Key Takeaways
- Walt Disney delivers Q2 fiscal results Wednesday morning—the first earnings release with Josh D’Amaro as CEO
- Wall Street consensus calls for earnings per share of $1.49–$1.50 with revenue around $24.87 billion
- Direct-to-consumer operating income (Disney+ and Hulu) projected to climb more than 50% versus prior year to approximately $525 million
- Shares of DIS have declined 12% year-to-date in 2026, with the stock trading at 15x forward earnings—under its five-year historical average
- Raymond James raised its rating to Outperform with a $115 target; Barclays reduced its price objective to $130 from $140
Walt Disney ($DIS) is scheduled to release its fiscal second quarter financial results Wednesday before markets open. The company’s earnings conference call will follow at 8:30 am Eastern Time.
This earnings announcement carries added significance as it represents the inaugural quarterly report delivered under the leadership of newly appointed CEO Josh D’Amaro, who assumed the role from Bob Iger on March 18.
Wall Street analysts surveyed by FactSet are projecting adjusted earnings per share of $1.49 alongside revenue of $24.87 billion. For comparison, the company posted $1.45 in EPS and $23.62 billion in revenue during the same quarter last year.
Shares of DIS have fallen 12% during the 2026 calendar year to date, currently valued at approximately 15 times anticipated fiscal 2026 earnings—significantly beneath its five-year valuation average.
Disney’s direct-to-consumer streaming operations represent the primary focus for investors this quarter. Operating income for the segment—encompassing both Disney+ and Hulu platforms—is anticipated to surge more than 50% on a year-over-year basis, reaching approximately $525 million.
The company previously issued guidance projecting SVOD operating income of about $500 million for Q2, representing an increase of roughly $200 million compared with the second quarter of fiscal 2025.
Analyst Perspectives and Price Targets
Raymond James elevated Disney to an Outperform rating last month, establishing a $115 price objective. The investment firm characterized the current stock valuation as “historically cheap” and noted that the streaming division represents the bulk of Disney’s operating income expansion.
Barclays adopted a more measured stance, lowering its price target from $140 to $130 while maintaining an Overweight rating. The firm highlighted both cyclical challenges and Disney-specific risks affecting the broader media industry.
Regarding the theme parks business, Disney projected modest expansion in its Experiences division. Management pointed to international visitor softness at U.S. properties, pre-launch expenditures for Disney Adventure within the Disney Cruise Line fleet, and pre-opening investments for the World of Frozen attraction at Disneyland Paris.
The Sports segment is also encountering headwinds. Disney’s guidance indicates Sports revenue will remain relatively flat compared to the prior year, with segment operating income expected to decrease by $100 million due to elevated rights fees.
New CEO’s Initial Actions
D’Amaro has moved quickly since assuming the chief executive position. Last month, Disney disclosed approximately 1,000 job eliminations, primarily connected to a reorganization of marketing operations under chief marketing and brand officer Asad Ayaz.
The workforce reductions affected marketing departments across Disney’s film studios, television networks, ESPN, product and technology divisions, and corporate functions.
Dana Walden received the title of president and chief creative officer concurrent with D’Amaro’s promotion. Bob Iger continues serving as a senior advisor and board member through his planned retirement date of December 31.
Disney’s Entertainment segment operating income is projected to match Q2 fiscal 2025 results, according to the company’s own forecasts.
Investors and analysts will pay particular attention to whether D’Amaro provides revised full-year guidance or articulates any strategic shifts during the earnings call.
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