The Walt Disney Company (DIS), a titan in global entertainment, has just pulled another rabbit out of its hat. With the announcement of a new Disney theme park resort in Abu Dhabi, its most tech-forward yet, the company is once again blending imagination with strategy. CEO Bob Iger described the park as “authentically Disney and distinctly Emirati,” a nod to cultural synergy.

But the real kicker came in Disney’s fiscal Q2 2025 report. The streaming segment saw operating profit soar. While Disney had guided for a “modest decline” in Disney+ subscribers and analysts predicted a 1.1 million drop, the service instead added 1.4 million, including 1 million in the U.S. and Canada, ending the quarter at 126.0 million.

Even as economic clouds gather, Iger stands firm on Disney’s optimistic full-year guidance, and that’s music to any investor’s ears.

About Disney Stock

The Walt Disney Company (DIS), based in Burbank, California, continues to reign supreme as a global entertainment powerhouse. Valued at $198 billion, Disney’s impressive portfolio includes some of the most iconic franchises ever created, such as Marvel, Star Wars, Pixar, and Disney Animation, along with the ownership of ABC and 20th Century Studios.

Over the past month, DIS has staged a remarkable rally, gaining 31%. In just the past five days, it surged by a further 20%, including a 10.8% single-day leap after its latest earnings announcement.

As of now, DIS stock is trading at 18.4 times adjusted forward earnings and 2.1 times sales, a premium when compared to industry averages. However, these figures are still well below DIS’ five-year historical averages.

Disney Surpasses Q2 Earnings

Disney pulled back the curtain on its fiscal second-quarter 2025 earnings on May 7, comfortably outpacing Wall Street’s predictions. The entertainment giant reported revenue of $23.62 billion, marking a 7% increase year over year and surpassing the forecast $23.05 billion.

At the heart of Disney’s strong showing was its streaming segment, a space where many rivals are still bleeding cash. Disney+, coupled with Hulu, turned in a profit of $336 million, a sevenfold leap from the modest $47 million earned in Q2 2024.

Net income stood tall at $3.3 billion, a dramatic turnaround from a $20 million loss in the same period last year. Adjusted EPS jumped 20% to $1.45, well ahead of the $1.20 estimate. The surge was fueled by robust streaming gains, vibrant domestic theme park performance, and the home entertainment success of Moana 2.

Subscriber growth also told a positive story, with Disney+ reaching 126 million paid subscribers as of March 29, up from 124.6 million as of Dec 28, 2024. Cash and cash equivalents came in at $5.9 billion while free cash flow stood at $4.9 billion.

Looking ahead, Disney expects adjusted EPS for fiscal year 2025 to come in at $5.75, representing a 16% year-over-year increase. The company also anticipates double-digit operating income growth in both its entertainment and sports segments, while projecting a 6% to 8% increase in operating income from its theme park and consumer products business.

On the analyst front, EPS for Q3 2025 is expected to rise 5% year over year to $1.46. For the full fiscal year, analysts foresee a 15.9% jump in EPS to $5.76, followed by another 8.2% gain in the fiscal year 2026, bringing the bottom line to $6.23.

What Do Analysts Expect for Disney Stock?

Winds of change are blowing in Disney’s favor, as sentiment on the Street begins to shift. Jessica Reif Ehrlich of Bank of America Corporation sees brighter skies ahead, calling the upgraded earnings growth outlook a welcome sign amid persistent macroeconomic clouds. Staying firm in her conviction, she holds a “Buy” rating on DIS stock with a price target of $140.

DIS holds a “Strong Buy” consensus from Wall Street. Of 29 analysts, 21 recommend “Strong Buy,” two suggest “Moderate Buy,” and six remain on “Hold.”

The average price target of $126.50 represents potential upside of 14%, while the Street-high target of $148 signals a possible surge of 33% from current levels.