Disney Earnings Are Coming Up. The Stock Is on a Tear.

Jamie Lee Curtis at the U.K. premiere of Disney’s Freakier Friday. (Kate Green/Getty Images for The Walt Disney Company Limited)

Walt Disney stock has been on a stellar run. Earnings are due ahead of Wednesday’s opening bell and could be the difference maker for the stock’s rally.

Analysts are expecting the House of Mouse to report an adjusted profit of $1.45 a share on revenue of $23.7 billion for its fiscal third quarter, according to FactSet. A year ago, the company posted adjusted earnings of $1.39 a share on revenue of $23.2 billion.

Shares are finally showing signs of life after a decade of stagnation. They have gained 46% since April 8, when markets started rebounding from the shock triggered by President Donald Trump’s April 2 tariff announcement. Video streamer Netflix has climbed 35% over the same period, and the S&P 500 has added 27%.

Created with Highcharts 9.0.1Source: FactSet

Created with Highcharts 9.0.1Walt Disney Co.Netflix Inc.May 2025Aug.0102030405060%

Disney’s theme parks are its main attraction. The experiences division, which includes the company’s parks, accounted for 59% of the total operating profit of $15.6 billion last year. Analysts expect the division’s operating income to come in at $1.99 billion in the quarter, according to FactSet, which would be a 12% increase from a year ago.

Some investors think Disney has a better chance than many of its rivals to carve out a market for itself in streaming thanks to a vast library of content. Analysts expect quarterly operating income for the company’s direct-to-consumer streaming business of $201 million. A year ago, the division posted an operating loss of $19 million. Wall Street projects that Disney+ added about 2.8 million subscribers over the quarter, per FactSet.

Those two factors could drive double-digit adjusted earnings growth over the next few years, Morgan Stanley analyst Benjamin Swinburne said in a research note published on Monday. Swinburne, who rates the stock at Overweight, also raised his price target on shares to $140 from $120. Shares were hovering around $118 in Tuesday trading.

If Disney can beat on the top- and bottom-lines, and top those projections for parks and streaming, that price target may be in reach.

Write to George Glover at george.glover@dowjones.com