From Morningstar: 2025-05-13 04:33:00

Walt Disney’s fiscal second quarter showed revenue and operating income growth of 6% year over year, with particularly strong results domestically. Streaming is becoming more profitable, and the company remains optimistic about a stronger second half. Concerns about economic slowdown have not materialized yet, and Disney’s outlook remains positive.

Disney’s domestic parks have not seen much impact from reduced foreign tourism, with second-half bookings on the rise. The company expects experiences operating income to grow by 6%-8% for the full year. In media, advertising demand for linear and streaming content is robust, especially for live sports.

Despite a recent stock increase, Morningstar believes Disney is undervalued. The company’s wide moat rating is supported by its strong franchises and characters. Disney’s deal to bring a park to Abu Dhabi with Miral will contribute to its revenue through service fees and royalties, without requiring any capital investment.

The author or authors of the analysis do not own shares in any securities mentioned in the article. Morningstar’s editorial policies ensure transparency and objectivity in its analysis of companies like Walt Disney.



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