Disney's Q3 Report Exceeds Expectations, Price Target at $113.82

The Walt Disney Company (DIS) recently released its fiscal Q3 report, which exceeded Wall Street's expectations. The company delivered a clean beat and raised its outlook, prompting a bullish response from investors. Our model supports this move, assigning a price target of $113.82 over the next 12 months, representing an 11.85% upside from the current $101.76.

Disney's diversified cash streams, including streaming profits that more than doubled to $712 million, contributed to its strong performance. Experiences revenue rose 10%, with operating income increasing by 20%. The company also raised its FY26 buyback commitment to at least $9 billion and reiterated 12% adjusted EPS growth.

Compared to direct competitor Netflix (NFLX), Disney's forward P/E of 13 is roughly half that multiple, making our target conservative given the diversified cash streams. Comcast (CMCSA) is another comparable, but Disney outperforms across various categories, supporting our constructive stance.

Key catalysts to watch include whether sports OI stabilizes into FY27 and whether SVOD margins hold their double-digit path. Risks to monitor include Asia parks weakness spreading to domestic Experiences or sports rights inflation forcing another guidance reset.