Analysts Raise Price Target for Disney Amid Strong Q2 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Yahoo Finance
- Strong Earnings Beat: On May 7, Raymond James raised the price target for The Walt Disney Company (NYSE:DIS) from $115 to $119, indicating that the company delivered better-than-expected Q2 results and slightly increased FY26 EPS guidance to 12% growth, which bolsters market confidence in its future performance.
- Double-Digit Growth Outlook: Analysts anticipate a double-digit EPS CAGR for FY26-FY27, supported by Disney's strong franchise IP, resilient sports exposure, scaled streaming ecosystem, and robust cash flows from Parks and Experiences, highlighting the company's diverse revenue streams.
- Streaming as Growth Driver: While Experiences remain the largest profit contributor, analysts noted that growth in streaming is increasingly driving operating income, showcasing Disney's successful diversification of its revenue sources and adaptation to changing market dynamics.
- Optimistic Market Outlook: With moderating macro concerns, analysts are increasingly optimistic about the FY26 outlook for the second half, believing that Disney's business model and market positioning will continue to provide substantial growth opportunities.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DIS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 103.000
Low
123.00
Averages
137.29
High
152.00
Current: 103.000
Low
123.00
Averages
137.29
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Disney Launches New Attractions to Compete with Universal
- New Attractions Launch: Disney has opened several new attractions in its Florida theme parks, including interactive experiences featuring characters from 'Bluey' and 'Toy Story', aimed at attracting family visitors and boosting summer attendance, which is expected to further drive revenue growth.
- Revenue Growth Momentum: Despite Comcast's Epic Universe opening last year boosting its theme park revenue by 19%, Disney's theme park revenue increased by 8% in the June quarter and 6% in the September quarter, demonstrating its market resilience.
- Operating Income Improvement: Disney's theme park segment saw a 13% increase in operating income in both recent quarters, while Comcast's margins contracted, indicating Disney's strong profitability amidst competition.
- Market Competition Dynamics: Although Disney's stock has fallen 7% over the past year, Comcast's stock has dropped 23%, potentially providing a buying opportunity for investors, reflecting differing market expectations for the future performance of both companies.
See More
Shifts in Holiday Consumer Spending Trends
- Changing Preferences: Young shoppers are opting for Surfside and Sun Cruiser cans over White Claw during the holiday, indicating Gen Z's fatigue with seltzers, which may impact beverage market strategies moving forward.
- Middle East Tensions: U.S. Central Command conducted self-defense strikes in Iran, resulting in a more than 2% rise in Brent crude oil futures, highlighting the direct impact of geopolitical tensions on energy markets and potential price volatility.
- New Fed Chair: Kevin Warsh was sworn in as the Federal Reserve chair at the White House, the first since 1987, with market watchers keen on his promise of independence and potential
See More
U.S. Strikes in Iran Trigger Oil Price Fluctuations
- U.S. Defensive Strikes: The U.S. Central Command reported conducting defensive strikes in Iran to protect American troops from threats posed by Iranian forces, following President Trump's remarks about positive negotiations, indicating a firm U.S. military stance in the Middle East.
- Oil Price Fluctuations: Brent crude oil futures rose over 2% after the strikes, while West Texas Intermediate futures fell by 4%, reflecting market sensitivity to geopolitical risks that could impact global energy supply chains.
- Huawei's New Chip Design: Huawei announced a new design approach for its smartphone chips called 'LogicFolding', intensifying competition with Nvidia and Apple, and potentially solidifying Huawei's market leadership in China amid U.S. export restrictions.
- Rising Travel Costs: Due to soaring oil prices and the troubles of Spirit Airlines, airfare has reached its highest level in four years, with AAA data showing gasoline prices at their highest since 2022 as consumers face economic pressures while traveling during the Memorial Day weekend.
See More
Trump's Mixed Signals on Iran Deal Impacting Oil Prices
- Uncertain Deal Outlook: Trump describes negotiations with Iran as 'constructive' while simultaneously posting images of U.S. military actions against Iranian ships, indicating uncertainty around the deal's prospects, which may heighten market concerns over energy security.
- Oil Price Fluctuations: Optimism among traders regarding a potential deal has led to a nearly 5% drop in U.S. West Texas Intermediate futures to $91.79, while international benchmark Brent fell below $100 for the first time in over a month to $98.33, reflecting market sensitivity to future supply and demand dynamics.
- Middle East Economic Plans Disrupted: The ongoing conflict is jeopardizing Gulf nations' economic plans, particularly those tied to the global AI boom, with many data center investment decisions being paused or delayed, highlighting the conflict's detrimental impact on investor confidence.
- Nuclear Issues as Hurdles: Iran's insistence on retaining enriched uranium stockpiles and imposing tolls for passage through the strategically vital Strait of Hormuz presents significant hurdles to peace talks, with Trump stating that Washington will not rush into a deal, potentially prolonging the conflict and affecting regional stability.
See More
SpaceX Targets $1.75 Trillion Valuation for Upcoming IPO
- IPO Valuation Target: SpaceX is aiming for a staggering $1.75 trillion valuation upon its Nasdaq debut, positioning itself as one of the most valuable companies in the market and likely attracting significant investor interest.
- Diverse Revenue Streams: According to the latest S1 filing, SpaceX's 'Space' and 'Connectivity' segments generated over $4 billion in revenue in 2025, showcasing its strong market position in rocket launches and satellite internet services.
- Industry Classification Challenges: Given SpaceX's involvement in multiple sectors, MSCI and S&P face complexities in determining its final industry classification, which could place it in either the Communication Services or Industrials sector, impacting its appeal to investors.
- Future Growth Potential: Musk indicated that future AI computing will rely on solar-powered satellites in space, and SpaceX's innovative approach to data centers could enable it to achieve lower operational costs over time, thereby securing a more advantageous position in the market.
See More
‘Mandalorian and Grogu’ Opens Strong, Signaling Higher Stakes for Franchise Films
- Strong Box Office Performance: Disney's ‘Mandalorian and Grogu’ debuted with approximately $81.96 million in domestic ticket sales over the three-day weekend, with projections suggesting a $102 million four-day haul, indicating robust market demand and brand strength.
- Global Revenue Growth: The film's estimated global box office reached $165 million, including $63 million from international markets, demonstrating the enduring appeal of the ‘Star Wars’ franchise worldwide.
- Signs of Industry Recovery: Although the overall holiday weekend box office fell 34% from last year, year-to-date domestic revenue has climbed to about $3.41 billion, up 14%, indicating a gradual recovery in the theater market.
- Significant IMAX Benefits: IMAX benefited significantly from the launch of ‘Mandalorian and Grogu’, generating $24.4 million globally, which accounted for nearly 15% of the film's worldwide debut, further solidifying IMAX's position in the premium viewing experience market.
See More
Disney Launches New Attractions to Compete with Universal
- New Attractions Launch: Disney has opened several new attractions in its Florida theme parks, including interactive experiences featuring characters from 'Bluey' and 'Toy Story', aimed at attracting family visitors and boosting summer attendance, which is expected to further drive revenue growth.
- Revenue Growth Momentum: Despite Comcast's Epic Universe opening last year boosting its theme park revenue by 19%, Disney's theme park revenue increased by 8% in the June quarter and 6% in the September quarter, demonstrating its market resilience.
- Operating Income Improvement: Disney's theme park segment saw a 13% increase in operating income in both recent quarters, while Comcast's margins contracted, indicating Disney's strong profitability amidst competition.
- Market Competition Dynamics: Although Disney's stock has fallen 7% over the past year, Comcast's stock has dropped 23%, potentially providing a buying opportunity for investors, reflecting differing market expectations for the future performance of both companies.
See More
Shifts in Holiday Consumer Spending Trends
- Changing Preferences: Young shoppers are opting for Surfside and Sun Cruiser cans over White Claw during the holiday, indicating Gen Z's fatigue with seltzers, which may impact beverage market strategies moving forward.
- Middle East Tensions: U.S. Central Command conducted self-defense strikes in Iran, resulting in a more than 2% rise in Brent crude oil futures, highlighting the direct impact of geopolitical tensions on energy markets and potential price volatility.
- New Fed Chair: Kevin Warsh was sworn in as the Federal Reserve chair at the White House, the first since 1987, with market watchers keen on his promise of independence and potential
See More
U.S. Strikes in Iran Trigger Oil Price Fluctuations
- U.S. Defensive Strikes: The U.S. Central Command reported conducting defensive strikes in Iran to protect American troops from threats posed by Iranian forces, following President Trump's remarks about positive negotiations, indicating a firm U.S. military stance in the Middle East.
- Oil Price Fluctuations: Brent crude oil futures rose over 2% after the strikes, while West Texas Intermediate futures fell by 4%, reflecting market sensitivity to geopolitical risks that could impact global energy supply chains.
- Huawei's New Chip Design: Huawei announced a new design approach for its smartphone chips called 'LogicFolding', intensifying competition with Nvidia and Apple, and potentially solidifying Huawei's market leadership in China amid U.S. export restrictions.
- Rising Travel Costs: Due to soaring oil prices and the troubles of Spirit Airlines, airfare has reached its highest level in four years, with AAA data showing gasoline prices at their highest since 2022 as consumers face economic pressures while traveling during the Memorial Day weekend.
See More
Trump's Mixed Signals on Iran Deal Impacting Oil Prices
- Uncertain Deal Outlook: Trump describes negotiations with Iran as 'constructive' while simultaneously posting images of U.S. military actions against Iranian ships, indicating uncertainty around the deal's prospects, which may heighten market concerns over energy security.
- Oil Price Fluctuations: Optimism among traders regarding a potential deal has led to a nearly 5% drop in U.S. West Texas Intermediate futures to $91.79, while international benchmark Brent fell below $100 for the first time in over a month to $98.33, reflecting market sensitivity to future supply and demand dynamics.
- Middle East Economic Plans Disrupted: The ongoing conflict is jeopardizing Gulf nations' economic plans, particularly those tied to the global AI boom, with many data center investment decisions being paused or delayed, highlighting the conflict's detrimental impact on investor confidence.
- Nuclear Issues as Hurdles: Iran's insistence on retaining enriched uranium stockpiles and imposing tolls for passage through the strategically vital Strait of Hormuz presents significant hurdles to peace talks, with Trump stating that Washington will not rush into a deal, potentially prolonging the conflict and affecting regional stability.
See More
SpaceX Targets $1.75 Trillion Valuation for Upcoming IPO
- IPO Valuation Target: SpaceX is aiming for a staggering $1.75 trillion valuation upon its Nasdaq debut, positioning itself as one of the most valuable companies in the market and likely attracting significant investor interest.
- Diverse Revenue Streams: According to the latest S1 filing, SpaceX's 'Space' and 'Connectivity' segments generated over $4 billion in revenue in 2025, showcasing its strong market position in rocket launches and satellite internet services.
- Industry Classification Challenges: Given SpaceX's involvement in multiple sectors, MSCI and S&P face complexities in determining its final industry classification, which could place it in either the Communication Services or Industrials sector, impacting its appeal to investors.
- Future Growth Potential: Musk indicated that future AI computing will rely on solar-powered satellites in space, and SpaceX's innovative approach to data centers could enable it to achieve lower operational costs over time, thereby securing a more advantageous position in the market.
See More
‘Mandalorian and Grogu’ Opens Strong, Signaling Higher Stakes for Franchise Films
- Strong Box Office Performance: Disney's ‘Mandalorian and Grogu’ debuted with approximately $81.96 million in domestic ticket sales over the three-day weekend, with projections suggesting a $102 million four-day haul, indicating robust market demand and brand strength.
- Global Revenue Growth: The film's estimated global box office reached $165 million, including $63 million from international markets, demonstrating the enduring appeal of the ‘Star Wars’ franchise worldwide.
- Signs of Industry Recovery: Although the overall holiday weekend box office fell 34% from last year, year-to-date domestic revenue has climbed to about $3.41 billion, up 14%, indicating a gradual recovery in the theater market.
- Significant IMAX Benefits: IMAX benefited significantly from the launch of ‘Mandalorian and Grogu’, generating $24.4 million globally, which accounted for nearly 15% of the film's worldwide debut, further solidifying IMAX's position in the premium viewing experience market.
See More
