- Disney’s adjusted earnings per share (EPS) for the fourth quarter was $1.11, surpassing the estimated $1.07 but showing a slight decline from last year’s $1.14.
- Quarterly revenue reached $22.46 billion, slightly down by 0.5% year-over-year and falling short of the expected $22.83 billion.
- Entertainment sector revenue decreased by 5.7% year-over-year to $10.21 billion, below the forecasted $10.49 billion.
- Sports sector revenue increased by 1.7% year-over-year to match the estimate of $3.98 billion.
- Experiences revenue grew by 6.4% year-over-year to $8.77 billion, slightly under the estimated $8.8 billion.
- Disney+ total subscribers rose to 131.6 million, a 3% increase quarter-over-quarter, exceeding the estimate of 130.08 million.
- Hulu saw a 15% quarter-over-quarter increase in total subscribers, totaling 64.1 million, compared to the 62.46 million estimate.
- Disney anticipates cash flow from operations to reach $19 billion in 2026, surpassing the expected $16.86 billion.
- Capital expenditures are projected at $9 billion for 2026, compared to the $7.88 billion estimate.
- The company expects double-digit adjusted EPS growth and increased entertainment operating income for fiscal year 2026, with significant growth anticipated in the latter half.
- Sports operating income is projected to grow in low-single digits, with most growth happening in the fourth quarter due to the timing of rights expenses.
- Experiences operating income is expected to achieve high-single digit growth, primarily in the second half of 2026.
- The share repurchase target has been doubled to $7 billion for 2026 compared to 2025.
The Walt Disney Co on Smartkarma
Analysts on Smartkarma provide varied insights on The Walt Disney Co. Value Investors Club highlights Disney’s strong brand recognition and content diversity, signaling growth potential amidst challenges like competition and changing preferences. Baptista Research focuses on Disney’s strategic shift towards streaming and experiences for future growth, despite TV challenges. They also discuss Disney’s bold moves in sports media, such as trading ESPN stake for NFL assets and securing streaming rights.
Baptista Research further shares investor enthusiasm post Disney’s positive Q2 earnings, with the stock surging 11% to over $102. The announcement of a new Disney theme park in Abu Dhabi adds to the optimism. Analysts assess various factors influencing Disney’s trajectory and delve into independent valuations, offering insights for stakeholders navigating the evolving entertainment landscape.
A look at The Walt Disney Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
The long-term outlook for The Walt Disney Company is positive, with strong potential for growth. With a high Smart Score of 5 in Growth, it indicates that the company is poised for expansion and development in the future. Additionally, the company has received moderate scores of 3 in both Value and Resilience, suggesting a solid foundation and the ability to weather economic challenges. These factors combined indicate a promising future for Disney in terms of capturing market opportunities and sustaining long-term success.
Despite receiving a lower score of 2 in Dividend, indicating room for improvement in this area, The Walt Disney Company’s overall outlook remains optimistic. The company’s diversified operations in media networks, studio entertainment, theme parks, consumer products, and interactive media provide a strong base for continued growth and innovation. With a solid track record in producing various forms of entertainment content, Disney is well-positioned to capitalize on evolving consumer trends and maintain its prominent position in the entertainment industry.
Summary: The Walt Disney Company is an entertainment powerhouse engaged in a wide range of activities across media networks, studio entertainment, theme parks, consumer products, and interactive media. Renowned for its production of motion pictures, television programs, musical recordings, books, and magazines, Disney’s diverse portfolio and focus on growth make it a compelling player in the entertainment sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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