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Can DIS Stock Maintain Momentum With Streaming Wins and Parks Growth?
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Key Takeaways
Disney posted 7% revenue growth and a 21% rise in total segment operating income.
Streaming income more than doubled, while parks saw 4% guest growth and higher per-capita spending.
Disney raised its buyback target to at least $9 billion and expects double-digit EPS growth in fiscal 2027.
Shares of Walt Disney Company (DIS - Free Report) are drawing renewed investor attention after the entertainment giant posted a stronger-than-expected third-quarter fiscal 2026 report, with streaming profitability and theme-park demand emerging as the twin engines behind the beat.
For the quarter ended June 27, 2026, revenues rose 7% year over year to $25.25 billion, while total segment operating income climbed 21% to $5.6 billion. Adjusted earnings per share came in at $2.06, up from $1.61 a year earlier. The Experiences segment, which houses parks, cruises and consumer products, generated record fiscal third-quarter revenues of nearly $10 billion, up 10%, with global guest counts up 4% and per-capita spending at domestic parks also rising 4%, helped by additional capacity from Disney Cruise Line's newest ships.
On the streaming side, combined Disney+ and Hulu operating income more than doubled to $712 million from $329 million a year earlier, with revenues up 11% to $5.53 billion and operating margin expanding to roughly 13%. Entertainment segment operating income overall jumped 64% to $1.68 billion, aided by Toy Story 5's box-office run past $1 billion globally.
On the content and platform front, Disney expects Toy Story 5 to arrive on Disney+ by the end of 2026, while deeper Hulu integration — including live television and add-ons in the Disney+ app — is targeted for the same timeframe. The company also struck a new content partnership with TikTok, which is set to pilot in the United States in the coming months before expanding to other markets in early 2027.
Looking ahead, management provided guidance for fourth-quarter total segment operating income of approximately $4.9 billion and reiterated expectations for full-year fiscal 2026 adjusted EPS growth of about 12%, or roughly 16% including an extra fiscal week, with double-digit adjusted EPS growth anticipated for fiscal 2027. The company also raised its fiscal 2026 share-repurchase target to at least $9 billion, up from $8 billion, aided by proceeds from the divestiture of its 50% stake in A+E Global Media.
On the parks front, Disney continues to advance its capital-light Abu Dhabi resort with partner Miral, its seventh global theme-park destination, alongside a broader multi-ship cruise expansion and new attractions planned across the Hong Kong, Tokyo and Paris parks through 2027.
How Rivals Comcast and Netflix Compare
Disney's streaming and parks momentum stands out against mixed results at peers Comcast (CMCSA - Free Report) and Netflix (NFLX - Free Report) . Comcast's NBCUniversal parks, including its Orlando properties, reported softer attendance last quarter, with executives citing weaker consumer sentiment and higher travel costs — a contrast to Disney's 4% guest growth. On streaming, Netflix remains the largest global subscription video platform by revenues and profitability, though Netflix does not operate theme parks, cruises, or consumer-products businesses comparable to Disney's Experiences segment. Comcast's Peacock service continues to post narrower streaming losses than in prior years, but has not disclosed profitability metrics matching Disney's reported entertainment streaming operating margin for the same period.
Looking ahead, Peacock's late-2026 pipeline includes new series such as Dig, Crystal Lake and The Good Daughter, alongside returning unscripted titles, with The Traitors Season 6 slated for 2027. Netflix, meanwhile, has secured an expanded first-window deal with Universal, bringing theatrical titles including The Odyssey to Netflix between late 2026 and early 2027, alongside its own stacked fall slate of original films.
Disney shares have lost 6.1% year to date, underperforming the broader Zacks Consumer Discretionary sector's 7.4% 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 14.54X compared with the Zacks Media Conglomerates industry's 15.91X, and the stock carries a Value Score of B.
Disney’s Valuation
Image Source: Zacks Investment Research
Estimates for Disney
The Zacks Consensus Estimate for Disney’s earnings for fiscal 2026 is pegged at $6.88, suggesting year-over-year growth of 16.02%.
View the Zacks #1 Rank List
Image: Bigstock
Can DIS Stock Maintain Momentum With Streaming Wins and Parks Growth?
Key Takeaways
Shares of Walt Disney Company (DIS - Free Report) are drawing renewed investor attention after the entertainment giant posted a stronger-than-expected third-quarter fiscal 2026 report, with streaming profitability and theme-park demand emerging as the twin engines behind the beat.
For the quarter ended June 27, 2026, revenues rose 7% year over year to $25.25 billion, while total segment operating income climbed 21% to $5.6 billion. Adjusted earnings per share came in at $2.06, up from $1.61 a year earlier. The Experiences segment, which houses parks, cruises and consumer products, generated record fiscal third-quarter revenues of nearly $10 billion, up 10%, with global guest counts up 4% and per-capita spending at domestic parks also rising 4%, helped by additional capacity from Disney Cruise Line's newest ships.
On the streaming side, combined Disney+ and Hulu operating income more than doubled to $712 million from $329 million a year earlier, with revenues up 11% to $5.53 billion and operating margin expanding to roughly 13%. Entertainment segment operating income overall jumped 64% to $1.68 billion, aided by Toy Story 5's box-office run past $1 billion globally.
On the content and platform front, Disney expects Toy Story 5 to arrive on Disney+ by the end of 2026, while deeper Hulu integration — including live television and add-ons in the Disney+ app — is targeted for the same timeframe. The company also struck a new content partnership with TikTok, which is set to pilot in the United States in the coming months before expanding to other markets in early 2027.
Looking ahead, management provided guidance for fourth-quarter total segment operating income of approximately $4.9 billion and reiterated expectations for full-year fiscal 2026 adjusted EPS growth of about 12%, or roughly 16% including an extra fiscal week, with double-digit adjusted EPS growth anticipated for fiscal 2027. The company also raised its fiscal 2026 share-repurchase target to at least $9 billion, up from $8 billion, aided by proceeds from the divestiture of its 50% stake in A+E Global Media.
On the parks front, Disney continues to advance its capital-light Abu Dhabi resort with partner Miral, its seventh global theme-park destination, alongside a broader multi-ship cruise expansion and new attractions planned across the Hong Kong, Tokyo and Paris parks through 2027.
How Rivals Comcast and Netflix Compare
Disney's streaming and parks momentum stands out against mixed results at peers Comcast (CMCSA - Free Report) and Netflix (NFLX - Free Report) . Comcast's NBCUniversal parks, including its Orlando properties, reported softer attendance last quarter, with executives citing weaker consumer sentiment and higher travel costs — a contrast to Disney's 4% guest growth. On streaming, Netflix remains the largest global subscription video platform by revenues and profitability, though Netflix does not operate theme parks, cruises, or consumer-products businesses comparable to Disney's Experiences segment. Comcast's Peacock service continues to post narrower streaming losses than in prior years, but has not disclosed profitability metrics matching Disney's reported entertainment streaming operating margin for the same period.
Looking ahead, Peacock's late-2026 pipeline includes new series such as Dig, Crystal Lake and The Good Daughter, alongside returning unscripted titles, with The Traitors Season 6 slated for 2027. Netflix, meanwhile, has secured an expanded first-window deal with Universal, bringing theatrical titles including The Odyssey to Netflix between late 2026 and early 2027, alongside its own stacked fall slate of original films.
DIS’ Share Price Performance, Valuation & Estimates
Disney shares have lost 6.1% year to date, underperforming the broader Zacks Consumer Discretionary sector's 7.4% 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 14.54X compared with the Zacks Media Conglomerates industry's 15.91X, and the stock carries a Value Score of B.
Disney’s Valuation
Image Source: Zacks Investment Research
Estimates for Disney
The Zacks Consensus Estimate for Disney’s earnings for fiscal 2026 is pegged at $6.88, suggesting year-over-year growth of 16.02%.
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
DIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.