The Walt Disney Company (DIS) is set to report its fiscal second-quarter earnings before the market opens on Wednesday. As anticipation builds, analysts remain generally optimistic about the media giant’s stock. In fact, five of the seven analysts surveyed by Visible Alpha have a “buy” rating on the stock, while the other two are holding a neutral stance. The average price target for Disney’s stock is $120, which would represent a nearly 30% upside from its recent close, hinting that analysts believe the stock could recover from its approximately 19% dip since the end of February.
Disney Q2 2025 Earnings Preview: Key Financial Projections
Analysts are forecasting that Disney will report second-quarter revenue of $23.17 billion, marking a 5% increase compared to the previous year. However, adjusted earnings per share (EPS) are expected to slightly dip, falling by one cent to $1.20. While this forecast reflects steady growth, there are some concerns about broader economic pressures that could impact Disney’s performance later in the year.
UBS analysts, for instance, have reiterated their “buy” rating but lowered their price target to $105 from $130. They expect Disney’s second-quarter results to show continued strength in parks and advertising, especially thanks to the new cruise ship launch. However, they caution that potential “recession risk” in the latter half of the fiscal year could hurt ad revenues and park attendance.
Disney Q2 2025 Earnings Preview: What Lies Ahead
While the company’s revenue and profit exceeded expectations last quarter, there were signs of strain within its Disney+ segment. Last quarter, Disney+ saw a slight decline in subscribers, falling to 124.6 million, and the company projected another modest drop in the current quarter. Analysts expect Disney to end Q2 2025 with 123.7 million subscribers on Disney+.
As the company looks toward the second half of 2025, much will depend on the performance of its key segments, especially Disney’s media networks and parks division. The next earnings report will give investors a clearer picture of how Disney is navigating the current economic environment and whether the company’s streaming services and other ventures can weather the storm.
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Source: www.investopedia.com
