The Walt Disney Company (NYSE:DIS) has captured investor attention following robust third-quarter results and news of a major sports media acquisition. With the potential purchase of the NFL Network, Disney stock is positioned for growth across streaming, media, and theme park segments.
About Disney Stock
Founded in 1923, Disney (NYSE:DIS) is a global leader in entertainment and media, owning iconic brands such as Disney, Pixar, Marvel, Star Wars, and National Geographic. Its operations span television broadcasting, film production, merchandise licensing, digital streaming through Disney+ and Hulu, and internationally renowned theme parks and resorts. Disney’s market capitalization stands at approximately $209 billion.
A transformation is underway in Disney’s sports segment. Its ESPN subsidiary is launching a comprehensive sports streaming service on Aug. 21, coinciding with the NFL season kickoff. Central to this initiative is Disney’s planned acquisition of the NFL Network, which has nearly 50 million subscribers. This move enhances Disney’s sports streaming leverage and broadens its content offering for both domestic and international audiences.
Recent Performance and Valuation
Over the past 52 weeks, Disney stock has gained 34%, reaching a 52-week high of $124.69 in late June, though it currently trades about 8% below that level. Year-to-date, DIS stock is up nearly 4%. The stock currently trades at 19.3 times forward earnings, lower than the industry average, making it attractive to investors seeking growth at a reasonable valuation.
Strong Third-Quarter Earnings
Disney reported Q3 fiscal 2025 revenue of $23.65 billion, a 2% increase from the prior year, slightly below analyst expectations of $23.68 billion. Subscriber growth and theme park performance drove this increase. Disney+ subscriptions reached 127.8 million, up 1.4% from the previous quarter, while Hulu subscribers grew 1.5% sequentially to 55.5 million. International Disney+ subscribers increased 2.5%, offsetting flat domestic growth.
The direct-to-consumer segment turned profitable with operating income of $346 million, a marked improvement from a $19 million loss a year ago. Disney’s experiences segment saw operating income rise 13% year-over-year to $2.52 billion. Adjusted EPS grew 16% to $1.61, surpassing analyst expectations of $1.46 per share.
For Q4, Disney projects over 10 million new subscriptions across Disney+ and Hulu, with Hulu expected to drive most of the growth due to expanded distribution agreements. Full-year adjusted EPS is forecast at $5.85, representing an 18% increase.
Analyst Sentiment on Disney Stock
Wall Street remains bullish on Disney stock. Rosenblatt recently raised its price target from $140 to $141 with a “Buy” rating, citing theme park growth. Needham analyst Laura Martin maintained a $125 target and “Buy” rating, while Evercore ISI analyst Vijay Jayant raised his target from $134 to $140 with an “Outperform” rating. Morgan Stanley’s Benjamin Swinburne also lifted his target to $140, maintaining an “Outperform” rating.
Overall, the consensus among 28 analysts is a “Strong Buy,” with 20 analysts recommending this, two suggesting a “Moderate Buy,” and six rating it a “Hold.” The average price target of $134.52 suggests 17% upside, while the high target of $152 implies 32% potential gains.
The Bottom Line
Disney’s growth in subscriber counts, theme parks, and upcoming NFL Network acquisition positions Disney stock (NYSE:DIS) as a compelling opportunity for investors seeking exposure to entertainment, streaming, and media. With improving profitability and strong analyst support, DIS stock may be worth considering for long-term growth portfolios.
Featured Image: Pixabay © Fabiana Bigao
