Disney Experiences Shines Bright: Will Global Growth Unlock More Value?

Core Insights - Disney's Experiences segment showed strong performance in Q3 2025, generating over $9 billion in revenues, an 8% increase year over year, with operating income rising to $2.5 billion due to higher guest spending at theme parks and resorts [1][9] - The company is focusing on global expansion, with the upcoming Disneyland Abu Dhabi and two new cruise ships set to launch, enhancing its market presence [3][9] Revenue and Growth - The Experiences segment is projected to grow 5% year over year, reaching $35.9 billion in 2025, indicating long-term growth potential [4] - Fiscal Q4 2025 bookings are expected to rise by 6%, suggesting sustained momentum for the Experiences segment [4] Competitive Landscape - Comcast is intensifying global expansion with its $7 billion Epic Universe in Orlando, which includes popular IPs, positioning itself as a strong competitor to Disney [5] - Netflix is outperforming Disney in the streaming sector, reporting 24.1% revenue growth in APAC, with significant investments in local content [6] Stock Performance and Valuation - Disney's shares have increased by 5.4% year-to-date, underperforming the Zacks Consumer Discretionary sector and Media Conglomerates industry [7] - The stock is trading at a forward Price/Earnings ratio of 18.35X, lower than the industry's 20.19X, indicating a potential value opportunity [10] Earnings Estimates - The Zacks Consensus Estimate for Disney's fiscal 2025 and 2026 earnings is $5.86 and $6.49 per share, reflecting year-over-year growth of 17.91% for 2025 and 10.69% for 2026 [12]