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The Zacks Analyst Blog Highlights Disney, Warner Bros. Discovery and Netflix
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For Immediate Release
Chicago, IL – January 22, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Disney (DIS - Free Report) , Warner Bros. Discovery (WBD - Free Report) and Netflix (NFLX - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Is Disney's Stronger Cash-Flow Generation Supporting Higher Payouts?
Disney’s strengthening cash flow generation is laying a solid foundation for higher and more consistent shareholder payouts over time.
Disney delivered strong cash flow momentum in fiscal 2025, with cash from operations up about 30% year over year and free cash flow growing roughly 18%. This improvement supported a 50% increase in the annual dividend to $1.50 per share and a doubling of the share repurchase authorization to $7 billion for fiscal 2026, signaling confidence in the sustainability of cash generation.
A key driver of this improvement has been the sharp turnaround in Disney’s Direct-to-Consumer business. In fiscal 2025, streaming generated $1.3 billion in operating income, marking a significant reversal from the multibillion-dollar losses recorded just three years ago. This shift has materially reduced cash burn and strengthened overall free cash flow durability. In parallel, the Experiences segment continues to provide a stable, high-margin cash flow, generating a record $10 billion in operating income to support both shareholder returns and reinvestment.
Looking ahead, management has indicated that the most capital-intensive phase of investment is easing. As Disney's heavy investment cycle moderates, improvements in free cash flow visibility are becoming more apparent. With underlying operating cash flow growth in the high-20% range and guidance of approximately $19 billion for fiscal 2026, the company appears well positioned to sustain higher dividends and accelerated buybacks supported by durable cash generation.
Comparing Cash Flow Strength: Disney vs. Rivals
Warner Bros. Discovery has strengthened its cash flow through tighter cost control, stronger studio results and a streaming turnaround. In the third quarter of 2025, WBD produced $701 million in free cash flow even after major separation costs, backed by rising Streaming and Studios EBITDA and steady linear networks. Competitive advantages include its deep content library, improving streaming profits and lower debt. Compared with WBD, Disney still offers broader diversification and longer-term cash flow stability.
Netflix demonstrates clear cash flow superiority through its pure-play streaming model. In the third quarter of 2025, Netflix generated $2.7 billion in free cash flow and expects about $9 billion for full-year 2025. NFLX benefits from high margins, global scale and rising ad revenues, supporting steady cash generation. Compared with NFLX, Disney has broader businesses but faces more volatile and capital-intensive cash flows.
Disney shares have fallen 2.5% in the past three months compared with the Zacks Consumer Discretionary sector and the Zacks Media Conglomerates industry’s decline of 5.4% and 7.3%, respectively.
From a valuation standpoint, DIS stock is currently trading at a forward 12-month price/earnings ratio of 16.19X compared with the industry’s 17.76X. DIS has a Value Score of B.
According to the Zacks Consensus Estimate, Disney’s earnings are projected at $6.58 per share for fiscal 2026 and $7.33 for fiscal 2027. Estimates for fiscal 2026 earnings are down by a couple of cents over the past 30 days, while fiscal 2027 projections have declined by 4 cents.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Disney, Warner Bros. Discovery and Netflix
For Immediate Release
Chicago, IL – January 22, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Disney (DIS - Free Report) , Warner Bros. Discovery (WBD - Free Report) and Netflix (NFLX - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Is Disney's Stronger Cash-Flow Generation Supporting Higher Payouts?
Disney’s strengthening cash flow generation is laying a solid foundation for higher and more consistent shareholder payouts over time.
Disney delivered strong cash flow momentum in fiscal 2025, with cash from operations up about 30% year over year and free cash flow growing roughly 18%. This improvement supported a 50% increase in the annual dividend to $1.50 per share and a doubling of the share repurchase authorization to $7 billion for fiscal 2026, signaling confidence in the sustainability of cash generation.
A key driver of this improvement has been the sharp turnaround in Disney’s Direct-to-Consumer business. In fiscal 2025, streaming generated $1.3 billion in operating income, marking a significant reversal from the multibillion-dollar losses recorded just three years ago. This shift has materially reduced cash burn and strengthened overall free cash flow durability. In parallel, the Experiences segment continues to provide a stable, high-margin cash flow, generating a record $10 billion in operating income to support both shareholder returns and reinvestment.
Looking ahead, management has indicated that the most capital-intensive phase of investment is easing. As Disney's heavy investment cycle moderates, improvements in free cash flow visibility are becoming more apparent. With underlying operating cash flow growth in the high-20% range and guidance of approximately $19 billion for fiscal 2026, the company appears well positioned to sustain higher dividends and accelerated buybacks supported by durable cash generation.
Comparing Cash Flow Strength: Disney vs. Rivals
Warner Bros. Discovery has strengthened its cash flow through tighter cost control, stronger studio results and a streaming turnaround. In the third quarter of 2025, WBD produced $701 million in free cash flow even after major separation costs, backed by rising Streaming and Studios EBITDA and steady linear networks. Competitive advantages include its deep content library, improving streaming profits and lower debt. Compared with WBD, Disney still offers broader diversification and longer-term cash flow stability.
Netflix demonstrates clear cash flow superiority through its pure-play streaming model. In the third quarter of 2025, Netflix generated $2.7 billion in free cash flow and expects about $9 billion for full-year 2025. NFLX benefits from high margins, global scale and rising ad revenues, supporting steady cash generation. Compared with NFLX, Disney has broader businesses but faces more volatile and capital-intensive cash flows.
DIS’ Share Price Performance, Valuation & Estimates
Disney shares have fallen 2.5% in the past three months compared with the Zacks Consumer Discretionary sector and the Zacks Media Conglomerates industry’s decline of 5.4% and 7.3%, respectively.
From a valuation standpoint, DIS stock is currently trading at a forward 12-month price/earnings ratio of 16.19X compared with the industry’s 17.76X. DIS has a Value Score of B.
According to the Zacks Consensus Estimate, Disney’s earnings are projected at $6.58 per share for fiscal 2026 and $7.33 for fiscal 2027. Estimates for fiscal 2026 earnings are down by a couple of cents over the past 30 days, while fiscal 2027 projections have declined by 4 cents.
DIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.