DIS
The Walt Disney Company
Communication Services · Entertainment · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The dramatic bottom-line expansion — net income up +149.5% and EPS up +151.8% in FY2025 — combined with solid operating margins of 18.6% drove strong growth and profitability scores.
- A perfect financial health score was supported by the conservative debt-to-equity ratio of 0.38 and the scale of the $197.5 billion asset base, anchoring overall composite performance.
- The reinstated and growing dividend, with a low 14.5% payout ratio, earned a strong dividend score and justified the Dividend Candidate label.
Why Not Higher
- Revenue growth of only +3.4% in FY2025 and a moderate return on assets of 6.3% tempered the growth and profitability scores, preventing a top-tier composite result.
- The absence of any macro theme assignment contributed zero thematic score points, and quarterly net income volatility limited the momentum score, collectively capping the total below a higher tier.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $91,361,000,000 to FY2025's $94,425,000,000, a gain of +3.4%, while net income surged +149.5% from FY2024's $4,972,000,000 to FY2025's $12,404,000,000, and diluted EPS rose +151.8% from FY2024's $2.72 to FY2025's $6.85.
The model rewarded the dramatic bottom-line expansion in FY2025, though the relatively modest top-line growth of +3.4% likely tempered the score from a perfect mark.
In FY2025, Disney posted an operating margin of 18.6%, a net margin of 13.1%, and a return on assets of 6.3%.
The model recognized solid operating and net margins, but the moderate return on assets of 6.3% in FY2025 against a very large asset base likely constrained the score below the top tier.
In FY2025, Disney carried a debt-to-equity ratio of 0.38 and total assets of $197,514,000,000, though the interest coverage ratio as calculated was -9.7 in FY2025.
The model awarded a perfect score, likely driven by the conservative debt-to-equity ratio of 0.38 in FY2025 and the scale of the asset base; the negative interest coverage figure may reflect a specific accounting treatment in the filing data rather than an inability to service debt.
Over the last four reported quarters, revenue ranged from $22,464,000,000 in 2025Q4 to $25,981,000,000 in 2026Q1, with 2026Q2 at $25,168,000,000, showing a dip after the Q1 peak. Operating income was notably stable across 2025Q4 through 2026Q2, moving from $3,480,000,000 to $4,600,000,000 and then $4,603,000,000, while net income was volatile, peaking at $5,262,000,000 in 2025Q3 before settling to $2,247,000,000 in 2026Q2.
The model appears to have rewarded the stability in operating income and the generally elevated revenue run-rate, while the sharp net income volatility and slight revenue softening from 2026Q1 to 2026Q2 likely prevented a higher score.
Disney's dividends per share rose from $0.30 in FY2024 to $0.50 in FY2025, and the dividend payout ratio in FY2025 stood at 14.5%.
The model rewarded the resumption and growth of the dividend, while the low payout ratio of 14.5% in FY2025 signals ample earnings coverage and room for future increases, though the still-modest absolute dividend level likely kept the score from reaching the maximum.
Disney is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means no thematic tailwind contributed to the score under the current methodology; this is a neutral classification rather than a reflection of the company's business quality.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Disney posted solid FY2025 results, with revenue rising +3.4% to $94.4 billion and net income surging +149.5% to $12.4 billion, driving diluted EPS up +151.8% to $6.85. Profitability metrics were healthy, with an operating margin of 18.6% and a net margin of 13.1%, supported by a conservative balance sheet carrying a debt-to-equity ratio of just 0.38 against $197.5 billion in total assets. The dividend was reinstated and grown, with dividends per share rising from $0.30 to $0.50 and a payout ratio of only 14.5%, leaving substantial room for future increases. The composite score of 69.7/100 reflects these strengths alongside modest top-line growth, net income volatility in recent quarters, and the absence of a thematic tailwind.
Plain English
Disney had a great year on the bottom line — profits more than doubled — and it restarted and grew its dividend, all while keeping debt levels low, though revenue only grew modestly and quarterly profits have been a bit uneven lately.
Bull Case vs. Bear Case
Bull Case
- Net income nearly tripled in FY2025, rising +149.5% to $12.4 billion, with diluted EPS jumping from $2.72 to $6.85, demonstrating powerful bottom-line leverage on modest revenue growth.
- The balance sheet is conservatively positioned with a debt-to-equity ratio of 0.38 and a massive $197.5 billion asset base, providing financial flexibility and stability.
- The dividend payout ratio of just 14.5% in FY2025, alongside dividends per share growing from $0.30 to $0.50, signals strong earnings coverage and meaningful capacity for future dividend increases.
Bear Case
- Top-line growth was relatively modest at +3.4% in FY2025, suggesting limited revenue acceleration that could constrain future earnings growth if margin expansion plateaus.
- Quarterly net income has been highly volatile, peaking at $5.26 billion in 2025Q3 before falling to $1.31 billion in 2025Q4 and settling at $2.25 billion in 2026Q2, making earnings predictability difficult.
- Disney is not assigned to any of the 24 tracked macro themes, meaning no thematic tailwind contributes to its score, leaving it without a model-recognized structural growth catalyst.
What Could Change the Picture
Bullish Triggers
- A sustained acceleration in quarterly revenue beyond the $25.9 billion 2026Q1 peak, combined with stabilization of net income at higher levels, would signal that the FY2025 earnings surge is durable rather than one-time.
- A meaningful increase in the dividend payout ratio above the current 14.5% level would reinforce the Dividend Candidate label and demonstrate management's confidence in earnings sustainability.
Bearish Triggers
- If operating income, which has been stable between $3.5 billion and $4.6 billion per quarter, begins to decline, it would undermine the thesis that FY2025's margin expansion is structural.
- A reversal of the debt-to-equity ratio rising significantly above 0.38 would erode the financial health advantage that currently anchors the investment case.
Risk Profile
Low RiskDisney's risk profile is rated Low, anchored by a conservative debt-to-equity ratio of 0.38 and a $197.5 billion asset base; however, the sharp volatility in quarterly net income — ranging from $5.26 billion in 2025Q3 to $1.31 billion in 2025Q4 — introduces some uncertainty around near-term earnings consistency.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.