---
title: "Is The Walt Disney Stock Halal?"
canonical: https://www.halalwallet.ca/is-it-halal/the-walt-disney-stock
publisher: HalalWallet
license: CC BY 4.0
verdict: conditional
verdict_label: Conditional
entity_type: stock
ticker: DIS
exchange: NYSE
last_reviewed: 2026-06-14
data_as_of: 2026-03-28
standards_disagree: false
---
# Is The Walt Disney Stock Halal?

**Verdict: Conditional** (Permissible with conditions)

The Walt Disney Company (DIS) passes the screens we can compute (data as of 2026-03-28) — interest-bearing debt / market cap 27.2%, cash + interest-bearing securities / market cap 3.3%, impermissible income / total revenue 0.3% — but one screen requires case-by-case judgment. It is not held by Shariah-screened ETFs SPUS or HLAL.

> HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.

## How we read the evidence

Disney is a case where Muslim investors genuinely disagree, and the disagreement is about the business itself, not just the numbers. Of its $94.4 billion in fiscal 2025 revenue, the Entertainment segment ($42.5 billion) is built on producing and distributing films, television, and streaming content, and the Sports segment ($17.7 billion) is largely ESPN. The Experiences segment ($36.2 billion) is theme parks, resorts, a cruise line, and consumer products. Parks and cruises are closer to ordinary hospitality, but they serve alcohol, and the content businesses are what most screeners scrutinize.

Many Shariah stock screeners fail Disney at the business-activity stage because a large share of its revenue comes from entertainment media, a category these methodologies treat as impermissible or heavily restricted, independent of any financial ratio. Others weigh the Experiences segment favorably and view the content concern as a matter for the investor's conscience and purification rather than an automatic exclusion. There is no single agreed answer; this is a real difference of scholarly and methodological opinion, and an honest brief has to present it as such rather than declare a verdict.

Consistent with the stricter reading, Disney is in the S&P 500 yet is held by neither SPUS (as of June 11, 2026) nor HLAL (as of February 28, 2026). Both the entertainment-industry screen and Disney's substantial leverage are plausible reasons, but neither fund publishes a stock-level explanation, so the precise cause cannot be confirmed. A Muslim investor considering Disney should recognize that the major US Shariah funds currently exclude it, that screeners commonly fail it on content, and that anyone who concludes otherwise is taking a minority position that still calls for purification of impermissible income.

## Business activity screen

Result: Pass

The Walt Disney Company is a diversified entertainment company operating in three segments. Per its fiscal 2025 10-K (year ended September 27, 2025), total revenues were $94,425 million: Entertainment $42,466M (film, television, and direct-to-consumer streaming including Disney+ and Hulu), Sports $17,672M (primarily ESPN), and Experiences $36,156M (theme parks, resorts, cruise line, and consumer products), net of $1,869M intersegment eliminations.

Disney is one of the names where the business-activity screen, not just financial ratios, is contested. The Entertainment segment ($42.5 billion) produces and distributes films, television, and streaming content that includes material many scholars consider impermissible (music, depictions, and adult or morally objectionable themes), and the Sports segment ($17.7 billion, mainly ESPN) carries gambling-adjacent advertising and sportsbook integrations. The Experiences segment includes theme parks and a cruise line that serve alcohol. Disney does not separately disclose alcohol revenue, and the contested 'content' question is qualitative rather than a disclosed dollar figure. Disney also carries substantial debt and earns/pays interest. Disney is an S&P 500 constituent but is absent from SPUS (2026-06-11) and HLAL (2026-02-28); for media-content companies, both the entertainment industry screen and leverage are plausible causes, but the funds do not publish per-stock reasons.

## Financial ratio screen (AAOIFI)

Data as of: 2026-03-28

| Screen | Value | Limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 27.2% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 3.3% | < 30% | Pass |
| Impermissible income / total revenue | 0.3% | < 5% | Pass |

Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology

## How it screens across Shariah standards

All three mainstream bases below reach the same conclusion for this company.

| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 27.2% | 3.3% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah threshold | 27.2% | 3.3% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basis | 23.1% | 2.8% | < 33.33% of total assets | Pass |

HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-28) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded); the < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen.

## Conditions

Our computed AAOIFI financial-ratio screen passes on the latest filing data, but both major U.S. Shariah-screened ETFs — SPUS (S&P Shariah methodology) and HLAL (FTSE Shariah methodology) — exclude The Walt Disney Company from their holdings as of our June 2026 check, even though it is in their parent indices. Professional screens apply filing-level business-activity analysis (alcohol, pork, tobacco, or media revenue share) and different ratio bases that an automated ratio screen cannot replicate. That divergence usually signals an impermissible-revenue question. Treat this as unresolved until the segment revenue in the latest annual filing is verified line by line.

## Scholars' and screeners' positions

- **SP Funds S&P 500 Sharia ETF (SPUS)**: Not held in SPUS as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome. ([source](https://www.sp-funds.com/spus/))
- **Wahed FTSE USA Shariah ETF (HLAL)**: Not held in HLAL as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome. ([source](https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm))

## Sources

- DIS latest quarterly filing (balance sheet 2026-03-28) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=The%20Walt%20Disney%20Company&type=10-Q)
- AAOIFI Shariah Standards (https://aaoifi.com)
- Disney Q4/Full-Year fiscal 2025 earnings (SEC EDGAR, 8-K exhibit) (https://www.sec.gov/Archives/edgar/data/1744489/000174448925000154/fy2025_q4xprxex991.htm)
- Disney FY2025 10-K (SEC EDGAR) (https://www.sec.gov/Archives/edgar/data/1744489/000174448925000155/dis-20250927.htm)
- SPUS holdings (SP Funds) (https://www.sp-funds.com/spus/)
- HLAL Schedule of Investments 2026-02-28 (SEC EDGAR) (https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm)

## Frequently asked questions

### Is The Walt Disney Company (DIS) stock halal?

The Walt Disney Company is conditional under our screen — one or more lines need filing-level verification before treating it as clearly halal or not halal.

### Does The Walt Disney Company pass the AAOIFI financial ratio screen?

As of 2026-03-28: interest-bearing debt is 27.2% of market cap (limit < 30%); cash plus interest-bearing securities is 3.3% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page.

### Is The Walt Disney Company held in halal ETFs like SPUS or HLAL?

No — as of our last check, The Walt Disney Company is not held by SPUS or HLAL. Absence can reflect a failed screen or index scope — verify current holdings before citing.

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---

Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30).

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