Disney (DIS) Q2 Earnings: Streaming Growth and New CEO D’Amaro Take Center Stage

Key Takeaways

• Disney’s Q2 fiscal results arrive Wednesday morning, marking CEO Josh D’Amaro’s inaugural earnings presentation
• Wall Street consensus points to earnings per share between $1.49 and $1.50, with revenue projected near $24.87 billion
• Direct-to-consumer operating income (Disney+ and Hulu combined) anticipated to surge more than 50% year-over-year, reaching approximately $525 million
• DIS shares have declined 12% year-to-date in 2026, with the stock trading at a 15x forward earnings multiple — significantly beneath its historical five-year average
• Wall Street remains divided: Raymond James upgraded shares to Outperform targeting $115, while Barclays reduced its price objective to $130 from $140

The Walt Disney Company ($DIS) is scheduled to unveil its fiscal second quarter financial results Wednesday morning ahead of the opening bell. Management will host an earnings call at 8:30 am Eastern Time.

The Walt Disney Company, DIS

This report carries added significance beyond typical quarterly metrics — it represents the inaugural earnings presentation under newly appointed CEO Josh D’Amaro, who assumed control 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. These figures represent growth from the prior year’s $1.45 EPS and $23.62 billion revenue performance.

Shares of DIS have retreated 12% during 2026 thus far, presently valued at approximately 15 times projected fiscal 2026 earnings — a substantial discount to its five-year historical average.

The Disney’s direct-to-consumer operations have emerged as Wall Street’s primary focus. Operating profit for the streaming segment — encompassing Disney+ and Hulu platforms — is projected to climb more than 50% compared to last year, reaching roughly $525 million.

Management previously issued guidance projecting SVOD operating income near $500 million for Q2, representing an increase of approximately $200 million versus the same quarter in fiscal 2025.

Wall Street Analyst Perspectives

Raymond James elevated Disney to Outperform status last month, establishing a $115 price objective. The investment firm characterized current valuation levels as “historically cheap” and emphasized that streaming operations now drive the majority of Disney’s operating income expansion.

Barclays adopted a more conservative stance, reducing its price target to $130 from a previous $140 level, while maintaining an Overweight recommendation. The firm highlighted both cyclical and company-specific challenges impacting the broader media landscape.

Regarding theme parks, Disney indicated modest expansion expectations for its Experiences division. Management pointed to reduced international visitor traffic at U.S.-based parks, launch expenses associated with Disney Adventure cruise operations, and preparation costs for the World of Frozen attraction at Disneyland Paris.

The Sports segment also confronts headwinds. Disney projected Sports revenue to remain flat compared to the prior year, with operating income expected to drop by $100 million driven by elevated broadcasting rights costs.

Initial Actions Under D’Amaro’s Leadership

D’Amaro has moved quickly since ascending to the CEO position. Last month, Disney revealed approximately 1,000 workforce reductions, primarily concentrated within a marketing department reorganization led by chief marketing and brand officer Asad Ayaz.

The staff reductions affected marketing teams throughout Disney’s film studios, television networks, ESPN operations, product development and technology divisions, and corporate administrative functions.

Dana Walden received promotion to president and chief creative officer concurrent with D’Amaro’s appointment. Bob Iger continues serving as senior advisor and board member through his planned retirement date of December 31.

The Entertainment division’s operating income is anticipated to match Q2 fiscal 2025 levels, according to Disney’s internal projections.

Investors and analysts will scrutinize whether D’Amaro provides updated full-year guidance or reveals any strategic pivots during Wednesday’s call.

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