Disney shares are trading at $107.24, roughly 20% below the Wall Street average price target of $128.34, a gap that has persisted for months even as 30 of 33 analysts maintain Buy ratings. The bull case rests on three pillars: a 13% SVOD operating margin in fiscal Q3 with combined Disney+ and Hulu operating income more than doubling to $712 million, Experiences resilience with global guest count up 4% and domestic per-capita spending up 4%, and a raised $9 billion FY2026 buyback supported by a $1.2 billion A+E sale. Management reiterated double-digit full-year SVOD margins and reaffirmed approximately 12% adjusted EPS growth for FY2026 excluding the 53rd week, with double-digit growth again in FY2027. Fiscal Q3 revenue rose 7% and total segment operating income rose 21% year over year, marking a fifth straight EPS beat at $2.06, though net income fell 49.9% on prior-year one-time items. The path back to $128 runs through the November 11 fiscal Q4 report, where a clean result plus double-digit FY2027 EPS guidance would let the Street defend its targets.
Walt Disney CompanyAnalysts defend Buy ratings with $128 target as Disney trades 20% below it, citing SVOD margin gains, $9B buyback, and reaffirmed double-digit EPS growth.
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