Is DIS a good stock to buy now? We came across a bullish thesis on The Walt Disney Company on Investomine’s Substack. In this article, we will summarize the bulls’ thesis on DIS. The Walt Disney Company’s share was trading at $101.66 as of March 9th. DIS’s trailing and forward P/E were 14.95 and 15.29 respectively according to Yahoo Finance.
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The Walt Disney Company operates as an entertainment company in Americas, Europe, and the Asia Pacific. DIS reported a mixed but strategically significant Q1 FY 2026, highlighting both progress and near-term challenges in its ongoing transformation.
Revenue grew 5% year-over-year to $26.0 billion, supported by strong performance across Experiences, Entertainment, and Streaming, but profitability declined due to elevated costs. The Entertainment segment saw revenue rise 7% to $11.6 billion, yet operating income fell 35% to $1.1 billion, pressured by higher programming, production, marketing, and technology expenses.
Streaming, however, emerged as a standout, with SVOD revenue up 11% to $5.35 billion and operating income surging 72% to $450 million, signaling that Disney’s streaming business has passed breakeven and is now a meaningful contributor to profitability. Sports revenue grew modestly to $4.9 billion, but operating income fell 23% to $191 million, reflecting higher rights costs and a temporary YouTube TV suspension.
Experiences proved resilient, delivering record revenue of $10.0 billion and operating income of $3.3 billion, driven by higher attendance, per capita spending, and cruise line expansion, now accounting for over 70% of segment operating income. Near-term free cash flow was negative $2.3 billion due to timing effects and heavy capital expenditures, but management reaffirmed $19 billion in operating cash flow for FY 2026 and plans $7 billion in share repurchases.
Disney’s long-term outlook is constructive: the streaming business is profitable, Experiences remain a durable earnings engine, and management expects margins and earnings growth to accelerate in H2 2026. With cost pressures normalizing and strategic investments supporting its moat, Disney presents a compelling opportunity for investors seeking brand durability, cash flow growth, and exposure to a recovering entertainment and streaming platform, making the stock attractive for accumulation.
Previously, we covered a bullish thesis on The Walt Disney Company (DIS) by Investing Intel in May 2025, which highlighted profitable streaming momentum, global expansion, and upgraded guidance. DIS’s stock price has depreciated by approximately 7.34% since our coverage, reflecting caution around near-term growth drivers across its streaming, media networks, and parks segments.. Investomine shares a similar view but emphasizes Q1 FY 2026 results, focusing on strong Experiences performance, streaming profitability, and near-term cost pressures.
The Walt Disney Company is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 113 hedge fund portfolios held DIS at the end of the fourth quarter which was 107 in the previous quarter. While we acknowledge the risk and potential of DIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DIS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
