Disney Stock Soars 3.3% Ahead of Earnings Report

The Walt Disney Company's stock surged 3.3% in pre-market trading on August 6, 2025, as investors anticipate the release of the company's fiscal third-quarter earnings, scheduled for the following day.

Analysts are optimistic about Disney's prospects, with many raising their price targets for the stock. UBS recently boosted its target to $138 from $120, citing strong demand at Disney's theme parks and improving profitability in the direct-to-consumer (DTC) segment. JPMorgan Chase also raised its target to $138 from $130, highlighting anticipated operating income gains within the DTC segment. The overall consensus among analysts points to a “Strong Buy” rating, with an average price target of $132.32, suggesting further upside potential.

Disney's DTC segment, which includes streaming services like Disney+, Hulu, and ESPN+, has shown impressive growth. In the second quarter of fiscal 2025, this segment reported an operating income of $336 million, a significant increase from $47 million in the same period last year. This growth is attributed to strategic price hikes, increased advertising revenues, and efforts to combat password sharing. The Experiences segment, which includes theme parks, resorts, and cruise lines, has also been a strong performer, with revenue rising 6% to $8.89 billion in the second quarter.

While the media networks segment faces challenges, with linear television revenue declining, the sports segment, primarily ESPN, has shown resilience with a 5% revenue increase. Analysts anticipate that Disney's overall earnings growth will continue to be driven by the strong performance of its DTC and Experiences segments. With the stock having added 35% in the past 12 months, investors are eagerly awaiting the earnings report to see if the company can maintain its momentum.