DIS Stock Dazzles After Double Q2 Beat: Goldman Sachs Still Sees Room For A 51% Rally

• Goldman Sachs raised the price target on Disney to $164 from $151 and kept a ‘Buy’ rating on the shares.
• Disney, in its latest earnings results reported on Wednesday, posted an EPS of $1.57 on revenue of $25.2 billion, beating Wall Street estimates.
• The company also forecast double-digit earnings growth in 2027.

Shares of The Walt Disney Co. (DIS) closed up more than 7.5% on Wednesday in its best single-day performance in a year after it posted higher-than-expected revenues and earnings for the second quarter (Q2) of 2026.

Following the results, Goldman Sachs raised its price target on Disney to $164 from $151 and maintained a ‘Buy’ rating on the shares, indicating upside potential of more than 51% from its last close.

Goldman’s Optimism On Disney

Goldman Sachs said that Disney’s Q2 results and its new CEO's vision were catalysts that provided greater clarity on the company’s earnings growth inflection in the second half of the year. They also position Disney as a quality earnings compounder with underlying double-digit earnings per share growth in fiscal year 2027 and beyond, the analyst said, according to TheFly.

Disney, in its latest earnings results reported on Wednesday, posted an EPS of $1.57 on revenue of $25.2 billion, beating Wall Street estimates. The company also forecast double-digit earnings growth in 2027.

Josh D'Amaro, who took over as CEO of The Walt Disney Company in March, succeeding Bob Iger, has maintained that the company's goal is to drive long-term growth by transforming Disney+ into an interactive "digital centerpiece" that unites streaming, games, and experiences. In the earnings call, D'Amaro said Disney would continue to strengthen its streaming business, capitalize on live sports, and invest in its theme parks and cruise lines.

Goldman Sachs also highlighted Disney’s cruise business, noting that despite adding 40% cruise capacity, the company has maintained booked occupancy in line with year-over-year, which should abate concerns around industry cruise supply increases hurting utilization.

Wall Street Consensus On DIS

Meanwhile, DIS stock has a 12-month average price target of $128.25, according to Koyfin data, indicating upside potential of more than 18%. Of the 31 analysts covering the stock, 27 have a rating of ‘Buy’ or higher, with 3 rating it a ‘Hold’ and only 1 rating it a ‘Sell.’

Retail Stance On Disney Stock

On Stocktwits, retail sentiment around DIS stock improved from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours amid a 213% increase in message volumes, as per data from the platform.

DIS stock has climbed nearly 6% in the last year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.