Walt Disney's experiences segment, led by its theme parks, generated $3 billion in operating income on nearly $10 billion in revenue in the fiscal 2026 third quarter, yet the stock still trades at a modest forward earnings multiple. The segment's revenue grew 10% year over year and operating income jumped 20%, with theme park admissions up 9%. Experiences is Disney's profit engine, contributing 54% of total operating income. Despite this strength, Disney shares trade at about 16 times this fiscal year's consensus earnings estimate, below its historical forward P/E of around 20, due to declines in cable TV, streaming margin pressure, and a recent leadership transition to CEO Josh D'Amaro. Management noted growth in guests, users, and audiences across experiences, Disney+, and ESPN, suggesting potential for the stock to return to its historical valuation.
Walt Disney CompanyExperiences segment revenue and operating income grew strongly, with theme park admissions up 9%.
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