Summary
⚈ Disney’s full-year profit guidance was raised to $5.75, signaling significant YoY growth.
⚈ Analysts cut 12-month price targets despite strong earnings, with mixed outlooks.
Investment banking giants and Wall Street firms have revised their outlooks on Disney stock (NYSE: DIS) following the company’s Q2 2025 earnings call on May 7.
The entertainment powerhouse reported earnings per share (EPS) of $1.45, outpacing expectations of $1.20, as well as revenues of $23.62 billion, above consensus estimates, which were pegged at $23.14 billion.
In addition, the House of Mouse raised its full-year profit guidance to $5.75 a share, which entails roughly twice the year-over-year (YoY) growth of the previous figure.
Investors reacted positively to the news, particularly after worries that box office bombs would sink share prices. The latest earnings report marks the third consecutive time that the company has beaten earnings estimates, starting with Q4 of 2024.
Disney stock surged by 10.86% on the day to close at $102.09. By press time on May 8, DIS shares were trading at $103.25 in the pre-market trading session.
Despite these promising results, analyst coverage in the aftermath of Disney’s Q2 earnings has tended toward the bearish side.
Banking giant equity analysts cut Disney stock 12-month price forecasts
Guggenheim equity researcher Michael Morris doubled down on a ‘Buy’ rating, but slashed his 12-month price forecast for DIS shares from $130 to $120. The analyst’s revised price target implies a 16.22% upside from current prices.
Jefferies internet and interactive media sector lead analyst James Heaney hiked his price target on DIS stock from $87 to $100, and maintained a ‘Hold’ rating. The researcher noted that the entertainment titan successfully addressed two of the most pressing concerns investors had regarding this quarter — positive net additions in streaming and reaffirmed guidance for its Experiences division.
On the back of the earnings report, Jefferies has revised EPS estimates upward by roughly 5% — the new price target is derived from a 16 times multiple of forecasted FY2026 EPS. The newly-issued forecast implies a 3.14% downside.
Featured image via Shutterstock
