Disney Shares Lag the Market, but Earnings Offer a Counterpoint

Disney shares were down more than 7% in 2026 through Sept. 22, extending a long stretch of weak returns as the S&P 500 climbed. The stock closed at $103.86 that day, while the index’s total return for the year stood at 14.4%, according to market data.

The gap is part of a longer pattern. Disney has lost nearly 40% over five years and gained only about 15% over the past decade, weighing on its valuation. Barchart’s figures put the stock’s forward price-to-earnings ratio at 15.4, below roughly 19 for the S&P 500.

That price weakness contrasts with Disney’s latest results. In fiscal third-quarter results released Aug. 5, revenue rose 7% to $25.2 billion, while adjusted earnings per share increased 28% to $2.06. Segment operating income climbed 21% to $5.6 billion.

Parks and streaming helped drive growth, though not every business improved. Experiences operating income rose 20%, and streaming subscription revenue increased 15%. Sports operating income fell 17%, which Disney attributed partly to playoff timing and a network dispute.

The risks remain. Traditional television faces a structural decline, streaming subscriber growth has cooled from its pandemic-era surge, and Disney is investing heavily in parks. The company has described a $60 billion, 10-year investment plan for its parks and cruise businesses.

Disney’s management has also laid out growth targets. The company expects adjusted earnings per share to rise about 12% in fiscal 2026, excluding the effect of an extra week, and forecast double-digit growth in fiscal 2027. It also raised its fiscal 2026 share-repurchase target to at least $9 billion.

Barchart’s analyst survey showed 27 of 32 analysts rating the stock a Strong Buy or Moderate Buy, with an average price target of $127.87. That optimism offers one potential reason to consider shares, but the company still needs to turn earnings growth into returns that narrow its market gap.