Walt Disney Co poised for double-digit earnings growth in Q3

Walt Disney Co is expected to report double-digit earnings growth for Q3, with UBS analysts projecting a 13% YoY increase in EPS to $1.59 and 12% YoY growth in segment operating income to $4.75 billion. The analysts attribute the growth to resilient Parks performance and continued gains in direct-to-consumer profitability. They have raised their price target to $138, representing a 16% upside from the current share price.

Walt Disney Co (NYSE: DIS) is expected to report double-digit earnings growth for Q3, according to analysts at UBS Group. The investment bank projects a 13% year-over-year (YoY) increase in earnings per share (EPS) to $1.59 and a 12% YoY growth in segment operating income to $4.75 billion [1]. The analysts attribute this growth to resilient performance in the company's theme parks and continued gains in direct-to-consumer profitability.

UBS Group has raised its price target for Walt Disney stock to $138, representing a 16% upside from the current share price. This optimistic outlook is supported by the company's recent financial performance and strong market fundamentals. Walt Disney's stock has shown resilience, trading up 0.9% on Wednesday, July 16th, and reaching $120.01 [2].

In addition to UBS Group's positive outlook, several other analysts have also expressed bullish sentiments about Walt Disney's stock. Jefferies Financial Group, Wall Street Zen, Rosenblatt Securities, Citigroup, and Guggenheim have all raised their price targets and ratings for the stock, contributing to a consensus rating of "Moderate Buy" and an average target price of $128.13 [2].

Walt Disney's strong performance in Q2, with earnings per share of $1.45, beating analysts' consensus estimates by $0.24, has set a positive tone for the company's upcoming earnings report. The company's theme parks, which include Disneyland and Walt Disney World, have shown consistent growth, driven by increased attendance and higher ticket prices.

Investors are also keeping an eye on the company's direct-to-consumer segment, which includes Disney+, Hulu, and ESPN+. This segment has seen significant growth in recent years, driven by the increasing demand for streaming services. The company's strong content library and strategic partnerships have positioned it as a major player in the streaming market.

In conclusion, Walt Disney Co is expected to report strong earnings growth for Q3, with UBS Group projecting a 13% YoY increase in EPS and a 12% YoY growth in segment operating income. The company's resilient performance in its theme parks and continued gains in direct-to-consumer profitability are driving this growth. Analysts have raised their price targets for the stock, contributing to a positive outlook for investors.

References:

[1] https://www.marketbeat.com/instant-alerts/filing-oversea-chinese-banking-corp-ltd-increases-stock-holdings-in-the-walt-disney-company-nysedis-2025-07-14/
[2] https://www.marketbeat.com/instant-alerts/ubs-group-issues-positive-forecast-for-walt-disney-nysedis-stock-price-2025-07-16/