Disney (DIS) Stock Forecast & Price Target

Walt Disney's financial outlook remains positive due to significant increases in viewership across ESPN content, with a 25% year-over-year rise reported in FY4Q25. The company's theme park bookings have also shown resilience, rising 3% for the December quarter and demonstrating continued growth year-to-date in FY26. Additionally, Disney's direct-to-consumer segment has achieved positive operating income of $352 million, reflecting a 39% year-over-year increase, supported by robust revenues of $6.25 billion.

Walt Disney's financial outlook appears negative due to significant declines in operating income across its various segments, particularly in the entertainment sector where a 35% year-over-year decrease was reported alongside a 6% drop in revenues. The linear television segment also faced challenges, with revenues falling by 16% year-over-year, attributed to subscriber attrition and reduced viewing hours. Additionally, the company's first-quarter 2026 guidance indicates potential weaknesses, with direct-to-consumer streaming operating income expected to be adversely impacted by $400 million compared to the previous year, compounded by substantial pre-opening and dry dock expenses in its cruise line operations.