Disney Sees Undervalued Stock, Raises Share Buyback Program to $9 Billion

Disney's stock has been underperforming in recent years, but analysts believe it's undervalued. The company released its fiscal Q3 2026 earnings on August 5, showing a solid performance despite a slight top-line miss. Disney's streaming business has turned around, posting an operating profit of $712 million in the quarter.

Disney CEO Josh D'Amaro pointed out that success in one area, such as a hit film, can compound into value elsewhere, whether it's a new cruise ship theme, a video game expansion, or a themed land in a park. The company has increased its share buyback program for the current fiscal year to $9 billion.

Sell-side analysts see significant upside in Disney, with a mean target price of $128.87 and a consensus rating of 'Strong Buy' from 32 analysts polled by Barchart. Goldman Sachs has a Street-high target price of $163, which is 58.7% higher than current price levels.