Neither stock is a clear winner for every investor. Netflix’s latest cited results show faster revenue growth and a higher company-wide operating margin; Disney offers a broader mix of businesses, profitable streaming operations in its latest reported quarter, and a lower third-party forward P/E on the October 2, 2026 snapshot. The better choice depends on which business drivers and risks you think are worth the price.
What the latest results say
The companies are not like-for-like streaming investments. Netflix is centered on streaming entertainment, while Disney combines Entertainment—including streaming—with Sports and Experiences. The periods and measures below differ, so they are useful for understanding each business, not for treating their headline numbers as directly comparable.
| Measure | Netflix | Disney |
|---|---|---|
| Latest annual revenue cited | $45.183 billion for the year ended December 31, 2025, versus $39.001 billion in 2024; Netflix reported 16% year-over-year growth. | Not supplied on the same annual-period basis. For Q3 FY2026, the quarter ended June 27, 2026, revenue was $25.248 billion, up 7% year over year. |
| Latest cited streaming-led operating result | For Q2 2026, the three months ended June 30, revenue was $12.560 billion and operating income was $4.193 billion, a 33.4% company-wide operating margin. | For Q3 FY2026, Entertainment SVOD operating income was $712 million, with a 12.9% margin. This is a Disney-defined, non-GAAP streaming measure, not a company-wide margin. |
| Business mix | Streaming entertainment. | Entertainment, Sports, and Experiences. |
| Forward P/E snapshot | 19.35 at the October 2, 2026 close, per Stock Analysis. | 13.55 at the October 2, 2026 close, per Stock Analysis. |
The 2025 revenue figures and Netflix operating-cash-flow data are from Netflix, Inc.’s 2025 Form 10-K. Its filing says revenue growth reflected membership growth, price increases, and increased advertising revenue, partly offset by foreign-exchange effects. Netflix discontinued reporting membership counts during 2025 and says it focuses on revenue and operating margin instead; subscriber totals should not be treated as a regularly disclosed current company metric without a newer disclosure.
Netflix’s latest cited quarterly margin eased from 34.1% in the comparable quarter a year earlier to 33.4%. The company attributed the reduction primarily to technology and development and sales and marketing expenses growing faster than revenue. Disney’s 12.9% figure covers Entertainment SVOD alone. Disney defines that measure to include Disney+, Hulu, and Disney+ Hotstar through November 14, 2024; it excludes Hulu Live TV and Fubo virtual multichannel services. Disney cautions that its non-GAAP measures may not be comparable with similarly titled measures at other companies.
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Disney’s results extend beyond streaming
In Q3 FY2026, Disney reported the following segment revenue and segment operating income. These segments have different economics, and Disney’s totals should not be read as streaming-only performance.
| Disney segment | Revenue | Segment operating income |
|---|---|---|
| Entertainment | $11.345 billion | $1.680 billion |
| Sports | $4.500 billion | $858 million |
| Experiences | $9.968 billion | $3.017 billion |
Disney’s Q3 FY2026 release also reported $5.555 billion of total segment operating income, $4.866 billion of cash provided by operations, and $3.072 billion of free cash flow. Disney labels total segment operating income and free cash flow as non-GAAP measures and says to consider them alongside their comparable GAAP measures. Sports segment operating income declined year over year in the quarter, underscoring that the segments bring distinct execution risks as well as revenue sources.
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A broader mix can mean Disney’s results depend on more than streaming subscriptions and advertising, but diversification does not guarantee lower risk or better returns. Sports and Experiences each have their own operating exposures; a consolidated Disney result cannot be interpreted as a direct read-through to the performance of its streaming service.
Compare cash generation with one-time items in view
Netflix reported $10.149 billion of operating cash flow for 2025. Its first-half 2026 year-over-year increase in operating cash flow should not be treated as entirely recurring: Netflix’s Form 10-Q attributed much of the increase in net income and operating cash flow to a $2.8 billion Warner Bros. Discovery termination fee after the transaction ended. Netflix also disclosed higher payments for content assets in that period.
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Netflix’s 2025 Form 10-K listed $24.039 billion of content obligations for acquisition, licensing, and production. Those commitments illustrate the cash demands of a content-intensive business; they are not the same as debt. The filing lists debt and lease obligations separately.
Disney’s Q3 FY2026 cash provided by operations and free cash flow figures cover the whole company, not its streaming operation alone. Its free cash flow is non-GAAP, so compare it with care and alongside the company’s GAAP measures. A single quarter’s cash generation, particularly across companies with different business mixes and reporting periods, does not by itself establish which stock has stronger recurring cash economics.
What the valuation snapshot does—and does not—show
At the October 2, 2026 close, Stock Analysis listed Netflix at $67.06 per share, with a market capitalization of $279.23 billion and a forward P/E of 19.35. It listed Disney at $102.19 per share, a market capitalization of $176.45 billion, and a forward P/E of 13.55. These are dated third-party figures, not current quotes beyond that date.
Disney’s lower forward P/E means its share price was lower relative to the earnings estimates used for that snapshot. It does not prove Disney was undervalued or that it will outperform: forward P/E relies on projected earnings, and both the share price and estimates can change. The share prices alone also do not show which company is cheaper; per-share prices depend on the number of shares outstanding.
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Risks and questions to weigh before choosing
Netflix
- Content commitments: Its substantial content obligations make the cost and appeal of future programming important to growth and profitability.
- Competition and execution: Pricing, advertising, and audience demand all affect whether Netflix can sustain revenue growth while managing expenses.
- Foreign exchange: Netflix identified foreign-exchange effects as a partial offset to 2025 revenue growth.
- Margin pressure: Its Q2 2026 margin was below the year-earlier level as certain operating expenses grew faster than revenue.
Disney
- Several business models to assess: Streaming, Sports, and Experiences contribute to results in different ways; strengths in one segment do not remove risks in another.
- Streaming execution: The reported SVOD operation was profitable in Q3 FY2026, but its company-defined measure is not directly comparable to Netflix’s whole-company margin.
- Segment performance: The year-over-year decline in Sports segment operating income in the quarter is a reminder that Disney’s non-streaming businesses also face execution risks.
- Valuation assumptions: The lower cited forward P/E depends on projected earnings. If those estimates change, the apparent valuation difference can change too.
How to decide which stock fits your thesis
- If you prioritize recent growth and streaming-led profitability, Netflix’s reported 2025 revenue growth and Q2 2026 company-wide operating margin are relevant evidence. Test whether you believe revenue drivers can continue to outpace the costs and content commitments required to sustain the service.
- If you want exposure to businesses beyond streaming, assess Disney’s Entertainment, Sports, and Experiences segments separately. Decide whether the mix and its varied risks fit your investment thesis rather than assuming diversification automatically makes the stock safer.
- If valuation is central, treat the October 2 forward P/E figures as a dated comparison of price to estimates, then consider how much growth, profitability, and cash generation those estimates imply. Do not treat the lower multiple as a stand-alone buy signal.
- If you are comparing financial quality, align reporting periods and definitions first: Netflix’s operating margin is company-wide, Disney’s cited SVOD margin is streaming-only, Disney’s segment figures span its broader company, and the cited Disney free cash flow is non-GAAP.
For a personal decision, the key issue is not simply which company has the stronger recent metric. It is whether the price you would pay is justified by the future business performance you expect, and whether the associated risks fit your time horizon, diversification, and ability to withstand losses. The cited company results and valuation snapshot do not establish personal suitability or forecast future returns.
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