Disney's Streaming Business Sees Major Profit Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2026
0mins
Source: NASDAQ.COM
- Streaming Profit Surge: Disney's direct-to-consumer streaming segment, including Disney+ and Hulu, reported operating income of $1.3 billion for fiscal 2025, an impressive 828% increase from $143 million the previous year, highlighting strong financial performance that attracts investor interest.
- Future Growth Expectations: Management anticipates a 10% operating margin for this segment in fiscal 2026, implying that with a 10% revenue growth, combined operating income from Disney+ and Hulu could reach $2.7 billion, marking a significant turnaround from substantial losses just a few years ago.
- Experience Business Expansion: Disney's theme parks and cruise segment achieved a 33% operating margin in Q1 of fiscal 2026 and plans to expand its cruise fleet from eight to thirteen ships, showcasing immense potential and consistent revenue growth in its experiences division.
- Attractive Valuation: Disney shares are currently trading at a P/E ratio of 14.5, representing a 62% discount compared to Netflix, making the stock appealing despite a 50% decline in share price over the past five years, as the company's unique intellectual property and market position suggest strong investment potential over the next five years.
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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: 99.710
Low
123.00
Averages
137.29
High
152.00
Current: 99.710
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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