Key Stats for Disney Stock
- Price change for Disney stock in the last 6 months: -6%
- $DIS Stock Price as of Aug. 5: $102
- 52-Week High: $120
- $DIS Stock Price Target: $127
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What Happened?
Disney (DIS) reported adjusted earnings of $2.06 per share, well above the $1.85 Wall Street expected. Revenue rose 7% year over year to $25.25 billion, just under the $25.41 billion analysts were looking for.
Net income fell to $2.64 billion from $5.26 billion a year ago, but that drop is misleading. Last year’s number included a one-time tax benefit tied to Disney’s Hulu purchase. On an adjusted basis, earnings actually grew from $1.61 per share a year ago to $2.06 this quarter.
The biggest driver was Disney’s experiences segment, which covers theme parks and cruises. Revenue there jumped 10% year over year to $9.97 billion.
U.S. park attendance rose 3%, and guests spent 4% more per visit. CFO Hugh Johnston said domestic performance is outpacing rivals, pointing to strong numbers at Walt Disney World even as a competing Orlando park has reported softer traffic.
Streaming also had a good quarter. The entertainment streaming business, mainly Disney+ and Hulu, saw revenue rise 11% to $5.53 billion, helped by more subscribers, higher prices, and rising ad revenue.
The broader entertainment segment, which includes streaming, TV, and movies, grew 6% to $11.35 billion. “Toy Story 5” helped that number, crossing $1 billion at the global box office.
Disney’s sports segment, built around ESPN, grew revenue 4% to $4.5 billion. Johnston highlighted huge viewership gains for the NBA and NHL playoffs, up more than 100% from last year, calling it the strongest sports ratings Disney has seen in roughly 25 to 30 years.
On top of the earnings numbers, Disney announced it received about $100 million in tariff refunds this quarter.
The company also raised its share buyback target for fiscal 2026 to at least $9 billion, up from $8 billion, helped by cash from selling its 50% stake in A+E Global Media to Hearst for roughly $1.2 billion.
Disney also revealed plans to move much of its consumer products business from the experiences segment into the entertainment unit starting in fiscal 2027, aiming to pair the studios that create characters with the business that sells the merchandise.
Separately, Disney announced a new global content deal with TikTok, bringing fan-made Disney content onto Disney+ as streaming platforms compete harder for younger viewers.
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What the Market Is Telling Us About Disney Stock
The 4% jump in Disney stock shows investors are focused on the earnings beat and the strength in parks and streaming, not the narrow revenue miss.
With theme park spending holding up better than rivals and streaming margins improving, the market seems to view Disney stock as being on solid footing heading into the back half of the fiscal year.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
