Walt Disney (DIS) has just posted Q2 2026 results with revenue of US$25.2b, basic EPS of US$1.27 and net income excluding extra items of US$2.25b. The company has seen quarterly revenue move from US$23.6b in Q2 2025 to US$25.2b in Q2 2026, while basic EPS shifted from US$1.81 to US$1.27 over the same period. This gives investors a clear look at how top line and per share earnings have tracked across the year. With trailing 12 month net profit margins higher than a year ago and earnings growth over that period, this set of numbers puts profitability and efficiency at the center of the latest earnings conversation.

See our full analysis for Walt Disney.

With the headline figures on the table, the next step is to weigh these results against the most common market narratives around Disney to see which views are supported by the data and which are put under pressure.

11.5% net margin reshapes profit story

• Over the last 12 months Disney generated US$97.3b of revenue with net income excluding extra items of about US$11.2b, which works out to an 11.5% net profit margin compared with 9.4% a year earlier.
• Consensus narrative highlights investments in parks, cruises and refreshed intellectual property as key profit drivers, yet the 11.5% trailing margin sits alongside forecasts that assume margins ease to 11.9% over the next few years. This raises questions about how far experiences and content can offset higher labor, content and expansion costs.
  • Experiences and cruise expansion is cited as a growth engine, and the move from 9.4% to 11.5% net margin over the last year shows recent profitability has held up while those investments have been underway.
  • At the same time, analysts expect earnings to rise from about US$12.3b to US$13.2b by around 2029, which is slower than the past five year earnings growth rate of 46% per year, so the stronger recent margin profile is being paired with more cautious long term expectations.

26.5% earnings growth vs 6.45% forecasts

• Earnings grew 26.5% over the past year, while analysts in the data set forecast earnings growth of about 6.45% per year and revenue growth of about 4.4% per year, both below the US market forecasts of 16.4% and 11.4% respectively.
• Bulls point to long term earnings growth of 46% per year over five years plus ongoing investment in streaming, sports and global parks expansion, but the move from 26.5% trailing growth to 6.45% forecast growth suggests the bullish view depends on the business doing better than the current consensus path.
  • The consensus narrative cites expanded sports rights and unified streaming apps as future monetization levers, yet current forecasts still sit below wider market growth expectations, which is a more restrained backdrop than the bullish storyline implies.
  • With earnings per share on a trailing basis at US$6.28 and analysts expecting US$7.74 by about 2029, the step up in EPS is meaningful but not close to the historic 46% annual earnings growth rate that bulls often reference.

On those growth numbers, if you want to see how the optimistic view stacks up against detailed projections and segment drivers, it is worth reading the full bull case narrative in context 🐂 Walt Disney Bull Case.

P/E of 17.1x and DCF fair value tension

• Disney trades on a trailing P/E of 17.1x, which is below the US market at 19.3x and the US Entertainment industry at 27.8x, while the DCF fair value in the dataset is US$105.68 versus the current share price of US$108.06 and the single analyst price target reference of US$128.70.
• Bears focus on content and capital spending risks plus slower forecast growth, and that cautious view lines up with the DCF fair value sitting slightly below the current price even though the P/E is lower than peers and the analyst target is higher than US$108.06.
  • Critics highlight that heavy spending on sports rights, parks and cruises could pressure future margins, which is one reason a cash flow model can land below the share price despite the 11.5% trailing net margin and 26.5% earnings growth.
  • The gap between the 17.1x P/E and the implied 21.8x multiple required to reach the US$128.70 price target shows how much multiple expansion bears would argue needs to occur if earnings only grow at the 6.45% rate currently forecast.

If you are weighing those valuation tensions, looking at a clear bear case can help you stress test the downside arguments before you decide how this fits into your own portfolio view 🐻 Walt Disney Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Walt Disney on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

After weighing both the optimism and the caution in this earnings story, it makes sense to look at the underlying data yourself and move quickly while the market is still processing the details. Then round out your view by checking the 4 key rewards.

See What Else Is Out There

Disney combines a lower 17.1x P/E and slower forecast earnings growth with pressure from heavy content and capital spending, as well as cautious margin expectations.

If that mix of slower projected growth and spending risk leaves you wanting a better balance between price and quality, it may be worth checking stocks in the 44 high quality undervalued stocks to see alternatives that may align more closely with your return expectations.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.