The Walt Disney Co

The Walt Disney Company (DIS) was a top five detractor during the quarter despite solid 3Q25 results. Revenue of $23.65 billion modestly missed consensus, but segment operating income of $4.6 billion and EPS of $1.61 were ahead of forecasts as strength in Sports, Experiences, and Direct-to-Consumer (DTC) more than offset softness in Linear Networks and Content Sales & Licensing. Management raised full-year EPS guidance to $5.85, driven by an improved DTC EBIT outlook of $1.3 billion and stronger expected Experiences growth at 8% year-over-year. We continue to view Disney as a high-quality EPS compounder with multiple levers for sustained growth.

The Walt Disney Company's fiscal Q3 results showed continued progress in its transformation, with total revenue increasing 2% year-over-year to $23.7 billion and segment operating income climbing 8% to $4.6 billion. The free-cash-flow turnaround has been remarkable, rising from approximately $8.4 billion to $11.5 billion. The upcoming launch of an ESPN direct-to-consumer service and the integration of Hulu into Disney+ highlight management's focus on monetizing world-class content. We view the valuation as compelling and expect further growth in revenue and free cash flow as streaming scales.

The Walt Disney Company (DIS) was mentioned as one of the stocks that experienced a decline of more than 10% in the quarter, reflecting wider economic concerns. Despite this decline, it was noted that DIS met or beat earnings expectations for the fourth quarter, which aligns with a trend observed across most of the portfolio. This performance is contrasted with the broader market, which is experiencing accelerating negative earnings revisions. The commentary highlights the stability and predictability of the companies in which Coho invests, suggesting a focus on long-term performance amidst current challenges.

The Walt Disney Company (DIS) was among the stocks that experienced a decline of more than 10% in the quarter, reflecting wider economic concerns. Despite this, DIS met or beat earnings expectations for the fourth quarter, which aligns with the overall performance of the portfolio where a healthy portion saw forward earnings expectations rise. This indicates a level of stability and predictability in the company, contributing to the manager's overall positive view on the portfolio's performance amidst challenging market conditions.

The Walt Disney Company (DIS) was mentioned as one of the stocks that experienced a decline of more than 10% in the quarter, reflecting wider economic concerns. Despite this, it met or beat earnings expectations for the fourth quarter, which aligns with the overall performance of the portfolio where a healthy portion saw forward earnings expectations rise. This indicates a level of stability and predictability in DIS's earnings amidst a challenging economic environment.

Disney (DIS) also underperformed both the market and the sector as expectations for its economically sensitive parks business decline, although the company’s underlying profitability has improved.

Disney (DIS) also underperformed both the market and the sector as expectations for its economically sensitive parks business decline, although the company’s underlying profitability has improved.