Our Highest Conviction Call on Disney Points to $110 on Earnings Growth

Disney (NYSE:DIS) has spent 2026 grinding sideways portion the underlying concern softly accelerates. Shares are down 10.98% twelvemonth to date, yet streaming margins conscionable crossed treble digits and FY26 EPS maturation is guided astatine astir 16%. That disconnect is the full setup for our call.

Our 24/7 Wall St. terms people for Disney is $110.07, implying 8.68% upside from $101.28. We complaint Disney a bargain with precocious confidence.

24/7 Wall St. Price Target Summary

A Streaming Inflection Hiding Behind a Sideways Tape

Disney is down 14.3% implicit the past twelvemonth and up 1.96% implicit the past week, with a 14-day RSI of 49.03 that reads arsenic neutral. The banal sits betwixt a 52-week debased of $92.19 and a precocious of $123.85.

The May 6 net study told a overmuch amended communicative than the tape. Q2 FY26 adjusted EPS came successful astatine $1.57 versus $1.4955 expected, connected gross of $25.168 billion, up 6.55% twelvemonth implicit year. Operating income jumped 31.29%, Entertainment SVOD operating income surged 88% to $582M, and the Experiences conception posted grounds Q2 gross of $9.487 billion. Management raised the buyback people to astatine slightest $8 billion.

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The Case for $120+

The bull thesis hinges connected streaming. Entertainment SVOD conscionable deed a 10.6% operating margin, with 196M combined Disney+ and Hulu subscribers. Add the ESPN DTC launch, the NFL Network acquisition, and double-digit FY27 EPS maturation guidance, and the operating leverage communicative is real.

Experiences support printing records, helped by recreation spending of $864.2 cardinal successful April 2026, a caller high. The $129.67 expert target, backed by 27 Buy ratings versus 1 Sell, is the bull scenario. Hit FY27 EPS estimates with a 19x aggregate and Disney trades northbound of $120.

What Could Go Wrong

Q1 FY26 escaped currency travel swung to antagonistic $2.278 cardinal connected California wildfire taxation payments, and Q3 Sports operating income is guided down astir 14% connected higher programming costs. The NFL woody is $0.03 dilutive to FY26 EPS, and Polymarket traders springiness Disney+ lone a 28% accidental of reaching 150M users by September.