DIS US S&P 500DJIARussell 1000 Earnings call
The Walt Disney Company (DIS) · Q2 2026 results and valuation
Share price: $119.65 · 2026-11-11
The Walt Disney Company is a global entertainment company operating in the entertainment, sports, and experiences segments. It produces and distributes film and episodic content through linear networks, direct-to-consumer streaming services, and licensing agreements. The company operates in international markets and provides content for various audiences, including families and sports fans. Source: 10-K annual report (2025-11-13)
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 5 Aug 2026 and 6 May 2026
Net income up 17.4% on the previous quarter. Management sounded cautious, though noticeably more positive answering analysts.
1 · Numbers
+17.4%
Net income vs Q1 2026
Outlook given
Net income 2.64B vs 2.25B
Revenue +0.3%
Against the same quarter last year (Q2 2025) it is −49.9%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, and more positive than the script.
Last call it was different: script and answers matched.
3 · What stood out
The Walt Disney Company expects the Experiences segment to deliver operating income growth at the high end of its previously provided high-single-digit growth guidance for the fiscal year.
Valuation
Is The Walt Disney Company undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-09-27), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 4.5% growth a year (3-year revenue growth), the model's fair value is $68.65 a share — the stock trades 74% above it. Today's price assumes 10.5% growth a year.
Current price
$119.65
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+10.5% for 10 yrs
Fair value / share
$68.65
Buy below
$51.49
Price vs fair value
Overvalued 74%
Price vs buy-below price
Overvalued 132%
Read between the lines
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Guidance
Total segment operating income rose 21% ahead of prior guidance while total company revenue grew 7%, driven by record fiscal Q3 revenue and segment operating income for Disney Experiences.
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Figure
Toy Story generates more than $1 billion in annual global retail sales across all retailers, reaching fans across every Disney park and cruise ship.
Source quote
“Across all retailers, Toy Story generates more than $1 billion in annual global retail sales and reaches fans across every Disney park and cruise ship, including 4 immersive lands, 19 attractions and 2 hotels.”
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Figure
The Experiences segment reached a record revenue of $10 billion in Q3 2026, which is 10% higher than the revenue reported in Q3 of the previous year.
Source quote
“It was another record revenue quarter for the Experiences segment. Revenue was $10 billion. It's 10% above where we were in Q3 last year.”
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Guidance
The company now expects the Experiences segment to deliver operating income growth at the high end of its previously provided high-single-digit growth guidance for the fiscal year.
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Key theme
Return on invested capital in Experiences has increased meaningfully over time, and the company expects strong returns into the future.
Source quote
“Our return on invested capital in Experiences has increased meaningfully over time, and we do expect strong returns into the future.”
4 more
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Key theme
The company is utilizing cash previously set aside for the OpenAI deal and expected proceeds from the A&E transaction to fund operations.
Source quote
“And 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.”
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Figure
The company is on track to spend $24 billion on content across the company this year.
Source quote
“On content, we're on track to spend $24 billion across the company this year.”
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Key theme
The consumer touch points that Walt Disney's streaming platforms provide, they give us a global user base to communicate with and importantly, a critical first-party dataset that will enable personalization and continued…
Source quote
“And the consumer touch points that our streaming platforms provide, they give us a global user base to communicate with and importantly, a critical first-party dataset that will enable personalization and continued product innovation and it establishes a foundation that we can build new revenue streams on top of over time.”
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Key theme
Disney Experiences, Disney+, and ESPN grew guests, users, and audiences respectively compared to the prior year quarter, showing growth across core platforms.
Source quote
“Our core platforms, Disney Experiences, Disney+ and ESPN grew guests, users and audiences, respectively, versus the prior year quarter.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“And Robert, you may recall last year when there was a lot of concern about we were not terribly concerned about it, and we had put out some forecasts.”
“And then on the experiences side, we clearly understand how much a Disney vacation means to our fans, and we're using AI to reduce some of the complexities that come...”
“And to remind everyone, we're achieving this even during a period where there's a fair amount of macro uncertainty.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-27)
| Metric | Q2 2026period end 2026-06-27 | Q1 2026period end 2026-03-28 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 25.25B | 25.17B | +0.3% | 23.65B | +6.8% |
| Operating income | 5.55B | 4.60B | +20.7% | 4.58B | +21.4% |
| Net income | 2.64B | 2.25B | +17.4% | 5.26B | −49.9% |
| EPS | 1.51 | 1.27 | +18.9% | 2.92 | −48.3% |
| P/E today 24.1 | 20.4 | 14.8 | +5.6 | 19.2 | +1.2 |
Topics
Most discussed now
- New The strength was supported in large part by Walt Disney's sophisticated commercial tools.
- New As Walt Disney thinks about shareholder returns in that aspect of capital allocation, I'd certainly highlight 2 things: number one is...
- New The churn on the bundle is significantly lower than its Hulu or Disney+ stand-alone products when Walt Disney looks at similar...
- What Walt Disney is seeing this quarter is proof that coordinating its franchises, sharing data and technology and building seamless fan…
- Just from an OI and a margin perspective, the Experiences segment, again, delivered Q3 records, which it was fueled by...
Faded since Q1 2026
- Fading This is deliberate as Walt Disney hopes it helps explain why it believes the company is uniquely positioned, lays out its...
- Fading In the breakthrough creative storytelling that sets Disney apart; second, strengthening Walt Disney's streaming business through product…
- Fading Walt Disney understands the importance of investing in existing franchises but then also taking creative risk to build brand-new ones.
- Fading Walt Disney is focused on investing in IP that really breaks through that builds those fan connections endure.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
Revenue reached $25.2 billion in the third quarter of fiscal 2026, an increase of 7% from $23.7 billion in the third quarter of fiscal 2025.
- Results of operations · SEC 8-K
Revenue for the second quarter of fiscal 2026 was $25.2 billion, an increase of 7% compared to $23.6 billion in the second quarter of fiscal 2025.
- Director or officer change; Shareholder vote results · SEC 8-K
The Walt Disney Company appointed CEO Josh D’Amaro to the Board of Directors and Executive Committee on March 18, 2026, following shareholder votes on several matters.
- Other events · SEC 8-K
The Walt Disney Company entered into a 364-Day Credit Agreement for up to $5.25 billion, replacing a previous agreement of the same amount dated February 28, 2025.
- Director or officer change · SEC 8-K
The Walt Disney Company terminated Kristina K. Schake as Senior Executive Vice President and Chief Communications Officer, effective March 19, 2026, with separation benefits provided per her employment agreement.
- Other events · SEC 8-K
- Director or officer change; Other events · SEC 8-K
The Walt Disney Company appointed Josh D’Amaro as Chief Executive Officer and Robert A. Iger as Senior Advisor, effective March 18, 2026, with D’Amaro's base salary set at $2,500,000.
- Results of operations · SEC 8-K
The Walt Disney Company reported revenue of $26.0 billion for the first quarter of fiscal 2026, up 5% from $24.7 billion in the first quarter of fiscal 2025.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.
Cash & runway
Cash & equivalents
$5.18B
2026-06-27
Long-term investments
$7.63B
total liquidity $12.81B
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -3.4% YoY, -1.6% QoQ.
| Quarter | Shares |
|---|---|
| Q4 2024 | 1.81B |
| Q1 2025 | 1.81B |
| Q2 2025 | 1.80B |
| Q4 2025 | 1.79B |
| Q1 2026 | 1.77B |
| Q2 2026 | 1.74B |
Shares outstanding: 1.73B (2026-07-29)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 74 filings; 50 filings parsed.
Sold by insiders
20.5K shares
$2.2M · 5 transactions
Bought by insiders
916 shares
$98.8K · 1 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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fiscal '26
double-digit margins for SVOD
Source quote
“We delivered a 13% SVOD operating margin in fiscal Q3, and we remain on track for double-digit margins in fiscal '26, excluding the 53rd week impact.”
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beginning in spring of 2027
introduce elements of this expanded ecosystem
Source quote
“We expect to introduce elements of this expanded ecosystem beginning in spring of 2027.”
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fiscal year '26
guide to the high end of our prior high-single-digit OI growth
Source quote
“we did just this morning, guide to the high end of our prior high-single-digit OI growth for fiscal year '26, and that excludes the 53rd week.”
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first half of '26
costs associated with those tariffs
Source quote
“the costs associated with those tariffs were actually in the first half of '26.”
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this year
content spending of $24 billion
Source quote
“On content, we're on track to spend $24 billion across the company this year.”