Disney's Earnings Beat Expectations but Stock Remains Flat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 02 2026
0mins
Should l Buy DIS?
Source: Fool
- Earnings Performance: Disney's fiscal Q1 revenue rose 5% to $26 billion, slightly exceeding analysts' expectations of $25.6 billion, while adjusted EPS fell 7% to $1.63, still surpassing the $1.58 forecast, indicating the company's resilience amid challenges.
- Segment Performance: The entertainment segment saw a 7% revenue increase but a 35% drop in operating income, while the streaming business's operating profit surged 72%, yet overall profitability was hampered by high production costs, highlighting the mixed outcomes of Disney's diversified operations.
- Theme Parks Highlight: Revenue from the experiences segment, including theme parks and cruise lines, grew 6%, matching its operating income growth, making it the primary profit driver by contributing 39% of revenue and 72% of overall operating profit, indicating a strong recovery in this area.
- Future Outlook and CEO Transition: Despite Disney's forecast of double-digit EPS growth for fiscal 2026 and a $7 billion stock buyback plan, the market's muted response reflects uncertainty, compounded by the lack of formal announcements regarding the CEO transition, which adds to the company's leadership ambiguity.
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Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 102.380
Low
123.00
Averages
137.29
High
152.00
Current: 102.380
Low
123.00
Averages
137.29
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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