On January 16, leading Wall Street analysts revised their full-year earnings estimates for The Walt Disney Company, projecting EPS of $5.47 for fiscal 2026, down from prior consensus of $5.68. The downward revisions reflect a 0.5% year-over-year revenue decline in the most recent quarter to $22.46 billion, slightly below the average analyst forecast of $22.78 billion. Key drivers include softer theme-park attendance in Asia and lower advertising revenue in the U.S. television segment. At current valuations, Disney’s forward P/E of 16.2 is now trading at a 15% discount to its five-year historical average, raising questions about near-term upside until content licensing and direct-to-consumer margins improve.

In its latest Form 13F filing, SG Americas Securities LLC disclosed a near-complete exit from Disney, selling 2.63 million shares in the third quarter and reducing its position to just 3,710 shares, worth $425,000 at quarter end. This dramatic cut contrasts with the firm’s prior holding of 2.64 million shares and signals concerns over Disney’s current cash flow generation and capital allocation priorities. The sale represents the largest single reduction among institutional investors during the quarter and accounted for approximately 1.3% of Disney’s average daily trading volume for that period.

While some institutions are trimming exposure, others remain confident in Disney’s long-term prospects. Cullen/Frost Bankers Inc. added 8,031 shares in the third quarter, lifting its total stake to 242,745 shares valued at $27.8 million, a 3.4% increase quarter-over-quarter. Meanwhile, Vanguard Group boosted its holding by 1.1%, acquiring 1.64 million additional shares to reach 157.5 million shares, now worth $19.53 billion. These increases offset some of the outflows from other funds and underscore ongoing faith in Disney’s diversified media portfolio and planned international park expansions.