What Analysts Think of Disney Stock Ahead of Earnings

Disney is poised to report fiscal Q3 2025 results, with analysts broadly bullish, projecting $23.75 billion in revenue and $1.48 EPS, both year-over-year increases, and an average price target of $136, representing 17% upside. Expectations include continued Disney+ subscriber growth and resilient demand for theme parks, while future catalysts such as new film releases, cruise ships, and improving streaming profitability are cited. The company recently lifted its FY25 adjusted EPS projection to $5.75, up 16%.

Analysis

Consensus ahead of The Walt Disney Co.'s (DIS) fiscal third-quarter report is strongly bullish, with analysts projecting year-over-year growth in both revenue to $23.75 billion and adjusted EPS to $1.48. This optimism is supported by the company's own upgraded guidance for fiscal 2025, which anticipates a 16% increase in adjusted EPS to $5.75. The positive sentiment is largely predicated on expectations of resilient consumer demand for its theme parks and cruises, alongside a forecasted increase in Disney+ subscribers, continuing a trend from the prior quarter. Forward-looking catalysts are a significant driver of this outlook, with analysts from UBS and Jefferies highlighting a strong pipeline of new films, the launch of two new cruise ships by year-end, and improving profitability in the direct-to-consumer segment, further bolstered by the forthcoming ESPN streaming service and the full integration of Hulu. Analyst price targets, such as the average of near $136, imply a potential 17% upside and reflect confidence that these strategic initiatives will propel the stock to its highest levels since April 2022.

Key Decisions for Investors

• Given the high expectations baked into the current valuation, investors should scrutinize the upcoming earnings for confirmation of resilient demand in the Experiences segment and sustained subscriber growth in Disney+, as any miss could trigger a significant repricing.
• With a clear catalyst path laid out, including new cruise ships and the ESPN streamer, long-term investors may view the current sentiment as supportive of holding or accumulating positions, while monitoring execution on these key growth initiatives.
• Traders should be aware that this report is viewed as a pivotal moment for Disney's two-year narrative; therefore, expect heightened volatility around the release as the market digests both the results and management's commentary on the outlook for streaming profitability and park spending.