- Prev. close
- $108.49
- Volume
- 2.9M
- Market cap
- $189.7B
Stock and sector context
Mediainflow- Sector comparison
- Walt Disney changed +0.68%. The 2 covered Media stocks in US averaged +0.77%, with estimated sector flow of inflow.
- Variables to watch
- Digital ad spendingSubscriber countsContent slate
- Risks to check
- An ad spending slowdown
- Rising content costs
- Sudden shifts in rates, oil and other macro variables
This compares price changes among covered stocks in the same market. It does not establish why prices moved. Variables and risks are sector reference lists.
Why a candidate
Match 30/100The match score marks how many conditions overlap on a 0 to 100 scale: the 52-week range, valuation metrics, price change and volume. It is not a probability of rising or a forecast return.
Today's read
Walt Disney scores 30 out of 100 on today's InverseOne match ranking, 16 of 30 in the US large-cap universe. It sits in the bottom 68% of its one-year price range, a neglected zone. Today's move of +0.68% came with money flowing in, alongside the Media sector. Scores are estimates built from price and volume, a starting point for research rather than a trading signal.
Data basis: 2026-10-13 close, 10-14 00:20 KST updated, For reference only, not advice
Same-sector stocks, Media
Company research
Researched 2026-09-06 15:30 KSTIn the year-ago quarter the income tax line was not a cost at all but a $2,732 million benefit.
Walt Disney closed the third quarter of fiscal 2026 on 27 June 2026 with revenue of $25.25 billion and diluted earnings per share of $1.51. Add the three segments together and operating income comes to $5.56 billion, 21 percent above the $4.58 billion of a year earlier, while earnings per share fell 48 percent from $2.92. The two figures part company near the bottom of the income statement. The year-ago quarter carried a $2,732 million income tax benefit, and this one carried an $801 million tax expense plus $900 million of restructuring and impairment charges.
Key figures
- Quarterly revenue
- $25.25bn
- Fiscal 2026 Q3
- Diluted EPS
- $1.51
- Fiscal 2026 Q3
- Adjusted EPS
- $2.06
- Fiscal 2026 Q3
- Three segments combined operating income
- $5.56bn
- Fiscal 2026 Q3
- Cash provided by operations
- $12.52bn
- Nine months of fiscal 2026
- Total borrowings
- $46.04bn
- 2026-06-27
The sign on the tax line flipped in twelve months
Income taxes for the third quarter of fiscal 2026 were an $801 million expense. In the same quarter a year earlier that line was not an expense but a $2,732 million benefit. Pre-tax income rose by $434 million, from $3,211 million to $3,645 million, and yet net income attributable to Disney halved, from $5,262 million to $2,638 million. A quarter that improved through the pre-tax line reversed below it. Net income attributable to noncontrolling interests also fell, from $681 million to $206 million.
Quarterly income taxes ($ millions, a benefit shown as positive)
What the company removed to get to adjusted EPS
The release prints a table that walks from reported to adjusted earnings per share. For the year-ago quarter the item the company took out was $1.56 per share of Hulu transaction impacts, to which it added $0.16 of acquisition amortization and $0.08 of restructuring and impairment charges, arriving at $1.61. This quarter the walk runs the other way. Reported $1.51 plus $0.41 of restructuring and impairment charges and $0.13 of acquisition amortization gives $2.06. On the company's own measure adjusted EPS rose 28 percent, from $1.61 to $2.06. On the reported measure it fell from $2.92 to $1.51. Two yardsticks read the same quarter in opposite directions.
Earnings per share (dollars)
- FY26 Q3 reported1.5
- FY26 Q3 adjusted2.1
- FY25 Q3 reported2.9
- FY25 Q3 adjusted1.6
The largest segment by revenue is not the largest by profit
Segment revenues were $11,345 million at Entertainment, $9,968 million at Experiences and $4,500 million at Sports. Operating income reorders that list. Experiences leads at $3,017 million, followed by Entertainment at $1,680 million and Sports at $858 million. Experiences, which holds the parks and the consumer products business, produces 54 percent of the three segments' combined operating income. Within Entertainment revenue, subscription and affiliate fees are the largest line at $7,545 million, ahead of advertising at $1,625 million, content sales at $1,596 million and other at $579 million. Adding the three segment revenues gives $25,813 million, more than the $25,248 million of total revenues, because intersegment activity is removed from the company total.
Fiscal 2026 third quarter segment operating income ($ millions)
- Experiences3017
- Entertainment1680
- Sports858
Inside Experiences the domestic and international parks went opposite ways
Experiences operating income grew by $501 million from the year-ago quarter. Domestic parks and experiences added $438 million, moving from $1,650 million to $2,088 million, and consumer products added $116 million, from $444 million to $560 million. International parks and experiences went the other way, from $422 million to $369 million, a fall of $53 million. All three lines grew on revenue: domestic parks from $6,403 million to $7,116 million, international parks from $1,691 million to $1,787 million, consumer products from $992 million to $1,065 million. Only the international parks grew revenue while giving up profit.
Change in Experiences operating income against the year-ago quarter ($ millions)
- Domestic parks438
- Consumer products116
- International parks-53
One segment where profit fell, and nine months of cash
Sports revenue rose from $4,308 million to $4,500 million, and its operating income fell 17 percent, from $1,037 million to $858 million. Inside that revenue, subscription and affiliate fees went from $2,899 million to $3,142 million and advertising from $1,148 million to $1,204 million, while other revenue dropped from $261 million to $154 million. Across the first nine months of the fiscal year, revenue was $76,397 million, cash provided by operations $12,515 million and free cash flow $5,735 million. Borrowings at 27 June 2026 were $46,041 million, made up of $8,627 million current and $37,414 million long term, against cash and cash equivalents of $5,185 million. The company said it is targeting at least $9 billion of share repurchases in fiscal 2026.
Segment operating income for the first nine months of fiscal 2026 ($ millions)
- Experiences8941
- Entertainment4116
- Sports1701
Fiscal 2026 third quarter segment revenues ($ millions)
- Entertainment11345
- Experiences9968
- Sports4500
Common questions
- Why did Disney's earnings per share fall against a year earlier?
- Two lines near the bottom of the income statement. The year-ago quarter carried a $2,732 million income tax benefit, while this quarter carried an $801 million tax expense, and restructuring and impairment charges grew from $185 million to $900 million. Pre-tax income actually rose by $434 million.
- Which Disney segment earns the most profit?
- Experiences, which holds the parks and consumer products. Its operating income of $3,017 million in the third quarter of fiscal 2026 is 54 percent of the three segments combined. Entertainment is larger on revenue at $11,345 million but earned $1,680 million.
- Why do reported and adjusted earnings per share differ?
- The company recalculates the figure with one-off items removed. This quarter it added $0.41 of restructuring and impairment charges and $0.13 of acquisition amortization to the reported $1.51 to reach $2.06. A year earlier it subtracted $1.56 of Hulu transaction impacts from the reported figure to reach $1.61.
Sources
- 1.Third quarter fiscal 2026 earnings release (Form 8-K, Exhibit 99.1) U.S. Securities and Exchange Commission EDGAR, as of 2026-08-05
- 2.Quarterly report for the quarter ended 27 June 2026 (Form 10-Q) U.S. Securities and Exchange Commission EDGAR, as of 2026-08-05
Reference information compiled from public material. Not investment advice; decisions and their consequences rest with the investor.
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Today's talking points
- It sits at 68 in its 52-week range.
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