Walt Disney (NYSE:DIS) Posts Quarterly Earnings Results, Beats Estimates By $0.20 EPS

Walt Disney (NYSE:DIS) issued its quarterly earnings data on Wednesday. The entertainment giant reported $2.06 EPS for the quarter, topping the consensus estimate of $1.86 by $0.20, FiscalAI reports. The firm had revenue of $25.25 billion for the quarter, compared to analyst estimates of $25.39 billion. Walt Disney had a net margin of 8.70% and a return on equity of 9.90%. The business’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period in the prior year, the business posted $1.61 EPS. Walt Disney updated its FY 2026 guidance to 6.642-6.642 EPS.

Here are the key takeaways from Walt Disney’s conference call:

• Q3 results exceeded prior guidance, with total company revenue up 7% and segment operating income up 21%; management reiterated its full-year outlook and expects Experiences operating-income growth at the high end of its prior high-single-digit range.
• Disney Experiences delivered record quarterly revenue of approximately $10 billion, supported by 4% global guest growth, 3% domestic attendance growth, 4% higher per-capita spending, healthy forward bookings, and continued expansion in cruises and parks.
• Streaming profitability continued to improve, with a 13% SVOD operating margin in Q3 and management remaining on track for double-digit margins in fiscal 2026; Disney also plans further Disney+/Hulu integration and expanded bundling to reduce churn and increase subscriber lifetime value.
• Disney raised its fiscal 2026 share-repurchase expectation to at least $9 billion, while maintaining approximately $24 billion of annual content spending and roughly $9 billion of fiscal 2026 Experiences capital expenditures.
• Management acknowledged ongoing international attendance softness, weaker consumer conditions in parts of Asia, competitive streaming advertising supply and pricing pressure, and mixed theatrical performance, although it said diversification across parks, streaming, sports, and IP helps offset volatility.

Walt Disney Stock Up 0.1%

Shares of NYSE DIS traded up $0.16 during mid-day trading on Friday, hitting $104.84. The company had a trading volume of 6,058,962 shares, compared to its average volume of 10,750,470. The company has a market capitalization of $182.05 billion, a PE ratio of 21.61, a price-to-earnings-growth ratio of 1.32 and a beta of 1.39. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.71 and a quick ratio of 0.62. Walt Disney has a 1-year low of $92.18 and a 1-year high of $119.78. The business’s 50-day simple moving average is $98.87 and its 200 day simple moving average is $101.89.

Analyst Ratings Changes

DIS has been the subject of several research analyst reports. Guggenheim restated a “buy” rating and set a $120.00 price target on shares of Walt Disney in a research report on Thursday. Wolfe Research set a $131.00 target price on Walt Disney in a research note on Tuesday, June 30th. Wells Fargo & Company raised their target price on Walt Disney from $125.00 to $132.00 and gave the company an “overweight” rating in a report on Thursday. JPMorgan Chase & Co. lifted their target price on Walt Disney from $139.00 to $140.00 and gave the company an “overweight” rating in a research report on Tuesday, June 30th. Finally, Truist Financial set a $115.00 price target on shares of Walt Disney in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Walt Disney has a consensus rating of “Moderate Buy” and a consensus price target of $128.61.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of DIS. Viking Global Investors LP purchased a new stake in shares of Walt Disney in the second quarter valued at about $725,219,000. Price T Rowe Associates Inc. MD boosted its holdings in Walt Disney by 62.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,876,878 shares of the entertainment giant’s stock valued at $1,578,773,000 after purchasing an additional 5,334,866 shares in the last quarter. State Street Corp increased its position in Walt Disney by 3.0% during the 3rd quarter. State Street Corp now owns 82,019,749 shares of the entertainment giant’s stock worth $9,391,261,000 after purchasing an additional 2,376,706 shares during the period. Bank of Nova Scotia raised its stake in shares of Walt Disney by 192.9% during the 4th quarter. Bank of Nova Scotia now owns 1,566,840 shares of the entertainment giant’s stock worth $178,259,000 after buying an additional 1,031,878 shares in the last quarter. Finally, AQR Capital Management LLC lifted its holdings in shares of Walt Disney by 69.0% in the 4th quarter. AQR Capital Management LLC now owns 2,282,001 shares of the entertainment giant’s stock valued at $259,623,000 after buying an additional 931,979 shares during the period. 65.71% of the stock is owned by institutional investors and hedge funds.

Key Walt Disney News

Here are the key news stories impacting Walt Disney this week:

• Positive Sentiment: Earnings beat and stronger outlook: Disney reported adjusted earnings of $2.06 per share, above the $1.86 consensus estimate, while revenue rose 6.8% year over year to $25.25 billion. Parks, streaming and the success of Toy Story 5 helped drive operating income growth. Management reaffirmed fiscal 2026 guidance, reiterated its double-digit earnings-growth target and increased planned share repurchases to at least $9 billion. Disney Q3 Earnings Call Highlights Parks and Streaming Growth
• Positive Sentiment: Analysts raise targets: Wells Fargo lifted its price target to $132, while Argus maintained a Buy rating with a $134 target. Barclays, Benchmark, Guggenheim, Rosenblatt and Needham also reiterated positive ratings or targets, suggesting analysts see meaningful upside despite DIS underperforming the broader market over the past year. Walt Disney Price Target Raised to $132 at Wells Fargo
• Positive Sentiment: Streaming momentum improves: Warner Bros. Discovery executives said the discounted Disney Bundle combining Max, Disney+ and Hulu is reducing churn and improving subscriber growth. Disney also plans to expand Disney+ into a broader fan ecosystem with games, merchandise and interactive features. Warner Bros. Discovery Says Disney Bundle Is Delivering
• Positive Sentiment: ESPN and digital reach add catalysts: ESPN’s first Super Bowl broadcast in 2027 is already attracting strong advertising demand. Separately, a TikTok content-sharing deal could increase engagement with Disney franchises and feed short-form video onto Disney+. Disney’s Big Bet on the NFL

About Walt Disney

The Walt Disney Company (NYSE: DIS), commonly known as Disney, is a diversified global entertainment and media conglomerate headquartered in Burbank, California. Founded in 1923 by Walt and Roy O. Disney, the company grew from an animation studio into a multi‑national entertainment enterprise known for iconic intellectual property and family‑oriented storytelling. Disney’s operations span film and television production, streaming services, theme parks and resorts, consumer products, and live entertainment.

On the content side, Disney produces and distributes feature films and television programming through a portfolio of studios and labels that includes Walt Disney Pictures, Pixar, Marvel Studios, Lucasfilm and 20th Century Studios, along with broadcast and cable networks such as ABC, FX and National Geographic.