iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
Neither stock is a clear winner for every investor. Netflix’s latest cited results show faster recent revenue growth and a higher company-wide operating margin; Disney combines profitable streaming with Sports and Experiences businesses, and its forward P/E was lower in a dated October 2, 2026 snapshot. Those are different strengths, not a forecast of which stock will perform better. The choice depends on the growth, business mix, and valuation assumptions you find more persuasive.
What the latest results say
The figures below come from different reporting periods and do not make Netflix and Disney directly interchangeable. Netflix’s figures are for the calendar year or quarter shown; Disney’s are for its fiscal quarter ended June 27, 2026.
| Measure | Netflix | Disney |
|---|---|---|
| Revenue and growth | $45.183 billion for 2025, up 16% from $39.001 billion in 2024, according to Netflix’s 2025 Form 10-K. | $25.248 billion for Q3 FY2026, up 7% year over year, according to Disney’s earnings release. |
| Operating result | For Q2 2026, revenue was $12.560 billion and operating income was $4.193 billion; operating margin was 33.4%, versus 34.1% a year earlier. | For Q3 FY2026, total segment operating income was $5.555 billion, a company-defined non-GAAP measure. Entertainment SVOD operating income was $712 million, with a 12.9% margin. |
| Cash generation | Operating cash flow was $10.149 billion for 2025. Netflix’s first-half 2026 comparison is affected by a $2.8 billion Warner Bros. Discovery termination fee. | Cash provided by operations was $4.866 billion for Q3 FY2026. Disney reported $3.072 billion of free cash flow, a non-GAAP measure. |
| Business mix | Streaming-led entertainment business. | Entertainment, Sports, and Experiences, with streaming included in Entertainment. |
Netflix’s 2025 revenue growth reflected membership growth, price increases, and increased advertising revenue, partly offset by foreign-exchange effects, according to its 10-K. Netflix discontinued reporting membership counts, including average paying memberships and average monthly revenue per paying membership, during 2025; it says it focuses on revenue and operating margin instead.
Free tools Windows power users keep installed
One-click scans. No signup required.
Which company has stronger streaming profitability?
Netflix reported a 33.4% operating margin for its entire company in Q2 2026. That was lower than the 34.1% reported for the same quarter a year earlier; Netflix attributed the decrease primarily to technology and development and sales and marketing expenses growing faster than revenue.
#1 Best Overall
Disney’s 12.9% Q3 FY2026 margin applies only to Entertainment SVOD, not to the whole company. Disney defines this measure to include Disney+, Hulu, and Disney+ Hotstar through November 14, 2024; it excludes Hulu Live TV and Fubo virtual multichannel services. Disney also cautions that its company-defined non-GAAP measures may not be comparable with similarly titled measures from other companies. Comparing the two percentages as if they measure the same business would therefore be misleading.
Disney’s broader segment results help explain the distinction. For Q3 FY2026, Entertainment reported $11.345 billion of revenue and $1.680 billion of segment operating income; Sports reported $4.500 billion and $858 million; Experiences reported $9.968 billion and $3.017 billion. These segments have different operating economics and risks. Disney’s total segment operating income is not the same measure as Netflix’s company-wide operating income.
Rank #2
How much should cash flow affect the decision?
Netflix’s 2025 operating cash flow of $10.149 billion is a full-year figure. Its first-half 2026 cash-flow increase over the comparable period should not be read as wholly recurring improvement: Netflix’s Form 10-Q attributes much of the increase in net income and operating cash flow to a $2.8 billion termination fee received after the Warner Bros. Discovery transaction ended. The company also reported higher payments for content assets.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Disney reported $4.866 billion of cash provided by operations and $3.072 billion of free cash flow for Q3 FY2026. Disney labels free cash flow and total segment operating income as non-GAAP measures and says they should be considered alongside comparable GAAP measures. These are quarterly Disney figures, so they are not a like-for-like comparison with Netflix’s full-year 2025 operating cash flow.
Rank #3
What risks and business trade-offs differ?
Netflix: content investment and execution
Netflix’s 2025 Form 10-K disclosed $24.039 billion of content obligations for acquisition, licensing, and production. These commitments reflect the cost of sustaining a content-intensive service; they are not identical to debt, which Netflix lists separately from content and lease obligations. Relevant execution risks include attracting and retaining viewers, pricing, advertising growth, content costs, and foreign exchange.
Disney: more sources of revenue, more distinct exposures
Disney’s combination of Entertainment, Sports, and Experiences means its results depend on more than streaming. That broader mix can provide different revenue sources, but it does not guarantee protection from losses or weak performance. Disney’s Q3 FY2026 results showed a year-over-year decline in Sports segment operating income; Experiences and Entertainment have their own operating drivers and risks.
Rank #4
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
Disney described its stated priorities in its May 6, 2026 Q2 FY2026 shareholder letter: “We are strengthening streaming through continued investment in the creative storytelling that defines us and in product and technology innovation, while advancing ESPN’s direct-to-consumer future, and delivering on our bold growth plans at Disney Experiences.” This is the company’s account of its strategy, not evidence that its plans will succeed.
Is Disney stock cheaper than Netflix?
At the October 2, 2026 market close, Stock Analysis listed Netflix at $67.06 per share, a $279.23 billion market capitalization, and a 19.35 forward P/E. It listed Disney at $102.19 per share, a $176.45 billion market capitalization, and a 13.55 forward P/E. These are dated third-party figures, and the forward P/Es rely on earnings estimates.
Best Value
- Comes with secure packaging
- Easy to read text
- It can be a gift option
On that snapshot, Disney had the lower forward P/E. That does not by itself establish that Disney is undervalued or that Netflix is overpriced: the ratio changes with share prices and estimates, and it cannot settle how much future growth, profitability, or investment the market has priced in. Share price alone is also not a useful measure of which company is cheaper.
Quick Recap
How to decide which stock fits your view
- Favor the Netflix case if you place more weight on its recent revenue growth and high company-wide operating margin, while accepting the demands of content investment and uncertainty around future growth and margins.
- Favor the Disney case if you value its combination of streaming, Sports, and Experiences, and believe those businesses can execute while supporting the company’s future results. Its reported SVOD operation was profitable in Q3 FY2026, but that is one part of the company.
- Compare valuation cautiously. The October 2 forward P/E snapshot favored Disney on that single measure, but it depends on estimates and is not a return forecast.
- Use your own time horizon and risk tolerance. The evidence here does not establish a universal winner or whether either security is suitable for a particular investor.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
