Is Disney Stock Still a Buy After Earnings?
Walt Disney stock is down Wednesday after the entertainment and media company beat fiscal 2025 first-quarter expectations. Here's what you need to know.


Walt Disney (DIS) stock is down Wednesday even though the entertainment and media company beat top- and bottom-line expectations for its fiscal 2025 first quarter and reiterated its full-year outlook.
In the quarter ending December 28, Disney's revenue increased 4.8% year over year to $24.7 billion, led by 8.9% growth in its Entertainment segment to $10.9 billion. Earnings per share (EPS) rose 44.3% from the year-ago period to $1.76.
"Our results this quarter demonstrate Disney's creative and financial strength as we advanced the strategic initiatives set in motion over the past two years," said CEO Bob Iger in a statement.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Iger cited "outstanding box office performance" during the quarter, including the top three movies of 2024, and improved profitability of Disney's Entertainment direct-to-consumer (DTC) streaming businesses.
Indeed, it's the first time Disney has reported a first-quarter profit for its direct-to-consumer segment. And fewer subscribers left than anticipated following a price increase in October.
The CEO also noted "an important step to advance ESPN's digital strategy by adding an ESPN tile on Disney+" and strategic investments in the "enduring appeal" of Disney's Experiences segment.
The results topped analysts' expectations. Wall Street was anticipating revenue of $24.6 billion and earnings of $1.45 per share, according to CNBC.
Disney ended the first quarter with 124.6 million Disney+ subscribers, down from 125.3 million at the end of the fourth quarter, and 53.6 million Hulu subscribers, up from 52 million.
Disney's reiterated outlook for 2025 calls for high-single digit EPS growth compared to 2024.
"Overall, this quarter proved to be a strong start to the fiscal year," Iger added, "and we remain confident in our strategy for continued growth."
Is Disney stock a buy, sell or hold?
Disney stock continues to recover after a rough patch during the middle of 2024 and has outperformed the S&P 500 with a 27% gain vs 14% for the index over the trailing six months. And Wall Street is bullish on the Dow Jones stock.
According to S&P Global Market Intelligence, the average analyst target price for DIS stock is $124.56, representing implied upside of more than 10% to current levels. And the consensus recommendation is a Buy.
Financial services firm BofA Securities is one of the most bullish outfits on the blue chip stock with a Buy rating and $140 price target.
"DIS reported a solid fiscal first quarter with operating income coming in above our expectations while revenue was modestly below," writes BofA Securities analyst Jessica Reif Ehrlich in a note this morning.
According to Ehrlich, near-term catalysts for Disney include a profitability inflection in DTC and a reacceleration in the Parks business as well as a strong film slate that drives growth across DTC, Parks and Consumer Products.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
By David Dittman
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?
Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
By Kelley R. Taylor
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
By David Dittman
-
Social Security Is Taxable, But There Are Workarounds
If you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
By Todd Talbot, CFP®, NSSA, CTS™
-
Serious Medical Diagnosis? Four Financial Steps to Take
A serious medical diagnosis calls for updates of your financial, health care and estate plans as well as open conversations with those who'll fulfill your wishes.
By Thomas C. West, CLU®, ChFC®, AIF®
-
What Wall Street's CEOs Are Saying About Trump's Tariffs
We're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
By Karee Venema
-
To Stay on Track for Retirement, Consider Doing This
Writing down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
By Matt Green, Investment Adviser Representative
-
How to Make Changing Interest Rates Work for Your Retirement
Higher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
By Phil Cooper
-
When to Sell Your Stock
Knowing when to sell a stock is a major decision investors must make. While there's no one correct answer, we look at some best practices here.
By Charles Lewis Sizemore, CFA
-
Within Five Years of Retirement? Five Things to Do Now
If you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
By Evan T. Beach, CFP®, AWMA®