Key Highlights
- Walt Disney unveils fiscal Q2 results Wednesday morning, marking Josh D’Amaro’s debut earnings release as CEO
- Wall Street consensus calls for adjusted earnings per share of $1.49–$1.50 with approximately $24.87 billion in revenue
- Direct-to-consumer segment (Disney+ and Hulu combined) projected to deliver operating income growth exceeding 50% year-over-year, reaching roughly $525 million
- Shares of DIS have declined 12% year-to-date in 2026, with current valuation at 15x forward earnings — significantly beneath its historical five-year average
- Recent analyst moves include Raymond James upgrade to Outperform ($115 target) while Barclays reduced its price objective to $130 from $140
The Walt Disney Company ($DIS) is scheduled to release its fiscal second quarter financial results Wednesday before the opening bell. Management will host an earnings conference call at 8:30 am Eastern Time.
This quarterly report carries added significance beyond typical financial metrics — it represents the inaugural earnings announcement under new Chief Executive Officer Josh D’Amaro, who assumed the top position from Bob Iger on March 18.
Wall Street consensus estimates from FactSet survey indicate expectations for adjusted earnings per share of $1.49 alongside revenue totaling $24.87 billion. These projections compare against prior year results of $1.45 in adjusted EPS and $23.62 billion in total revenue.
Shares of DIS have fallen 12% during 2026 to date, currently valued at approximately 15 times projected fiscal 2026 earnings — substantially lower than its five-year historical average multiple.
Disney’s streaming operations remain the primary focus area for investors. The direct-to-consumer division — encompassing both Disney+ and Hulu platforms — is anticipated to report operating income gains surpassing 50% on a year-over-year basis, approaching $525 million.
Management previously issued guidance indicating SVOD operating income would reach approximately $500 million for Q2, representing an improvement of roughly $200 million versus the second quarter of fiscal 2025.
Wall Street Perspective
Raymond James elevated its rating on Disney shares to Outperform during the previous month, establishing a $115 price objective. The investment firm characterized the present valuation as “historically cheap” and highlighted that streaming operations contribute the lion’s share of Disney’s operating income expansion.
Barclays adopted a more measured stance, reducing its price target from $140 down to $130 while maintaining an Overweight recommendation. The firm pointed to both cyclical challenges and company-specific concerns impacting the broader media landscape.
Regarding theme parks, Disney projected moderate expansion within its Experiences division. Company commentary referenced challenges from international visitor softness at U.S. locations, preliminary expenses associated with the Disney Adventure cruise ship launch, and pre-opening investments for the World of Frozen attraction at Disneyland Paris.
The Sports segment faces additional headwinds. Management guidance indicated Sports revenue would remain relatively flat compared to last year, with segment operating income anticipated to contract by $100 million driven by elevated rights fee obligations.
Leadership Actions Under New CEO
D’Amaro has moved swiftly since taking command. Last month, Disney implemented workforce reductions affecting approximately 1,000 positions, primarily concentrated within a reorganization of marketing functions led by chief marketing and brand officer Asad Ayaz.
The personnel reductions impacted marketing teams spanning Disney’s studio operations, television networks, ESPN, product development and technology divisions, plus corporate departments.
Dana Walden received the appointment as president and chief creative officer concurrent with D’Amaro’s elevation to CEO. Bob Iger continues serving in an advisory capacity as senior advisor and board member through his planned retirement date of December 31.
The Entertainment segment’s operating income is projected to land comparable to Q2 fiscal 2025 levels, according to the company’s own forecast.
Investors will pay particular attention to whether D’Amaro provides revised full-year guidance or indicates any strategic pivots during Wednesday’s earnings call.
