DIS · Q3 FY2026
Walt Disney Co Q3 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $25.248B | $23.650B (yr ago) | Beat |
| EPS | $1.51 | $2.92 (yr ago) | Miss |
| Free Cash Flow | $3.072B | $1.889B (yr ago) | Beat |
| Gross Margin | Not meaningful | Not meaningful (yr ago) | Miss |
| Operating Margin | 14.4% pre-tax margin | 13.6% pre-tax margin (yr ago) | Beat |
What changed
Revenue increased 6.8%, pre-tax income rose 13.5% and free cash flow advanced 62.6%, while total segment operating income grew 21.4%. GAAP EPS fell 48.3% because the prior-year quarter included a large non-cash tax benefit and the current quarter included an $812M A+E impairment; adjusted EPS increased 28.0%.
Impact on the investment thesis
With no prior SageNoodle fair value, we establish a $122.50 base-case value based on assumed FY2027 normalized EPS of $5.57 and a 22.0x multiple. The quarter supports that valuation through stronger streaming profitability, Experiences growth and reiterated guidance, although Sports costs and soft advertising prevent a higher multiple.