Disney (DIS) Stock Forecast & Price Target

Walt Disney's stock outlook is bolstered by notable growth across its key business segments, particularly with a 25% year-over-year increase in ratings for ESPN content, signaling a resurgence in viewer engagement. The Experiences segment reported revenues of $8.8 billion, reflecting a 6% year-over-year increase, driven primarily by the continued success of domestic parks and cruise ship launches that should further enhance profitability. Additionally, the direct-to-consumer segment demonstrated strong performance with a positive operating income of $352 million, a 39% year-over-year increase, indicating effective monetization of the streaming platforms and a solid subscriber growth trajectory for Hulu+ Live TV.

Walt Disney's fiscal outlook is fraught with challenges, as the company anticipates a substantial decline in direct-to-consumer (DTC) streaming operating income by approximately $375 million in the first quarter of FY26, coupled with a negative impact of $400 million on segment operating income due to a weaker theatrical slate compared to the previous year. Furthermore, the linear television segment continues to struggle, evidenced by a 16% year-over-year revenue drop, reflecting ongoing subscriber attrition and diminished viewing hours, which collectively contribute to a lackluster performance in the traditional broadcasting arena. Additionally, despite some growth in the Experiences segment, the overall mixed financial results, including a flat revenue year-over-year and a decline in operating income, suggest persistent headwinds that may hinder future profitability.