- Earnings Per Share (EPS) of $1.63, beating the estimated $1.57.
- Revenue reached approximately $25.98 billion, surpassing the estimated $25.70 billion.
- Despite positive financial results, Disney’s stock declined due to softer-than-expected guidance for the fiscal second quarter.
The Walt Disney Company (NYSE:DIS), a global entertainment powerhouse known for its theme parks, movies, and streaming services, reported impressive financial results on February 2, 2026. Disney announced an Earnings Per Share (EPS) of $1.63, exceeding the forecasted $1.57, and a revenue of approximately $25.98 billion, surpassing the expected $25.70 billion.
Despite these positive outcomes, Disney’s stock experienced a decline of over 5% following the earnings report. This downturn was attributed to softer-than-expected guidance for the upcoming fiscal second quarter, with management pointing to weaker international visitation to U.S. parks and a significant decrease in Entertainment operating profit, affected by hefty marketing expenses for holiday releases.
However, Disney’s parks and experiences segment continues to flourish, and its movie business is on the rebound. The company’s streaming revenue and operating income have shown growth, indicating a promising future for profitability. This suggests that investors might be underestimating the streaming business’s potential, which could see substantial profitability if operating margins improve in the forthcoming years.
The company’s financial metrics offer further insights into its performance. The price-to-earnings (P/E) ratio stands at approximately 15.19, reflecting the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio is about 1.97, indicating the company’s market value relative to its revenue. Additionally, the enterprise value to sales ratio is around 2.39.
Disney’s enterprise value to operating cash flow ratio is approximately 12.47, providing insight into the company’s valuation in relation to its cash flow from operations. The earnings yield is about 6.58%, offering a perspective on the return on investment for shareholders. The debt-to-equity ratio is 0.41, indicating the proportion of debt used to finance the company’s assets relative to shareholders’ equity.
