Price Prediction: We're Bullish on Disney as Streaming Surges

"Our 24/7 Wall St. price target for Disney ( NYSE:DIS | DIS Price Prediction) is $122.51 over the next 12 months, implying 13.37% upside from the current price of $108.06. We rate Disney a buy with high confidence (90%) following a strong fiscal Q2 earnings report, an inflection in streaming margins, and management's raised buyback. The setup is constructive: shares trade 4% below the 52-week high, sentiment is firming, and FY26 EPS guidance points to double-digit growth."

"The catalyst was fiscal Q2 2026: adjusted EPS of $1.57 topped consensus by 4.98%, and revenue of $25.16 billion rose 6.55% year over year. Operating income jumped 31.29% to $4.60 billion. Entertainment SVOD posted its first double-digit operating margin (10.6%), with operating income up 88% to $582 million. Experiences delivered record fiscal Q2 revenue of $9.48 billion with domestic per-capita spending up 5%."

"Bulls focus on three levers. First, streaming: SVOD margin expanded from 8.4% in Q1 2026 to 10.6% in Q2 2026, with 196 million Disney+/Hulu subscribers providing scale. Second, Experiences keeps compounding, with international parks up 11% and capital-light expansions in Abu Dhabi and Japan extending the runway. Third, capital return: management raised the FY26 buyback to at least $8 billion."

"Our bull-case scenario points to $134.46 within 12 months, a 24.43% total return. Wall Street's consensus target of $128.25 reflects 7 Strong Buy and 20 Buy ratings. Barclays analyst Kannan Venkateshwar raised the firm's price target on Disney to $135 from $130 and keeps an Overweight rating on the shares following the earnings report."

Disney’s 12-month price target is $122.51, implying 13.37% upside from $108.06, with a buy rating supported by strong fiscal Q2 2026 results. Adjusted EPS of $1.57 beat consensus by 4.98%, while revenue rose 6.55% year over year to $25.16 billion. Operating income increased 31.29% to $4.60 billion. Entertainment SVOD achieved its first double-digit operating margin at 10.6%, with operating income up 88% to $582 million. Experiences generated record fiscal Q2 revenue of $9.48 billion, with domestic per-capita spending up 5%. Management raised the FY26 buyback to at least $8 billion, and FY26 EPS guidance points to double-digit growth.

Read at 24/7 Wall St.