The Walt Disney Company (DIS) is set to release its fourth-quarter fiscal 2026 earnings on November 17. Analysts expect revenues of $25.26 billion, a 12.43% increase from the same period last year. However, earnings estimates have slightly decreased by a penny to $1.67 per share over the past month, still reflecting a 50.45% year-over-year growth.
Disney anticipates total segment operating income of approximately $4.9 billion for the quarter, including the benefit of an extra week. The company has consistently beaten earnings estimates over the past four quarters, with an average surprise of 6.63%. Key factors influencing the upcoming results include the success of Toy Story 5, which crossed the billion-dollar mark globally, and the streaming debut of Avatar: Fire and Ash on Disney+ in late June. However, challenges such as higher programming costs in the Sports segment and macroeconomic uncertainty may temper growth.
Despite these challenges, Disney's direct-to-consumer business has shown strong performance, achieving its first double-digit Entertainment SVOD operating margin. Management remains confident in maintaining at least a 10% margin for the full year. Investors are advised to stay the course given the durable SVOD margin trajectory and healthy content pipeline, while those considering new positions might benefit from waiting for post-earnings clarity.
According to the Zacks model, Disney has an Earnings ESP of +5.93% and a Zacks Rank #3, indicating a balanced outlook rather than a decisively bullish one. Other companies with favorable earnings setups include Hewlett Packard (HPE), Analog Devices (ADI), and Broadcom (AVGO), each with varying Earnings ESPs and Zacks Ranks.