Disney's Experiences Generated $3 Billion in One Quarter. Here's Why the Market Is Still Pricing It as a Value Stock.

Walt Disney's (NYSE: DIS) "experiences" segment -- led by its theme parks -- reported $3 billion in operating income on nearly $10 billion in revenue in the company's most recent fiscal quarter. Yet the stock still trades at a modest forward earnings multiple, suggesting that investors don't expect much growth ahead.

That gap between results and valuation reflects a more mixed picture across Disney's business, but it could also create an opening for long-term investors.

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Disney's core business delivered a record quarter

In Disney's fiscal 2026 third quarter, which ended June 27, the experiences segment grew revenue 10% year over year, while its operating income jumped 20%. Those results reflect healthy consumer demand at the heart of Disney's entertainment empire.

Theme park admissions rose 9% year over year, lifting spending on merchandise, food, and beverages. That matters because experiences is Disney's profit engine: It generated 54% of the company's total operating income for the quarter.

The company also continues to see strength in its cruise business with the launch of two new ships -- Disney Destiny and Disney Adventure -- during the past year. These results show the Disney flywheel at work. People watch movies and Disney+ content, which shows up later in spending on park visits, cruise bookings, and merchandise sales.

Why is Disney trading like a value stock?

Even after a strong quarter for the key experiences segment, Disney shares trade at around 16 times this fiscal year's consensus earnings estimate and about 15 times fiscal 2027's estimate. Historically, its forward price-to-earnings ratio (P/E) has been closer to 20.

The current discount reflects uneven performance elsewhere across the entertainment empire. Disney is still dealing with the impact that long-term declines in cable subscribership are having on its TV networks. Moreover, content costs continue to weigh on the company's streaming operating margin, which was 13% in the quarter, compared with Netflix's 33%.

Box office performance for the live-action remake of Moana came in below the company's expectations. Even so, the entertainment segment's operating income jumped 64% year over year.

Disney is also early in its leadership transition: New CEO Josh D'Amaro took over the role in March. Investors may be waiting to see more proof of his ability to set a fruitful strategy and execute on it before they decide if they're willing to put a higher earnings multiple on the stock.

Is the stock a buy?

Overall, there may be more to like here than not. The core growth in the experiences segment shows that Disney remains one of the world's top consumer brands. During the fiscal Q3 earnings call, management noted that guests, users, and audiences all increased year over year for experiences, Disney+, and ESPN.

If that growth continues, accompanied by a gradual improvement in streaming margins, the stock could drift back toward its historical P/E range over time -- making today's discount look more like an opportunity than a warning sign.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Walt Disney. The Motley Fool has a disclosure policy.