Disney (DIS) Stock Forecast & Price Target

Walt Disney's stock outlook remains positive, supported by a substantial 25% year-over-year increase in ratings across all ESPN content and an uptick in theme park bookings, which rose 3% for the December quarter. Additionally, the direct-to-consumer segment demonstrated robust financials with a positive operating income of $352 million—up 39% year-over-year—while revenue reached $6.25 billion, indicating strong subscriber gains in services like Hulu+ Live TV. The experiences segment reported revenues of $8.8 billion, reflecting a 6% year-over-year growth, bolstered by expansions in domestic parks and new cruise ship launches, contributing to sustained growth and improved margins going forward.

The financial outlook for Walt Disney remains negative, primarily due to declining revenues and operating income across key segments. The company's linear television segment experienced a 16% year-over-year revenue drop, attributed to subscriber losses and reduced viewer engagement, while its Entertainment segment saw a 6% revenue decline along with a substantial 35% fall in operating income. Additionally, the guidance for fiscal year 2026 indicates significant challenges, including a projected adverse impact on direct-to-consumer streaming operating income and notable pre-opening and dry dock expenses that further strain profitability.