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Disney hits streaming profit milestone, boosts buyback, with 20% stock upside seen by analysts

Analyst Insights
12 May 2026
24/7 Wall Street
View Source
Bullish
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Disney reported a strong Q2 fiscal 2026 with streaming profitability achieved as operating income nearly doubled and subscription revenue grew 14%. The company raised its share buyback target to $8 billion and reaffirmed double-digit adjusted EPS growth guidance through fiscal 2027. Despite a decline in free cash flow due to tax and content costs, Disney's streaming revenue now surpasses linear TV revenue, and its Experiences segment continues to grow. Analysts remain bullish, seeing about 20% upside in Disney’s stock as streaming margins and cash flow improve.

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