Walt Disney ($DIS) reports fiscal second quarter earnings Wednesday morning, before the market opens. The conference call is set for 8:30 am ET.
It’s a big moment — not just for the numbers, but because it marks the first earnings report under new CEO Josh D’Amaro, who took over from Bob Iger on March 18.
Analysts polled by FactSet expect adjusted EPS of $1.49 on revenue of $24.87 billion. That compares to $1.45 EPS and $23.62 billion in revenue a year ago.
DIS stock is down 12% so far in 2026, currently trading around 15 times expected fiscal 2026 earnings — well below its five-year average.
Disney’s streaming business is the main event for Wall Street. Operating income for the direct-to-consumer segment — which includes Disney+ and Hulu — is forecast to jump more than 50% year-over-year, hitting around $525 million.
Disney itself guided for SVOD operating income of approximately $500 million in Q2, an increase of roughly $200 million compared to Q2 fiscal 2025.
Raymond James upgraded Disney to Outperform last month, setting a $115 price target. The firm called the current valuation “historically cheap” and said the streaming business accounts for the majority of Disney’s operating income growth.
Barclays took a more cautious tone, trimming its price target to $130 from $140, though it kept an Overweight rating. The firm flagged both cyclical and company-specific risks across the media sector.
On the parks side, Disney flagged modest growth in its Experiences segment. The company cited international visitation headwinds at domestic parks, pre-launch costs for Disney Adventure at Disney Cruise Line, and pre-opening costs for World of Frozen at Disneyland Paris.
Sports is also facing some pressure. Disney guided for Sports revenue comparable to last year, with segment operating income expected to decline by $100 million due to higher rights expenses.
D’Amaro hasn’t wasted time since taking the top job. Last month, Disney announced roughly 1,000 layoffs, mostly tied to a restructuring of its marketing operations under chief marketing and brand officer Asad Ayaz.
The cuts hit marketing functions across Disney’s studios, TV networks, ESPN, product and technology, and corporate groups.
Dana Walden was named president and chief creative officer alongside D’Amaro’s appointment. Bob Iger remains as a senior advisor and board member until his retirement on December 31.
The Entertainment segment operating income is expected to come in comparable to Q2 fiscal 2025, per Disney’s own guidance.
Wall Street will be watching closely to see if D’Amaro offers any updated full-year guidance or signals a change in strategic direction.
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