a priority for me and this leadership team. That's why we're leveraging AI to bring the most innovative tools to our storytellers. As I've said before, AI isn't simply about efficiency — it's about enhancing a creative process that will always be human-centered, artist-driven, and creator-led.To sum it all up, there is real clarity of purpose across our company. We know who we are: storytellers with an unmatched ability to reach fans across every format and geography. When we combine that strength with speed, discipline, and innovation, there is no limit to what we can achieve.Thank you for everything you are doing to move Disney forward. I am proud of what we accomplished this quarter, and even more excited about what we will build together. I look forward to seeing many of you next week in Anaheim for D23: The Ultimate Disney Fan Event, where we will unveil more of the exciting things we have in the works from across the company.Josh
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Disney vyprodala reklamní prostor pro únorový Super Bowl a dokončila i prodej upfrontů na roky 2026–2027. CFO Hugh Johnston uvedl, že celkový objem závazků je meziročně ve vyšších jednotkách procent.
Disney has sold out ad inventory for next February’s Super Bowl and also wrapped up 2026-27 upfront sales.
The news was announced by Chief Financial Officer Hugh Johnston during the company’s fiscal third-quarter earnings call on Wednesday.
The Super Bowl, which will be played at SoFi Stadium in Inglewood, CA, has been a promotional area for Disney for several months. The game will be the first ever to air on ESPN, in a simulcast with ABC. The company is in the midst of a year-long runup to the game, with the marketing blitz to culminate with an “ESPN Beach” activation on the Santa Monica pier in February.
Drawn by recent momentum for live sports and the ongoing ratings clout of the NFL, 58 brands in 34 different categories have bought time, with nine first-time advertisers. Super Bowl LXI is slated for February 14, which is not only Valentine’s Day but next year is followed by the federal Presidents Day holiday.
Johnston did not offer any guidance of pricing, though reports have said spots commanded $8 million to $9 million for 30 seconds.
RELATED: ‘Spider-Man: Brand New Day’ Triumph “Bodes Well” For ‘Avengers: Doomsday’, Disney CEO Josh D’Amaro Says
The Super Bowl crowned the company’s 2026–2027 upfront process, with execs citing total volume commitments up double digits versus last year.
While execs are “pleased” with the results of the upfront and is seeing “healthy” returns in sports, Johnston said, the streaming marketplace is a bit more challenging. “The growth of supply in the marketplace,” he said, is “creating some pricing pressure for us and for others, which you saw in our SVOD ad sales growth rate this quarter.”
In global territories, especially EMEA, the exec added, “we’re seeing real demand for Disney+ as we expand our ad tier and we optimize the sell-through in our growth markets.”
Category-wise, he added, “as is typically the case, it’s a bit of a mix. We’re seeing good momentum in healthcare and financial services and in political categories, while telecom and restaurants and CPG are displaying some softness, as you would expect with the consumer environment these days.”
In a statement, Disney ad chief Rita Ferro highlighted “can’t-miss moments” on the schedule beyond live sports, including the Oscars, the Grammys, the CMA Awards and New Year’s Rockin’ Eve.
Disney vykázala za čtvrtletí tržby 25,25 miliardy USD, meziročně o 6,8 % více, a EPS 2,06 USD. Tržby ale mírně zaostaly za odhady Wall Street o 0,91 %.
For the quarter ended June 2026, Walt Disney (DIS - Free Report) reported revenue of $25.25 billion, up 6.8% over the same period last year. EPS came in at $2.06, compared to $1.61 in the year-ago quarter.
The reported revenue represents a surprise of -0.91% over the Zacks Consensus Estimate of $25.48 billion. With the consensus EPS estimate being $1.88, the EPS surprise was +9.57%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Disney performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Parks - Attendance - Domestic Resorts: 3% versus the two-analyst average estimate of 1%.Parks - Per Capita Guest Spending - Domestic Resorts: 4% versus the two-analyst average estimate of 3%.Hotels - Occupancy - Domestic Resorts: 91% versus 85.5% estimated by two analysts on average.Hotels - Occupancy - International Resorts: 85% versus 86.5% estimated by two analysts on average.Revenue- Entertainment: $11.35 billion compared to the $11.78 billion average estimate based on four analysts. The reported number represents a change of +6% year over year.Revenue- Sports: $4.5 billion versus $4.55 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +4.5% change.Revenue- Eliminations: $-565 million versus the four-analyst average estimate of $-619.38 million. The reported number represents a year-over-year change of +26.1%.Revenue- Experiences: $9.97 billion versus the four-analyst average estimate of $9.74 billion. The reported number represents a year-over-year change of +9.7%.Revenue- Entertainment- Other: $579 million compared to the $589.37 million average estimate based on two analysts. The reported number represents a change of +1215.9% year over year.Revenue- Experiences- Theme park admissions: $3.25 billion versus the two-analyst average estimate of $3.08 billion. The reported number represents a year-over-year change of +8.6%.Revenue- Experiences- Parks & Experiences merchandise, food and beverage: $2.28 billion versus the two-analyst average estimate of $2.19 billion. The reported number represents a year-over-year change of +6.6%.Revenue- Experiences- Resorts and vacations: $2.77 billion compared to the $2.88 billion average estimate based on two analysts. The reported number represents a change of +16.6% year over year.View all Key Company Metrics for Disney here>>>
Shares of Disney have returned +0.7% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Disney's CEO, Josh D'Amaro, said the company is interested in free streaming. Jeff Kravitz/FilmMagic; Illustration by Samuel Boivin/NurPhoto via Getty Images Disney CEO Josh D'Amaro just confirmed that the company is taking a close look at moving into free streaming.
"We're exploring a free product for consumers, one that will allow us to accomplish several goals and hopefully do that efficiently," D'Amaro said on Wednesday morning during Disney's earnings call. (D'Amaro was asked about FAST channels — which are live feeds of free, ad-supported TV — but he didn't specifically mention them in his response.)
Business Insider reported in July that Disney is exploring making some Disney+ content accessible for free. Paramount+ is also looking into a "free front porch" to grow reach, as Hollywood increasingly embraces free streamers.
A free streaming offering would have three main benefits, D'Amaro said on the earnings call:
Expanding Disney's reach by better serving customers who are "more price sensitive"Growing its advertising revenue by adding more inventoryDriving "top-of-funnel" subscriber growth for Disney+Disney's streaming ad spots are "fairly well sold," D'Amaro said, adding that this isn't the case for some of its streaming competitors.
"More inventory would actually help us accelerate our ad revenue growth," D'Amaro said.
The Disney CEO said the company had "nothing specific to announce today" about a free product but that it's "definitely something that we're considering."
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Disney uvedl, že úspěch „Toy Story 5“ za čtvrtletí končící v červnu podpořil prodej zboží s motivy značky, sledovanost Disney+ i návštěvnost parků. Tržby divize Entertainment vzrostly o 6 % na 11,3 miliardy USD.
Item 1 of 4 Tom Hanks and Woody attend the "Toy Story 5" UK launch event in London, Britain, May 28, 2026. REUTERS/Jack Taylor
[1/4]Tom Hanks and Woody attend the "Toy Story 5" UK launch event in London, Britain, May 28, 2026. REUTERS/Jack Taylor Purchase Licensing Rights, opens new tab
CompaniesLOS ANGELES, Aug 5 (Reuters) - Disney (DIS.N), opens new tab said the blockbuster success of "Toy Story 5" extended beyond the box office for the June quarter, as the hit film fueled sales of merchandise, added to engagement on the Disney+ streaming service, and attracted more visitors to its theme parks.
Shares of the company jumped 4.6% in premarket trading on Wednesday.
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CEO Josh D'Amaro, who took over in March, highlighted his strategy to invest in franchises like Toy Story to reach audiences outside the box office in a lengthy earnings letter to shareholders on Wednesday.
Separately, Disney and TikTok announced a deal on Wednesday that will allow TikTok creators to use characters and scenes from Disney movies and TV shows in short-form videos, the first agreement of its kind between the social media platform and a traditional media company.
The entertainment giant reported revenue of $25.2 billion in the quarter, up 7% from last year, but shy of Wall Street's forecasts of $25.4 billion, according to analysts surveyed by LSEG.
Disney's per-share earnings rose 28% from a year ago to an adjusted $2.06, beating forecasts of $1.86 a share.
The company said it would sell its 50% stake in A+E Global Media to co-owner Hearst Corporation, and use the estimated $1.2 billion in cash proceeds to repurchase Disney shares. This will increase the value of its fiscal 2026 share repurchases to at least $9 billion.
Disney's Parks and experiences division reported revenue of nearly $10 billion, up 10% from a year ago, fueled by a 4% increase in attendance at its theme parks, globally, and a 3% increase at its domestic parks.
Analysts had expressed concern about Disney's U.S. parks, after Comcast CMCSA.O attributed softening attendance trends at its Universal theme parks in Orlando to higher fuel prices and weaker consumer sentiment.
Operating income for the experiences segment rose to $3 billion, a 20% gain from a year ago, in part reflecting a $100 million tariff refund it received earlier in the quarter. The U.S. Treasury Department has been issuing refunds after the U.S. Supreme Court struck down President Donald Trump's global tariffs as illegal.
Disney's Entertainment group reported $11.3 billion in revenue for the quarter, a gain of 6% from a year earlier, reflecting the performance of "Toy Story" and a 15% increase in subscription fees for the company's Disney+ and Hulu streaming services. Segment operating income rose 64% to nearly $1.7 billion.
Sports reported revenue of $4.5 billion in the quarter, though income from the four-game sweeps that marked the early rounds of the NBA playoff games contributed to lower-than-anticipated operating income, which fell 17% to $858 million.
Disney said it expects fourth quarter segment operating income of $4.9 billion. This guidance reflects anticipated continued healthy growth in its parks group.
However, the weak box office performance of live-action adaptation of "Moana" would impact results for the entertainment segment.
Reporting by Dawn Chmielewski in Los Angeles; Additional reporting by Harshita Mary Varghese in Bengaluru; Editing by Raju Gopalakrishnan
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Disney ve fiskálním 3. čtvrtletí zvýšil provozní zisk o 21 % na 5,6 miliardy USD a tržby o 7 % na 25,2 miliardy USD, nad odhady trhu. Zisk ze streamingu se více než zdvojnásobil na 712 milionů USD.
Disney’s Josh D’Amaro stepped out with solid numbers and some news in his first full quarter as CEO. Toy Story 5 drove studio revenue, theme parks saw an uptick in attendance, and streaming profits more than doubled for the three months ended in June.
Total operating income for Disney’s fiscal third quarter jumped 21% $5.6 billion, beating Wall Street forecasts, as did adjusted EPS (of $2.06 a share, up from $1.61).
Revenue of $25.2 billion rose 7% from the year earlier.
The fiscal Q3 numbers follow confirmation of Disney’s planned sale of its 50% interest in A+E Global Media to an affiliate of co-owner Hearst for $1.2 billion in cash. The media giant is moving its consumer products business under Studios from the lucrative division’s longtime home in Experiences. And it unveiled a global, short form content sharing partnership with TikTok this morning.
The quarterly numbers and full-year outlook “reinforce our confidence that we are uniquely well positioned,” said D’Amaro, who took the reins from Bob Iger in March. “Decades of IP investment have built deep fan connections that translate into strong financial results. Our accelerating global guests growth at Experiences, Toy Story 5‘s theatrical and consumer products success, and strong ESPN viewership gains all helped expand our consumer reach this quarter.”
He’ll be hosting a call with analysts at 8:30 am ET.
Disney’s three sprawling divisions are led by Entertainment, which posted profit of $1.7 billion, up 64%, on revenue of $11.3 billion. The company cited the June 19 theatrical release of Toy Story 5, which has surpassed $1 billion in global box office, as well as The Devil Wears Prada 2.
Disney acknowledged that Star Wars: The Mandalorian and Grogu and live action Moana (in fiscal 4Q) underperformed at the box office but noted their other contributions to the flywheel like a new Mandalorian-themed Millennium Falcon: Smuggler’s Run at Disneyland and Walt Disney World, and retail sales.
“We expect the live-action Moana to be a strong title on Disney+, building on the success of the original film … and extending the reach of the franchise, which now includes three films, a themed area at EPCOT, and a robust global merchandise business.”
Disney doesn’t furnish streaming subscriber numbers anymore but said SVOD operating income more than doubled to $712 million from $329 million on revenue of $5.5 billion, up 11%. Subscriptions fees rose 15% (9% from more subscribers, 3% from higher rates and 1% from a favorable foreign exchange impact). Advertising nosed up 3% (impressions were higher, rates lower).
Disney also sounded a bit like Netflix as it talked up an emerging international programming slate with Rivals Season 2 on Disney+ in the U.K. and Ireland, The Perfect Crown in Korea and Dear Killer Nannies in Latin America. The company plans to triple the number of Disney+ local original series over the next three years.
“Our ambition is for Disney+ to become the digital centerpiece of the Walt Disney Company,” D’Amaro’s letter said.
“We aim to evolve Disney+ into a comprehensive membership ecosystem. By integrating high-value, always-on benefits with our storytelling, we can reach more fans, deepen engagement, and increase subscriber retention. These product enhancements will also allow us to further segment the market, increasing our addressable opportunity over time. We expect to begin introducing elements of this vision in Spring 2027.”
Disney+ Q3 churn declined worldwide and Disney said it passed an important milestone in “app unification” allowing Hulu standalone and bundle subscribers to link profiles, watch history, and manage subscriptions on Disney+.
At Experiences, profit rose 20% to over $3 billion on almost $10 billion in revenue. Global guests grew 4% and attendance at domestic parks rose 3%. WDW saw healthy core attendance increases from domestic tourists and annual passholders.Forward bookings remain robust.
That should reassure investors who were spooked by softer attendance at Universal’s domestic parks when Comcast reported earnings last month.
Theme parks average per capita ticket revenue rose 5%. Disney noted continued, but moderating, headwinds from international attendance at domestic parks. It cited strong attendance growth at Disneyland Paris following the opening of World of Frozen. Overall, it anticipates a quarter of global guest growth in the current fiscal Q4 despite consumer softness in Asia.
Q3 was the first full quarter with Disney’s two newest cruise ships, the Disney Destiny and Disney Adventure.
Disney said it recorded approximately $100 million in a tariff refund for the quarter, reversing out tariff payments earlier in the fiscal year. Apple last week reported a $2.19 billion tariff refund for the June quarter.
Sports, led by juggernaut ESPN, saw profit of $853 million, down 17% on higher programming and production costs, on $4.5 billion in revenue. Disney cited contractual rate increases, costs for new sports rights and an impact from the timing of rights costs recognition as a result of the NBA contract renewal. Contributing to the lower-than-expected operating income were four-game sweeps in early rounds of the NBA playoffs and the impact of a network carriage dispute. Disney was likely referring here to the resolution terms of a fight with YouTube TV in late 2025.
After unlocking a selection of ESPN content on Disney+ domestically in 2024 and expanding it globally since then, the letter said, the company plans to deliver a more robust subset of games for Disney+ subscribers beginning this fall anchored by additional college football simulcasts. The service will also continue simulcasting college football pregame show College GameDay.
Here are the earnings estimates, what analysts are saying ahead of the report and the key items to watch.
• Walt Disney stock is showing downward pressure. What’s next for DIS stock?
Disney Q3 Earnings EstimatesAnalysts expect Disney to report third-quarter revenue of $25.40 billion, up from $23.65 billion in last year’s third quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in two straight quarters and in six of the past 10 quarters overall.
Analysts expect Disney to report quarterly earnings per share of $1.86, up from $1.61 in the past year’s third quarter.
The company has beaten analyst estimates for earnings per share in 12 straight quarters.
Disney Analyst Ratings and Price TargetsWhile some may see the streaming segment as a strength for Disney, Wells Fargo analyst Steven Cahall recently wrote that exiting the streaming business could boost Disney’s share price by 40%.
The analyst maintained an Overweight rating on the stock and lowered the price target from $146 to $125.
Cahall said the move would allow Disney to refocus on licensing and content creation, two of its key strengths.
"We lay out the case for DIS to return to its old biz model of producing versus distributing," Cahall said.
The analyst said Disney could earn around $4 billion annually from global licensing rights alone, along with $15 billion or more for the company’s content library. The items together would be a better cash generator than Disney’s direct-to-consumer business, the analyst said.
Here are other recent analyst ratings on Disney stock and their price targets:
Citigroup: Maintained Buy rating, lowered price target from $145 to $135 UBS: Maintained Buy rating, lowered price target from $138 to $133 Barclays: Maintained Overweight rating, lowered price target from $135 to $110 Benchmark: Initiated with Buy rating, price target $115 Key Items to WatchInvestors and analysts have priced Disney stock for more negativity ahead with lower price targets and the stock nearing a 15-month low.
"Star Wars: The Mandalorian and Grogu" didn’t fare as well, with $177.7 million domestically and $345.1 million globally. This ranks among the lowest totals in Star Wars history. The film still ranks as the 10th highest domestic-grossing film.
Also ranking in eighth place is "The Devil Wears Prada 2" with $220.6 million domestically.
Those three films were all released in May and June and will go up against a 2025 period that had "Lilo & Stitch," which grossed $423.8 million domestically and over $1 billion worldwide.
The three films should come in higher than last year’s comparable period and could provide some upside depending on the cost of "Star Wars: The Mandalorian and Grogu.”
Disney could also get investors excited with commentary on the record-breaking "Spider-Man: Brand New Day." The film comes from Sony, but Disney gets a portion of revenue and the performance could also set up a strong prediction for "Avengers: Doomsday."
The latest Avengers film will be released in theaters on Dec. 18. The film took in $16.5 million in ticket sales on its first day, as reported by Variety.
"Avengers: Endgame," released in 2019, brought in $858.4 million domestically and $2.80 billion worldwide, ranking second all-time for both categories.
Avengers ensemble films have performed among the best Marvel films and "Doomsday" could be just the spark that Disney stock needs going forward. Expect Disney to highlight this upcoming film slate.
Another area that could be a key topic, but might not be good for the stock, would be politics.
Disney recently issued a 109-page letter alleging the Federal Communications Commission has launched a "retaliation" campaign against the company on behalf of President Donald Trump.
Investors and analysts will also be looking at networking and DTC segments to see if advertising revenue is strong and how Disney+ is performing.
Another weak quarter for those areas could see renewed pushes for Disney to consider spinning off or splitting up units to unlock shareholder growth.
Disney Stock Price ActionDisney stock is up 0.29% to $98.43 on Tuesday versus a 52-week trading range of $92.19 to $119.78. Disney stock is down 12.1% year-to-date in 2026 and down over 17% in the last 52 weeks.
Photo Courtesy: Miguel Lagoa On Shutterstock.com
Market News and Data brought to you by Benzinga APIs
A $25,000 investment in Disney (DIS -2.36%) stock would pay about $379 in annual dividend income. This is based on Disney's current $1.50 annualized dividend ($0.75 per share, paid twice per year) and on buying 253 shares at a price of $98.80 per share at the time of writing.
The stock has been stuck in a trading range for the last three years and is still trading 51% below its all-time high over five years ago. Weaker margins and heavy spending to support streaming content kept the share price in check.
However, the company has been steadily growing its revenue recently. The stock trades at a modest 14 times forward earnings estimates. If Disney's upcoming earnings report on Aug. 5 shows improving margins and growth, investors may finally see a lift in the share price on top of a 1.5% yield.
Image source: The Motley Fool.
Disney's flywheel is working Disney has steadily increased its dividend over the past few years. The pandemic disruptions in 2020 led to a suspension of dividend payments until they were reinstated in 2023 at $0.30 per share,paid semiannually. Since then, the company has raised it multiple times, culminating in the current $0.75 semi-annual payment.
The growing dividend reflects improving profitability in the business. Since fiscal second-quarter 2023 (ended in March), trailing 12-month net income nearly tripled to $12.3 billion, representing a net profit margin of 12.7%.
New CEO Josh D'Amaro has been focused on building direct-to-consumer connections with customers and driving growth in experiences (parks, resorts, cruises, and consumer products). This is the Disney flywheel in action -- popular films and characters ultimately drive interest in Disney's theme parks, products, and streaming services.
This flywheel strategy has been working. Total revenue across the business grew 7% year over year last quarter to $25.2 billion, with adjusted earnings per share up 8% to $1.57. This was led by a 10% increase in entertainment (streaming, studios, etc.) revenue, followed by experiences (+7%), and sports (+2%), including ESPN.
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What matters on Aug. 5 When Disney reports fiscal third-quarter earnings on Aug. 5, investors will want to make sure it meets revenue and earnings expectations. The consensus analyst estimate calls for adjusted revenue of $25.4 billion, up 7.5% year over year, and earnings of $1.85, up 15%.
Disney has been facing pressure on domestic park attendance, so worsening consumer spending could cause it to miss estimates. That said, Disney is coming off a strong quarter in its experiences business and also saw accelerating revenue growth in streaming. This momentum could carry over to fiscal Q3, as implied by analysts' expectations.
Over the long term, growth in park attendance and cruise passengers, which grew 2% globally last quarter, and margin improvement in streaming will be key drivers of earnings and dividend growth. These are the two areas to watch closely when Disney reports earnings.
Disney v USA v srpnu odstaví Microsoft GitHub Copilot a další AI nástroje pro kódování. Místo toho plánuje nasadit OpenAI Codex a ponechá si Claude Enterprise a Cursor.
Disney is leaning into AI under CEO Josh D'Amaro, but it's dropping Microsoft's GitHub Copilot. Blanca Cruz / AFP via Getty Images; Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images Disney has decided it no longer needs a Copilot on its AI coding journey.
The Mouse House is ditching Microsoft's GitHub Copilot and several other AI coding tools in August in the US, tech leaders told select staffers on Tuesday afternoon, according to a screenshot of an internal message viewed by Business Insider. These changes don't apply internationally, a Disney tech leader told employees.
A breakup with Disney is the latest headache for Microsoft's Copilot, which "lags behind" rivals like ChatGPT and Claude in adoption, as Business Insider's Ashley Stewart has reported. GitHub Copilot is the coding assistant in Microsoft's AI product suite.
Microsoft's loss is Sam Altman's win. Disney is preparing to adopt OpenAI's Codex coding tool, according to the screenshot. The message didn't give a timeline for the tool's introduction.
Disney will also keep staffers' access to Anthropic's Claude Enterprise and Cursor, while dropping two AI tools from Amazon: the agentic code editor Kiro and the AI assistant Q. (Claude will also no longer be accessible through the Amazon Web Services Bedrock platform.)
Copilot's challengesEight Disney tech employees told Business Insider that they rarely or never used GitHub Copilot.
One product manager said GitHub Copilot produced code that was "needlessly complex" and required clean-up.
A longtime software engineer said their access to GitHub Copilot had "lapsed for lack of use."
"Once I got Cursor and Kiro, there was no need to use it," this staffer said.
Copilot frustrated some users last month by updating its pricing to charge customers based on their AI token usage, which is industry-standard. The company said GitHub Copilot's request-based model was "no longer sustainable" as it unveiled the shift.
However, a Microsoft executive said in June that this move helped fuel the "best month ever" for the GitHub developer platform, Business Insider previously reported.
Microsoft has set out to revamp GitHub while shaking up its Copilot teams to help its many Copilot tools compete with rivals from OpenAI and Anthropic.
Disney staffers are enchanted by Claude and CursorClaude and Cursor have become fan favorites among Disney tech employees, as some superusers use agents to invoke those AI tools tens of thousands of times per day, Business Insider previously reported.
One high-level software engineer said their AI tool usage was "probably around 80% Claude at the terminal when coding."
Disney's streaming leaders created an AI adoption dashboard to track usage and have encouraged tech employees to use it to work faster, Business Insider previously reported.
"The No. 1 thing is to increase velocity," or the speed of output, a high-level AI staffer said.
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Wall Street expects a year-over-year increase in earnings on higher revenues when Walt Disney (DIS - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis entertainment company is expected to post quarterly earnings of $1.88 per share in its upcoming report, which represents a year-over-year change of +16.8%.
Revenues are expected to be $25.41 billion, up 7.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.69% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Disney?For Disney, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.73%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Disney will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Disney would post earnings of $1.49 per share when it actually produced earnings of $1.57, delivering a surprise of +5.37%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Disney doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Disney oznámil několik stovek propouštění včetně Pixaru, který podle zdroje přišel zhruba o 116 lidí. Škrty přicházejí i přes silný start „Toy Story 5“.
The Walt Disney Company has unleashed a fresh bloodbath across its entertainment empire, with Pixar taking a major hit despite the blockbuster success of “Toy Story 5.”
The “Mouse House” announced several hundred layoffs Tuesday in its third round of cuts this year, affecting Disney Entertainment Television, ESPN, corporate divisions and Disney Studios, according to SFist.
Pixar’s Emeryville animation studio was hit hardest within the film division. Disney has not confirmed how many Pixar workers lost their jobs, but a source told TheWrap that roughly 116 employees were laid off.
Disney has unleashed a fresh bloodbath across its entertainment empire, with Pixar taking a major hit. GC Images
Disney has not confirmed how many Pixar workers lost their jobs, but a source said around 116 employees were laid off. AFP via Getty Images Many of the Pixar cuts were concentrated in production and operations and reflected the studio’s current slate of projects rather than any single movie’s performance.
“These changes are part of our continual evaluation of how we manage resources and reinvest across the company as our industry continues to evolve,” a Disney spokesperson told the outlet.
The latest cuts come despite “Toy Story 5” delivering a massive box office debut after hitting theaters June 19.
The recent installment in the animated franchise raked in an estimated $312 million worldwide during its opening weekend, including a franchise-record $160 million domestically.
“We’re building a company that’s more agile,” Disney CEO Josh D’Amaro told employees in April. Getty Images for SXSW Pixar’s recent original movies, however, have produced more mixed results at the box office.
“Elio” posted the weakest opening weekend in the studio’s history, while “Hoppers” earned stronger reviews and better ticket sales but still fell short of Pixar’s established franchises’ commercial success.
The Emeryville studio has already endured repeated rounds of job cuts.
Disney then eliminated roughly 1,000 more positions in April across marketing, television, ESPN, technology, studio operations and corporate teams as it continued reshaping its workforce.
“We’re building a company that’s more agile and better equipped for how the entertainment business is changing,” Disney CEO Josh D’Amaro told employees in April.
Many of the eliminated ESPN positions were behind-the-scenes roles tied to the company’s integration of the NFL Network.
Employees were notified of the layoffs Tuesday morning. As of late 2025, Disney reportedly employed about 230,000 people worldwide.
Despite the latest cuts, Pixar’s upcoming slate still includes the original feature “Gatto,” directed by “Luca” filmmaker Enrico Casarosa, along with “Incredibles 3.”
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Disney ve fiskálním 2. čtvrtletí zvýšil tržby o 7 % na 25,2 miliardy USD a zisk ze streamingu téměř zdvojnásobil na 582 milionů USD. Upravený EPS vzrostl o 8 % na 1,57 USD. Firma očekává, že za fiskální rok 2026 upravený EPS vzroste asi o 12 %.
Netflix gave streaming investors a jolt last week. The industry leader reported second-quarter results that were fine on their own, but its forecast called for revenue growth to slow again in the third quarter, and the stock, already deep in a yearlong slide, fell further on Friday.
Walt Disney (DIS 0.31%) shareholders know the feeling. Shares of the entertainment giant have fallen about 15% in 2026, to roughly $96 as of this writing, and they trade about 22% off their 52-week high.
But there's an irony in the timing. While the market frets over the streaming leader's slowing growth, Disney's own streaming business has been moving the other direction -- toward faster growth and higher profits.
So, with the leader stumbling, is the House of Mouse the contrarian buy in streaming?
Image source: Walt Disney.
Behind the decline Disney's sell-off this year wasn't baseless. In the company's fiscal first quarter of 2026 (the period ended Dec. 27, 2025), total segment operating income fell 9% year over year. The biggest problem was the entertainment segment, where operating income dropped 35% to $1.1 billion as programming, production, and marketing costs grew faster than revenue. The sports segment's operating income fell 23%, too, dinged by about $110 million from YouTube TV temporarily dropping Disney's networks in a carriage dispute.
Layer on the long-running decline of linear television and management's own caution about consumers (Disney says it is "mindful of the macroeconomic uncertainty consumers are facing today"), and investors had reasons to sour on the stock.
Streaming profits are finally showing up But the fiscal second quarter (ended March 28, 2026) showed a company in better shape than the stock price suggests. Revenue increased 7% year over year to $25.2 billion, and total segment operating income grew 4%. Non-GAAP (adjusted) earnings per share rose 8% to $1.57.
Streaming was the standout. Disney's subscription streaming revenue grew 13% year over year, accelerating from 11% growth in fiscal Q1, with subscription fees up 16%. And the streaming business's operating income nearly doubled year over year, climbing from $310 million to $582 million. That works out to a streaming operating margin of about 11%, up from about 6% a year earlier.
The trend within the year matters as much as the comparison. Streaming operating income went from $450 million in the fiscal first quarter to $582 million in the second, and the margin stepped up alongside it.
And Disney's content engine is helping. Zootopia 2 generated $1.9 billion at the global box office, and the franchise has since surpassed 1 billion hours streamed on Disney+. Hits like that can feed the company's parks and merchandise businesses for years to come.
The parks themselves are holding up as well. Experiences revenue rose 7% in the fiscal second quarter, and the segment's operating income grew 5%. Management called current demand at its domestic parks healthy, and it expects attendance to improve in fiscal Q3 after a 1% dip in the March quarter tied partly to soft international visitation.
Put it together, and management expects fiscal 2026 adjusted earnings per share to grow about 12%, excluding the benefit of an extra week in the fiscal year. The company is also targeting at least $8 billion in share repurchases in fiscal 2026.
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Yet the stock trades at about 13 times forward earnings. That's about two-thirds of what investors are paying for Netflix's forward earnings -- for the streaming business that's accelerating, not the one that's slowing down.
Of course, Disney's cheaper multiple partly reflects its baggage. The decline of linear TV remains a headwind, and those networks still generate profits that streaming must replace. A weakening consumer could hit the parks, which remain Disney's biggest source of operating income. And film slates are hit-driven, so the box office may disappoint in any given quarter.
With that said, the market seems to be pricing Disney as if its streaming turnaround isn't happening, even as the numbers show that turnaround gaining speed. To me, that makes Disney the more interesting streaming stock today -- a profitable, diversified entertainment company at 13 times forward earnings, backed by guided double-digit earnings growth and a large buyback program.
In short, I think the pessimism has overshot, and Disney looks like a contrarian buy here. Though I'd start with a modest position. With all of this said, we'll find out more soon; Disney's fiscal third-quarter report is due in early August.
UBS čeká, že Disney ve 3. fiskálním čtvrtletí zvýší EPS na 1,91 USD a streamingové marže na 10,1 %. Pro fiskální rok 2026 ponechává odhad EPS 6,90 USD.
Walt Disney Co (NYSE:DIS, XETRA:WDP) is scheduled to report fiscal third quarter results on August 5, with UBS analysts expecting accelerating earnings growth as first-half headwinds ease and forecasting the company will maintain its fiscal 2026 guidance.
UBS expects Disney to report fiscal third-quarter revenue of $25.4 billion and segment operating income of $5.16 billion, compared with Wall Street expectations of $5.24 billion and company guidance of about $5.3 billion.
The firm forecasts earnings per share of $1.91, above the consensus estimate of $1.85 and up 18% from a year earlier.
The analysts wrote that growth should be supported by high single-digit expansion in the Experiences segment and double-digit growth in the company's streaming business, while Sports operating income is expected to decline by the mid-teens due to higher sports rights costs. They also expect box office performance to remain soft overall.
For fiscal 2026, UBS continues to forecast earnings per share of $6.90, representing 16% year-over-year growth and broadly in line with Disney's guidance. The estimate includes a roughly 4% benefit from an extra week in the fiscal fourth quarter and is expected to be driven by continued strength in Experiences, improving Sports profitability and streaming margins above 10%.
In Experiences, UBS expects revenue to rise 8.7% year over year and operating income to increase 9.6% as the business laps upfront cruise costs and pre-opening expenses related to World of Frozen. The analysts expect growth to accelerate further in the fourth quarter before receiving an additional boost from the extra fiscal week.
UBS believes domestic attendance improved during the quarter, with attendance roughly flat from a year earlier after declining 1% in the prior quarter, as comparisons related to Epic Universe's opening and international visitation became less challenging. Per-capita guest spending is expected to remain strong, increasing about 4% year over year.
Within Entertainment, UBS forecasts revenue growth of 8.7% and operating income growth of 48% to approximately $1.5 billion, driven by streaming gains and the consolidation of Fubo. The analysts expect streaming subscription revenue to increase 11% year over year, while streaming operating margins improve by 350 basis points from a year earlier to 10.1%, despite sequential pressure from higher international content spending.
The analysts also expect mixed theatrical performance during the quarter, citing stronger box office results from The Devil Wears Prada 2 and Toy Story 5, offset by weaker performances from Star Wars: The Mandalorian & Grogu and the live-action Moana.
In Sports, UBS forecasts revenue growth of 4.7%, including an approximately 3% contribution from NFL Network, while operating income is expected to decline 14% to $891 million as double-digit growth in sports rights expenses, including NBA and WWE contracts, weighs on profitability.
The analysts expect advertising revenue to increase more than 10% on stronger NBA ratings and noted that Disney recorded its first quarter of year-over-year television viewership growth since the first quarter of 2024, helped by NBA Finals audiences. UBS expects subscription and affiliate revenue growth of around 5%, with streaming gains partly offset by the NFL Network no longer being carried on Comcast's Xfinity platform.
UBS also noted that management expects mid-single-digit operating income growth for the Sports segment for the full fiscal year, with the firm anticipating a stronger fourth quarter supported by easier comparisons related to sports rights costs and last year's ESPN direct-to-consumer launch expenses.
FCC podle zprávy zvažuje, že „The View“ není skutečný zpravodajský pořad, což by ABC podřídilo pravidlům o vyváženém vysílacím čase. Zároveň má eskalovat i kontrola vysílacích licencí společnosti Disney.
The Federal Communications Commission is preparing to rule that ABC’s “The View” is not a bona fide news program, a decision that would upend more than two decades of precedent and subject the Disney-owned daytime talk show to federal equal-time rules for political candidates, according to a report.
Bloomberg reported Wednesday that the FCC is also expected to escalate a separate investigation into Disney’s broadcast television licenses, moving the matter toward an administrative hearing that could ultimately threaten ABC-owned stations in New York, Los Angeles and other major markets.
The anticipated rulings, which people familiar with the matter told Bloomberg could come before Labor Day, would represent the most aggressive regulatory action against a major US broadcaster in decades and mark a significant victory for FCC Chairman Brendan Carr’s effort to overhaul how the agency polices political programming.
The Federal Communications Commission is poised to rule that ABC’s “The View” is not a bona fide news program, according to a report. American Broadcasting Companies, Inc. via AP If the FCC strips “The View” of its longstanding news exemption, the program generally would have to offer rival candidates comparable airtime when it interviews someone running for office — a requirement ABC argues would fundamentally alter its editorial discretion.
Disney is expected to challenge any adverse rulings, according to Bloomberg.
The FCC Media Bureau’s ruling on “The View” could be appealed to the full FCC and then to federal court, while the separate license proceeding could eventually be heard by FCC Chairman Brendan Carr or the full commission before any judicial appeal.
The Post has sought comment from ABC and its parent company, Disney, as well as from the FCC.
The dispute began after “The View” interviewed Texas Democratic Senate candidate James Talarico in February, prompting questions from the FCC about whether rival candidates were entitled to equal airtime under federal broadcast law.
Carr subsequently opened an inquiry into whether “The View” qualifies for the equal-time exemption afforded to bona fide news interview programs.
FCC Chairman Brendan Carr has launched parallel reviews of ABC’s broadcast licenses and “The View’s” status as a bona fide news program. REUTERS
The FCC is reportedly preparing to escalate its review of Disney’s broadcast licenses for ABC-owned television stations. Getty Images In May, ABC and its Houston affiliate asked the FCC to reaffirm a 2002 agency ruling that designated “The View” a bona fide news interview program exempt from the equal-time requirement.
ABC escalated the fight earlier this month, arguing in reply comments that the FCC was attempting to insert itself into the network’s editorial decisions.
“The First Amendment does not permit the government to sit in an editor’s chair,” the ABC filing states.
Semafor reported earlier this month that “The View” has quietly scaled back bookings of candidates running in competitive races while the FCC’s review remains pending.
ABC parent company Disney has vowed to fight any adverse ruling from the FCC. AP The outlet also reported that producers declined a request from New York City Mayor Zohran Mamdani’s team to host the mayor alongside Democratic congressional nominees Darializa Avila Chevalier and Claire Valdez while proceeding cautiously amid the FCC inquiry.
Meanwhile, conservative organizations including the Media Research Center, America First Legal, the Center for American Rights and the Article III Project have urged the FCC to deny renewal of ABC’s broadcast licenses, accusing the network of political bias and failing to serve the public interest.
Disney is exploring making some content on its namesake streamer free to watch. Stefano Facchin/Alessio Morgese/NurPhoto via Getty Images Disney is exploring making some of its streaming content available at an unbeatable price: free.
The Mouse House is discussing making some content accessible on Disney+ without a paywall, according to two people familiar with the matter.
Product and tech chief Adam Smith spoke about enabling free-tier content during a streaming town hall on Thursday afternoon, one staffer said. Smith didn't share a timeline for this initiative or a sense of the scope, this person added.
A person familiar with Disney's streaming strategy said these talks are part of an ongoing discussion about concepts to better serve fans.
Currently, the Disney+ and Hulu bundle costs $12.99 a month with ads or $19.99 without ads at full price.
Free streaming services like YouTube have become popular with audiences, generating significant growth in viewership share on US-based TVs compared to their paid peers, according to Nielsen data. The three largest free streamers accounted for 18.7% of watch time on US TVs in April, up from 16.8% a year earlier and 12.7% in April 2024.
As paid streamers have raised prices, consumers have increasingly sought out free content on YouTube and on ad-supported services like Tubi and The Roku Channel. (Tubi parent Fox is planning to double down on free streaming by buying Roku for $22 billion.)
A free tier could help Disney+ stand out among paid streamers. Apple TV and Paramount+ let users sample some full episodes, but paid streaming services generally don't have robust free offerings.
Disney and its Hollywood peers are also looking to boost engagement by embracing new formats like short-form video, podcasts, and micro dramas, which are bite-sized vertical shows.
In recent months, Disney has added vertical clips to its flagship streaming app, as has Paramount+. Disney CEO Josh D'Amaro has told staffers he's prioritizing "product and technology innovation" in streaming.
Netflix announced this week that it's adding 3- to 20-minute videos next month from publishers like BuzzFeed Studios, Condé Nast, Hearst Magazines, Penske Media, and People Inc. The streaming giant made a major move into video podcasts earlier this year and has also dabbled in vertical video.
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Shanghai Disneyland je nejvýdělečnější mezinárodní park Disney: od otevření přinesl mateřské společnosti zisk 516,2 milionu USD. V roce 2024 navíc návštěvnost stoupla o 5 % na 14,7 milionu.
Shanghai Disneyland is Disney's highest earning international international resort. (Photo by VCG/VCG via Getty Images)
VCG via Getty Images
Disney has revealed that the total profit payout it receives from one of its theme parks outside the United States passed the $500 million mark last year making it the studio's highest-earning international outpost based on its share of the bottom line.
Surprisingly, the accolade doesn't go to Disneyland Paris even though it generates more revenue than any other Disney park outside the U.S. Instead, Shanghai Disneyland takes the crown of paying more of its profit to its parent than any other international Disney park with the total coming to an eye-watering $516.2 million since the doors to the resort swung open a decade ago.
The sprawling site on the eastern edge of Shanghai encompasses two hotels, a lake, an entertainment district and a fairytale-themed park which Disney's former chief executive Bob Iger famously described as being "authentically Disney, distinctly Chinese." There is good reason for this. Instead of creating a carbon-copy of Disney's American theme parks, its designers, who are known as Imagineers due to their imaginative use of engineering, tailored the Shanghai site to the local market. Everything was customized, from the park's layout and attraction lineup right down to its wide range of Chinese food.
It has cast a powerful spell as Shanghai Disney welcomed its 100 millionth guest in November last year and it isn't stopping there. At an event marking its tenth anniversary last month the resort announced that it is building a third on-site hotel, called the Disney Enchanted Star, with a fourth property also under development to cater for the surging demand.
According to the latest data from the Themed Entertainment Association (TEA), attendance at Shanghai Disneyland rose 5% to 14.7 million in 2024 driven by the opening of a new land themed to the Oscar-winning computer animated movie Zootopia. This made it the world's fifth most-visited theme park but the magic touch it has on Disney's bottom line has remained a closely-guarded secret. Until now.
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Shanghai Disneyland has surged in popularity since the opening of its 'Zootopia' land. (Photo by Tang Yanjun/China News Service/VCG via Getty Images)
China News Service via Getty Images
Disney doesn't list the results of individual parks in its filings in the United States and China's companies register isn't public. However, recent filings for an obscurely-named company in the United Kingdom have lifted the curtain on the fortunes of Shanghai Disneyland.
Unlike Disney's theme parks in the United States, the resort is a public-private partnership between the media giant and China's state-owned Shanghai Shendi Group.
Disney only has a 43% stake in the company which owns the resort itself with the remainder in Shendi's hands. In contrast, Shendi is a minority shareholder in the resort's management company which is controlled by Disney through its 70% stake. In return, Disney receives royalties as well as a management fee based on the operating performance of the resort.
Disney’s shares in the resort and the management company are held by a wholly-owned subsidiary called WD Holdings (Shanghai) in Burbank, California. It pays dividends from its profits to the Disney companies which directly own it. Precisely 47% of WD Holdings is owned by The Walt Disney Company Limited in London which files publicly-available financial statements. Its latest set of filings were released recently and show that its dividends from WD Holdings began in 2019 and peaked at $57.7 million (£43.1 million) last year as I recently revealed in the Daily Mail.
This only represents 47% of the dividend so the full amount for 2025 is $122.7 million (£91.7 million) as the chart below shows. The dividend hit its lowest level in 2021 when it crashed by 60.3% to $25.9 million (£18.9 million) the midst of the pandemic. It has surged since then, thanks partly to the opening in December 2023 of the new Zootopia land. Is the first and only theme park area based on the film which was a huge hit in China.
Dividends paid by Shanghai Disneyland's holding company
MSM
A massive 23.1% of Zootopia's $1 billion box office was generated in China while a sequel last year did even better. It hauled in $630 million from China making it the highest-grossing Hollywood film in Chinese history. The theme park land capitalizes on this.
Home to a cutting-edge roving simulator ride, it is filled with brightly-colored buildings which have robotic replicas of the characters from the film peering out of their windows. Disney put more than 260 Zootopia products on sale in the park and created themed food for its restaurants. More than 532 tons of its pink paw-shaped pawpsicles alone have been sold. It has given a glow to Disney's bottom line.
'Zootopia' fans can try real-life pawpsicles in Shanghai Disneyland. (Photo by Tang Yanjun/China News Service/VCG via Getty Images)
China News Service via Getty Images
Three of its four international parks either don’t pay a dividend or only pay small sums. Disney doesn’t own its resort in Tokyo, which is run by specialist leisure operator Oriental Land Company (OLC). In return for licensing its intellectual property, OLC pays Disney royalties but not a a share of its profits. Disneyland Paris pays both but the only time it has paid out a share of its profits was in 1993 when its dividend yielded just $10.2 million (FF56.6 million) for Disney as I recently reported in The Guardian.
Likewise, Hong Kong has one of the smallest Disney parks and in 2024, following the opening of a land themed to the Oscar-winning film Frozen it made its highest-ever profit of $107.8 million (HK$838 million) which is lower than the dividend its counterpart in Shanghai paid out last year.
Shanghai's total profit payout of $516.2 million (£392.8 million) is the highest of any of Disney's international parks and doesn't even include any royalties as they are paid directly to one of its U.S. subsidiaries so they aren't shown on the U.K. filings. The total dividend for last year will actually be even higher than the amount reported in the financial statements as Disney shuffled its Shanghai shares into yet another subsidiary mid-way through 2025 and the filings for this entity are confidential.
Disney’s theme parks produced 57% of its $17.6 billion operating income and nearly 40% of its $94.4 billion revenue in 2025 which explains why the company is doubling down on them. It has earmarked $60 billion for investment in its theme park division by 2033 with a new Spider-Man themed roller coaster coming to Shanghai and a second park widely expected to get the green light as this report explained.
Nevertheless, in line with its ownership stake, it is understood that Disney covered around 43% of the estimated $5.5 billion construction cost of its resort in Shanghai so despite banking a string of blockbuster dividends from it, the studio is still waiting for its happy ending.
Walt Disney (DIS) v posledním obchodním dni klesl o 2,1 % na 97,41 USD, zatímco širší trh rostl. Investoři čekají na výsledky, analytici očekávají EPS 1,88 USD a tržby 25,41 mld. USD.
In the latest trading session, Walt Disney (DIS - Free Report) closed at $97.41, marking a -2.1% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.72%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.12%.
The entertainment company's stock has dropped by 0.21% in the past month, falling short of the Consumer Discretionary sector's gain of 2.31% and outpacing the S&P 500's loss of 0.9%.
Investors will be eagerly watching for the performance of Walt Disney in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.88, signifying a 16.77% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $25.41 billion, indicating a 7.44% upward movement from the same quarter last year.
DIS's full-year Zacks Consensus Estimates are calling for earnings of $6.86 per share and revenue of $101.72 billion. These results would represent year-over-year changes of +15.68% and +7.73%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Walt Disney. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.06% rise in the Zacks Consensus EPS estimate. Right now, Walt Disney possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Walt Disney is currently exchanging hands at a Forward P/E ratio of 14.52. This indicates a discount in contrast to its industry's Forward P/E of 17.12.
It's also important to note that DIS currently trades at a PEG ratio of 1.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Media Conglomerates industry was having an average PEG ratio of 0.65.
The Media Conglomerates industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 77, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Netflix zvýšil tržby na 12,25 miliardy USD a volný peněžní tok na 5,09 miliardy USD, zároveň zvýšil výhled FCF na zhruba 12,5 miliardy USD. Disney sice zvýšil tržby na 25,17 miliardy USD, ale čistý zisk meziročně klesl o 24,73 %.
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Netflix (NASDAQ: NFLX | NFLX Price Prediction) and Walt Disney (NYSE: DIS) just reported quarters showing two opposite business models behind the same word: streaming. Netflix delivered an asset-light cash haul. Disney posted a record parks quarter and streaming profitability inflection, but carried a heavy capital bill. The contrast matters as discretionary budgets tighten.
Netflix Squeezes Cash. Disney Buys Cruise Ships. Netflix put up Q1 2026 revenue of $12.25 billion, up 16.19% year over year, and free cash flow of $5.09 billion on just $196.1 million of capex. The ad tier drew over 60% of sign-ups in ads markets, with advertiser count climbing 70% to more than 4,000 clients. A $2.8 billion Warner Bros. termination fee juiced the headline, but the operating engine was already humming.
Disney’s Q2 FY2026 told a different story. Revenue reached $25.17 billion, up 6.55%, with adjusted EPS of $1.57 beating the $1.4955 estimate. Entertainment SVOD operating income surged 88% to $582 million, hitting a 10.6% margin for the first time. Experiences set a Q2 record at $9.49 billion. The catch: capex of $1.97 billion and net income that fell 24.73% year over year.
Business Driver Netflix Disney Quarterly capex $196M $1.97B FY operating margin target 31.5% 10% SVOD Main growth engine Ads + price hikes Parks + SVOD inflection One Walks Away. One Doubles Down. Netflix collected its breakup check, restarted buybacks, and stayed disciplined. The company repurchased 13.5 million shares for $1.3 billion with $6.8 billion still authorized, and raised 2026 free cash flow guidance to roughly $12.5 billion. Japan led the quarter, with the World Baseball Classic becoming the most-watched Netflix program ever in that country.
Disney went the other way. ESPN acquired NFL Network for a 10% noncontrolling interest in ESPN, Hulu Live TV merged into Fubo at 70% Disney ownership, and the Disney Adventure cruise launched in Singapore. FY2025 capex hit $8.02 billion, a 48% jump. Sports operating income is expected to decline roughly 14% year over year in Q3 on programming costs.
The Next Test Is Sticky Inflation Watch whether Disney’s per capita parks growth, up 5% domestically, holds as gasoline spending climbed to $552.8 billion in May 2026 from $415.7 billion in January. Recreation services spending hit $862.3 billion in May 2026, a dataset high, which favors couch entertainment over plane tickets. Netflix’s content amortization is expected to peak in Q2 2026, so margin expansion in the back half is the real proof point.
Why Netflix’s Cash Machine Wins Netflix edges Disney here. The streaming wars are effectively over and Netflix won, and the numbers back that read: a 31.5% operating margin target against a Disney SVOD business that just crossed 10.6%. NFLX is down 21.31% year to date, so the market is pricing in tougher comps. For diversified entertainment exposure, Disney offers a broader mix of parks, sports, and streaming assets. For insulated, capital-light cash generation, Netflix is the cleaner story, even after a rough six months.
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Disney is bolstering its namesake streamer by integrating shows and features from Hulu. Illustration by Samuel Boivin/NurPhoto via Getty Images; Chris Delmas/AFP via Getty Images Disney has momentum in streaming, and its leaders are looking for ways to further narrow the gap with Netflix in the battle for eyeballs.
Since launching Disney+ in 2019, Disney's direct-to-consumer business has gone from a promising but costly project to a profit engine.
CEO Josh D'Amaro is prioritizing streaming by investing in technology like AI-generated ad tools for Disney+. He's also named TV head Dana Walden as the company's first-ever chief creative officer and tapped Adam Smith and Joe Earley as co-presidents of the DTC business.
Business Insider recently published organizational charts showing who reports to D'Amaro and Walden, and we have new details on who's helping lead its streaming strategy, including key product and tech executives.
Smith, who's also the product and tech chief for Disney Entertainment, joined the company in September 2024 from YouTube. He has eight direct reports, including Andre Rohe, Disney's EVP of Product Engineering.
Smith has delivered a number of key updates to streaming staffers, including clarity on its "super app" ambitions, news of a shake-up of its streaming commerce and data teams, and a progress report on the Disney+ AI ad tool, which the tech chief said in a recent meeting is "one of the clearest areas where we're really making traction."
Rohe has helped Disney tech staffers better grasp the company's AI goals, including by saying that employees shouldn't be "tokenmaxxing," or using AI tools regardless of how productive they are.
Disney's standing in the streaming warsDisney's streamers have gained ground in 2026, scoring their highest monthly TV viewership share in nearly three years in March before posting their best month versus Netflix in nearly a year, according to Nielsen's US data. The slight rebound comes after Disney's streaming viewership had stagnated for years.
Disney+ and Hulu have become profitable thanks to a large base of loyal, engaged subscribers. Disney made $582 million in streaming profits last quarter, and while the company no longer discloses its subscriber count, it had 196 million subscriptions as of late September 2025.
Despite a steady stream of price hikes, Disney+ and Hulu have the lowest cancellation rates in the business, besides Netflix. Less than 4% of those services' customers quit in May, according to data firm Antenna.
To boost engagement further, D'Amaro is bringing Disney+ and Hulu together to create a one-stop shop in streaming, while looking to use resources more efficiently. The Mouse House's flagship streamer is also betting on short-form video, as are Peacock, Netflix, and Paramount+.
To better understand Disney's product and tech strategy, Business Insider is publishing parts of Disney's internal streaming org chart, based on screenshots sent by an employee.
Below are the complete org charts showing Smith's and Rohe's direct reports, based on Disney's records.
Here are the direct reports to Smith, Disney Entertainment's product and tech chief, in alphabetical order by first name:
NamePositionAndre RoheEVP, Product EngineeringChristopher (Chris) LawsonEVP, Content Platforms & OperationsDanette DugasSenior Executive AssistantDimitri KontopidisExecutive Director of Product & Tech Strategy and OperationsErin TeagueEVP, Product ManagementMeghan BorsicSVP, DesignMichael CupoSVP, Business OperationsTony DonohoeEVP, Ad PlatformsHere are the direct reports to Andre Rohe, Disney's EVP of product engineering, in alphabetical order by first name:
NamePositionAndrew HydeVP, Product Software EngineeringChristopher ShattuckHead of India Product & TechChristopher (Chris) SwordDirector of Data AnalyticsDevika ChawlaSVP, Product Software EngineeringDominique CharretteVP, Data AnalyticsJay DonnellSVP, Product Software EngineeringJustin AltwiesDirector of Product Engineering and Business OperationsMali SonnierSenior Executive AssistantMayank SachanVP, Growth EngineeringMehran BozorgiSVP, Product Software EngineeringNicholas BrookinsSVP, Media EngineeringZachary CavaVP, Product Software EngineeringDo you work for Disney or have a tip? Contact this reporter via email at [email protected] or Signal at jamesfaris.01.
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Šéf FCC Brendan Carr obvinil Disney z „kampaně dezinformací“ v souvislosti s vyšetřováním ABC. FCC zároveň řeší i obnovu licencí osmi stanic ABC. K vyšetřování pořadu The View obdržela FCC více než 51 000 podání a k širšímu procesu obnovy licencí téměř 40 000 podání.
Brendan Carr, the Trump-aligned chairman of the Federal Communications Commission (FCC), has accused Disney of running a “campaign of misinformation” as the media group defends itself against investigations the regulator has initiated.
Disney-owned ABC launched a public awareness campaign earlier this week to encourage viewers to back the network as it faces two separate investigations before the US media regulator.
Since ABC began running advertisements encouraging viewers to file public comments, the FCC has received more than 51,000 submissions on its investigation into whether the daytime talk show The View violated equal time provisions around political candidates appearing on programs.
There have also been nearly 40,000 submissions regarding the commission’s broader investigation into whether ABC should be able to renew its licenses for the eight local television stations it owns around the country. The outcome of that license renewal process, which could take more than a year, is extremely crucial for the future of the network.
Carr said that Disney “is running a fairly standard, off-the-shelf PR strategy” and is seeking to litigate the case in the media. Taking it one step further, Carr said: “I do think that Disney is running a campaign of misinformation here, I think in a lot of ways.”
He specifically called out ABC for saying in its advertisement raising awareness about The View investigation that “the FCC wants to control who is allowed to appear on the show.” “Our position is that we are enforcing the provisions of the Communications Act that Congress has passed,” he said. “We’re going to apply the law. Again, we have not made a decision one way or the other. We’re open-minded. We’ll see what they say.”
Asked whether the FCC would factor in the overwhelming proportion of comments that are defending ABC when making decisions about the network, Carr said: “We have our ways of combing through the comments and we evaluate the merits of what people are saying. We look at the facts and the arguments that are being presented. This is what we do day in and day out. Maybe it’s more comments than we normally get, but it’s not entirely unprecedented when you get issues that break above the media noise floor.”
Some telecom experts critical of Carr have said the license renewal process could ultimately take years, leaving the network in limbo. Asked by the Guardian about those concerns, Carr said it’s too early to say how long it could go.
“It’s not been decided at the FCC yet whether to renew the licenses, or whether we can’t make a finding to renew and therefore you set it for hearing through a hearing designation order,” he said. “Again, at this point, all options remain on the table and it can be dictated by the facts and the law, and we just got to go forward. If it’s short, great. If it’s long, great. But we got to apply the Communications Act and the provisions.”
Anna M Gomez, the lone Democrat-appointed FCC commissioner, reiterated her belief that Carr is using investigations and the license renewal process to put editorial pressure on ABC to go soft on the Trump administration, and not out of concern about whether Disney is discriminating against employees based on their race and gender, the rationale the chairman has given.
“It is so clear that this early license renewal is being done to pressure Disney,” she said. “This is all designed to pressure Disney to cave.”
Gomez also expressed doubt about whether public comments supporting ABC would factor into the FCC’s decision-making.
“Let’s not pretend that the public’s opinion will have an impact on the outcome,” she said. “I suspect this FCC will cherry-pick the submissions of partisan organizations to support its goal of silencing critics.”
Disney má podle 24/7 Wall St. cílovou cenu 110,07 USD, protože růst ziskovosti a marže ze streamingu zrychlují. Upravený EPS za 2. čtvrtletí činil 1,57 USD a tržby dosáhly 25,168 miliardy USD.
Disney (NYSE:DIS | DIS Price Prediction) has spent 2026 grinding sideways while the underlying business quietly accelerates. Shares are down 10.98% year to date, yet streaming margins just crossed double digits and FY26 EPS growth is guided at roughly 16%. That disconnect is the entire setup for our call.
Our 24/7 Wall St. price target for Disney is $110.07, implying 8.68% upside from $101.28. We rate Disney a buy with high confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $101.28 24/7 Wall St. Price Target $110.07 Upside 8.68% Recommendation BUY Confidence Level 90% A Streaming Inflection Hiding Behind a Sideways Tape Disney is down 14.3% over the past year and up 1.96% over the past week, with a 14-day RSI of 49.03 that reads as neutral. The stock sits between a 52-week low of $92.19 and a high of $123.85.
The May 6 earnings report told a much better story than the tape. Q2 FY26 adjusted EPS came in at $1.57 versus $1.4955 expected, on revenue of $25.168 billion, up 6.55% year over year. Operating income jumped 31.29%, Entertainment SVOD operating income surged 88% to $582M, and the Experiences segment posted record Q2 revenue of $9.487 billion. Management raised the buyback target to at least $8 billion.
The Case for $120+ The bull thesis hinges on streaming. Entertainment SVOD just hit a 10.6% operating margin, with 196M combined Disney+ and Hulu subscribers. Add the ESPN DTC launch, the NFL Network acquisition, and double-digit FY27 EPS growth guidance, and the operating leverage story is real.
Experiences keep printing records, helped by recreation spending of $864.2 billion in April 2026, a fresh high. The $129.67 analyst target, backed by 27 Buy ratings versus 1 Sell, is the bull scenario. Hit FY27 EPS estimates with a 19x multiple and Disney trades north of $120.
What Could Go Wrong Q1 FY26 free cash flow swung to negative $2.278 billion on California wildfire tax payments, and Q3 Sports operating income is guided down roughly 14% on higher programming costs. The NFL deal is $0.03 dilutive to FY26 EPS, and Polymarket traders give Disney+ only a 28% chance of reaching 150M users by September.
Bulls would counter that the Q1 cash flow hole reflected tax timing rather than operational weakness, and that Q2’s $4.941 billion in free cash flow shows the underlying engine is intact. A bear scenario clipping the multiple to 14x forward earnings drags the stock toward $88.
Disney Price Prediction 2026-2030 The 24/7 Wall St. price target of $110.07 is a buy with 90% confidence. The tipping factor is the SVOD margin breakout combined with a forward P/E of just 14x on a name guided to 12% to 16% EPS growth. The setup favors investors who believe streaming margins keep expanding into FY27. Investors who think Sports rights inflation eats the entire DTC win may want to wait for further evidence.
Year 24/7 Wall St. Price Target 2026 $110 2027 $122 2028 $135 2029 $148 2030 $162 These projections assume Disney executes on the double-digit EPS growth path guided for FY26 and FY27. Material upside or downside hinges on streaming margin trajectory, NFL economics, and the pace of Experiences expansion in Asia and the Middle East.
Disney má ve třetím fiskálním čtvrtletí vykázat mírné zlepšení návštěvnosti domácích zábavních parků. Bank of America čeká podporu i od silné sledovanosti finále NBA a potvrzuje cílovou cenu 125 USD.
Walt Disney Co (NYSE:DIS, XETRA:WDP) is expected to report modestly improving attendance trends at its domestic theme parks in its fiscal third quarter, Bank of America analysts have projected ahead of the entertainment giant’s upcoming report.
The bank’s analysts wrote that Disney's Experiences segment likely benefited from a slight improvement in US attendance compared with the fiscal second quarter, despite broader industry commentary pointing to mixed demand trends at theme parks.
The analysts also noted that lower fuel prices could provide an additional boost to consumer spending through the summer months.
Bank of America noted that gains from stronger attendance are expected to be partially offset by costs associated with cruise ship dry docks, though comparisons should also benefit from lower pre-opening expenses than a year earlier.
Within Disney's Sports business, the bank wrote that strong viewership for the NBA Finals likely supported results, but shorter playoff series and the blackout of NFL Network programming on some distributors may have weighed on performance.
In the studio segment, analysts said Star Wars: The Mandalorian and Grogu performed below expectations.
Bank of America also highlighted Disney's progress in its direct-to-consumer streaming business, noting that the company has expanded margins in recent years and remains on track to achieve double-digit subscription video-on-demand margins in fiscal 2026. However, the bank expects Disney to continue investing in growth initiatives, particularly international content production, which could support subscriber and revenue growth while moderating the pace of future margin expansion.
The firm maintained its fiscal third-quarter estimates for Disney, projecting revenue of $25.38 billion, operating income of $5.30 billion and earnings per share of $1.87.
It also left unchanged its fiscal 2026 earnings forecast of $6.88 per share.
Bank of America reiterated its ‘Buy’ rating on Disney shares and a price target of $125, above current levels of about $102, citing expected growth in streaming profitability, a recovery in parks attendance, long-term opportunities in sports, and the company's management team.
The company will report its Q3 earnings on August 5.
Toy Story 5 od Disney o víkendu celosvětově utržil 312 milionů USD a zaznamenal největší filmový debut roku 2026 i nejlepší start v historii série. Akcie DIS přesto po předchozím růstu jen mírně klesají.
Walt Disney DIS shares are slightly down following a recent surge, despite impressive weekend box-office results for Toy Story 5, which earned $312 million globally. This debut marks the largest movie opening of 2026 and the best launch in the franchise's history, bolstering the case for DIS's intellectual property (IP) strategy. However, the absence of a new operating update has led to a period of consolidation for the stock.
Franchise Engine: Toy Story 5's success extends beyond box-office numbers. DIS can leverage its franchises across various platforms including theatrical releases, Disney+, consumer products, theme parks, and digital experiences, highlighting the unique earnings potential of its character portfolio. Muted Stock Reaction: Following DIS's recent stock performance, investors may have already factored in expectations for a stronger content lineup. They are now looking for concrete evidence that franchise momentum will enhance streaming engagement, boost consumer product sales, and accelerate overall earnings. Streaming Quality: In Q2, reported on May 6, DIS saw a 13% increase in Entertainment SVOD revenue, with operating income soaring 88% to $582 million. The SVOD margin reached 10.6%, indicating that streaming is becoming more profitable. Additionally, SVOD advertising revenue grew by 12%, providing another monetization avenue. Experiences Resilience: Disney Experiences revenue rose 7% in Q2, with segment operating income increasing by 5%, both achieving record highs for the fiscal quarter. However, domestic attendance dipped by 1%, and pre-opening costs impacted profit margins. Investors are also monitoring potential pressures from Universal’s Epic Universe in Orlando. Parks Outlook: Management indicated that international visitor challenges and Epic Universe-related issues are expected to lessen. Meanwhile, Disney World bookings remain robust, and domestic attendance is anticipated to improve in Q3 compared to Q2. Sports and Capital Return: Last quarter, DIS raised its FY26 adjusted EPS growth forecast to around 16%, including an additional week, and reaffirmed double-digit growth for FY27. However, Q3 sports operating income may decline by about 14% year-over-year due to programming costs and timing. At least $8 billion in buybacks for FY26 is also planned to support shareholder returns.The recent success of Toy Story 5 serves as a testament to DIS's franchise strategy. The company's narrative is not solely based on theatrical performance but also on its capability to transform major IP into streaming engagement, merchandise sales, and long-term consumer connections. The stock's subdued movement is understandable given its recent performance, as the box-office news alone does not alter the short-term outlook. Future indicators will focus on DIS's ability to maintain double-digit streaming revenue growth with sustainable margins, stabilize domestic park attendance amid Epic Universe competition, and keep ESPN profitable in the face of rising sports rights costs. If these elements align, DIS could see a more resilient earnings recovery beyond just hit-driven content rebounds.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
