Walt Disney ($DIS) is set to report its fiscal second-quarter 2026 earnings on Wednesday, May 6, before the market opens. This marks a pivotal report for the entertainment giant — it’s the first quarter under new CEO Josh D’Amaro, who replaced Bob Iger on March 18, and it comes as the company tries to prove its streaming pivot is finally delivering consistent profits.
Wall Street consensus, according to FactSet, calls for adjusted earnings per share of $1.49 on revenue of roughly $24.87 billion. That compares to $1.45 EPS and $23.62 billion in revenue in the same period last year. The stock, currently trading at about $101.70, is down 12% year-to-date and sits at a relatively low 15 times forward earnings — below its five-year average.
The single biggest focus for investors will be the direct-to-consumer segment, which includes Disney+ and Hulu. Analysts forecast streaming operating income to jump more than 50% year-over-year to around $525 million, up from Disney’s own guidance of approximately $500 million. This would represent about $200 million more than the same quarter last year, underscoring progress toward the company’s target of a 10% operating margin for the streaming business by the end of the fiscal year.
On the parks and experiences side, Disney is navigating near-term headwinds. The company flagged modest growth for the segment, citing softer international visitation at domestic parks, pre-launch costs for the upcoming Disney Adventure cruise ship, and pre-opening expenses for the World of Frozen attraction at Disneyland Paris. Despite these pressures, parks still account for nearly 68% of total operating profit, and Disney continues to invest heavily in new themed lands based on Toy Story and The Mandalorian.
Sports revenue is expected to be flat year-over-year, while segment operating income may decline by about $100 million due to higher sports rights costs. Meanwhile, the Entertainment segment’s operating income is forecast to be roughly in line with last year’s second quarter.
D’Amaro has already made moves to cut costs and signal confidence. Since taking over, he authorized about 1,000 layoffs — roughly 1% of the workforce — concentrated in marketing operations, and initiated a $7 billion share buyback program. The buyback suggests management views the stock as undervalued. Analysts largely agree: Disney carries a Strong Buy consensus with an average 12-month price target of about $132, implying ~30% upside. Raymond James recently upgraded the stock to Outperform with a $115 target, while Barclays trimmed its target from $140 to $130 but kept an Overweight rating.
Wednesday’s conference call at 8:30 a.m. ET will be closely watched not only for the quarterly numbers but also for any updated full-year guidance or strategic shifts under the new leadership.
