The Walt Disney Company just dropped its latest earnings report, and Wall Street is buzzing. After a turbulent few years, Disney’s stock is showing signs of a major turnaround—thanks to a streaming rebound, robust theme park performance, and a surprise move to double its share buyback target.
Disney’s Q4: Streaming Growth and Profit Surge
Disney’s fourth-quarter and full-year 2025 results, released November 13, delivered several headline-grabbing numbers.
Diluted earnings per share (EPS) for Q4 jumped to $0.73, nearly tripling from $0.25 in the same quarter last year. Total segment operating income for the year climbed
12% to
$17.6 billion, and direct-to-consumer (DTC) revenue—driven by Disney+ and Hulu—rose
8% for the quarter.
The company now boasts
196 million Disney+ and Hulu subscriptions, up 12.4 million from the previous quarter, with Disney+ alone adding 3.8 million new subscribers. This marks a significant rebound for Disney’s streaming business, which had faced subscriber losses and mounting costs in recent years.
Wall Street Reacts: Stock Price Targets and Analyst Buzz
Ahead of the earnings release, options traders braced for a dramatic
6.6% swing in Disney’s stock price—much higher than its typical post-earnings moves. The market’s anticipation was fueled by uncertainty around Disney’s streaming profitability, theme park momentum, and CEO Bob Iger’s ongoing turnaround strategy.
Analysts are bullish:
The average price target for Disney stock now sits between $135 and $141.38, implying a 20-21% upside from current levels. The consensus rating is a “Strong Buy,” with 14 Buys and just one Hold in the last three months.
Share Buybacks Double: A Signal of Confidence
In a move that caught many by surprise, Disney announced it is
doubling its share repurchase target to $7 billion for the year. Share buybacks are often seen as a sign of management’s confidence in the company’s future and can boost share prices by reducing the number of outstanding shares.
CEO Bob Iger emphasized the company’s progress:
“This was another year of great progress as we strengthened the company by leveraging the value of our creative and brand assets and continued to make meaningful progress in our direct-to-consumer business.”Theme Parks Shine, But Content Faces Headwinds
Disney’s theme parks and experiences division continued to be a bright spot, with high-single-digit percentage growth in operating income expected to continue into next year. However, the content sales and licensing segment saw a decline, reflecting tough comparisons to last year’s blockbuster theatrical releases like
Inside Out 2 and
Deadpool & Wolverine.
Looking ahead, Disney is investing
$24 billion in content across entertainment and sports, signaling a commitment to maintaining its creative edge despite fierce competition and shifting consumer habits.
What’s Next for Disney Investors?
-
Streaming growth is back on track, but investors will watch closely to see if profitability can keep pace with subscriber gains.
-
Theme parks remain a reliable engine, but content performance will be under scrutiny as Disney faces fewer big hits and rising production costs.
-
Share buybacks could provide a tailwind for the stock, especially if Disney continues to deliver on its turnaround promises.
For those considering buying Disney stock, experts recommend researching the company’s fundamentals, understanding its diverse revenue streams, and keeping an eye on industry trends.
Disney’s latest results suggest the magic is far from gone—and Wall Street is taking notice.
Sources
1. [PDF] q4-fy25-earnings.pdf - The Walt Disney Company
2. Walt Disney (DIS) Q4 Earnings Tomorrow: Options Traders Brace for ...
3. Zacks Investment Ideas feature highlights: Walt Disney, Amazon and ...
4. Does Disney Stock Have More Upside as Q4 Results Approach?
5. How to Buy Disney Stock (DIS) - NerdWallet
6. Investor Relations - Stock Information, Events, Reports, Financial ...
