Disney (DIS) Stock Forecast & Price Target

Walt Disney's financial outlook is bolstered by strong year-over-year growth across its key segments, with a notable 25% increase in ratings for ESPN content and a 3% rise in theme park bookings, indicating robust consumer interest. The company's direct-to-consumer segment showed promising performance, with a positive operating income of $352 million and a 39% year-over-year increase, contributing to overall revenues of $6.25 billion. Additionally, the Experiences segment reported revenue of $8.8 billion, up 6% year-over-year, with significant growth driven by domestic parks and cruise ship launches projected to enhance profitability further in the coming years.

The outlook on Walt Disney's stock is negatively impacted by multiple financial metrics, including a projected decline in direct-to-consumer (DTC) segment operating income (OI) of approximately $400 million in 1Q26 compared to the previous year, along with lower political advertising revenue of $140 million. Additionally, the linear television segment faces significant challenges, evidenced by a 16% year-over-year revenue decrease, driven by subscriber attrition and diminished viewing hours. Overall, Disney's Entertainment segment reported a 6% revenue decline and a substantial 35% drop in operating income in FY4Q25, indicating ongoing struggles in its core business operations.