Disney: Improving Fundamentals, Streaming Momentum, and FY26 Growth Framework Support Buy Rating

J.P. Morgan analyst David Karnovsky has maintained their bullish stance on DIS stock, giving a Buy rating yesterday.

David Karnovsky has given his Buy rating due to a combination of factors that underscore Disney’s improving fundamentals and supportive long‑term outlook. The company delivered adjusted EPS ahead of both his and the market’s expectations, even though segment operating income was broadly in line, signaling solid earnings leverage. Within Experiences, domestic parks performance and attendance modestly exceeded forecasts, and management reaffirmed high single‑digit operating income growth for the segment through FY26, backed by cruise ship additions and new attractions. He also highlights sustained double‑digit revenue growth in the streaming business, with direct‑to‑consumer SVOD margins tracking toward the 10% level by FY26 and benefiting from better pricing, product enhancements, and content performance.

Karnovsky also places weight on Disney’s reiterated FY26 financial framework, including double‑digit EPS growth, robust operating cash flow, and a $7 billion share repurchase plan, which together support shareholder returns and balance‑sheet flexibility. While near‑term guidance for Entertainment and Sports is somewhat conservative versus his own estimates, he views this as leaving room for upside as theatrical, streaming, and sports monetization improve in the back half of the year. Additionally, he notes progress on strategic initiatives such as the NFL media transaction, which enhances the company’s sports portfolio ahead of the ESPN direct‑to‑consumer pivot. Taken together, these elements lead him to see the current share price as attractive relative to Disney’s earnings growth trajectory and asset quality, justifying a Buy rating.

In another report released yesterday, UBS also maintained a Buy rating on the stock with a $138.00 price target.

Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DIS in relation to earlier this year.