Disney (DIS) Stock: What Wall Street Expects from Earnings Wednesday

TLDR

• Disney reports Q2 2026 earnings Wednesday morning, May 6, with analysts expecting ~$25 billion in revenue and EPS of $1.49
• Streaming profitability is the key focus — Disney+ and Hulu are targeting a 10% profit margin by year-end, with ~$500M profit expected this quarter
• The Parks and Experiences division faces short-term pressure from lower international visitor numbers and costs tied to new projects
• New CEO Josh D’Amaro, who took over March 18, faces his first earnings call since replacing Bob Iger
• Disney stock carries a Strong Buy consensus with an average price target of $132.09, implying ~30% upside from current levels

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Disney heads into Wednesday’s earnings report with a new CEO, a streaming business finally making money, and a parks division feeling some short-term pressure. Here’s what to watch.

The Walt Disney Company, DIS

Analysts expect Disney to report Q2 2026 revenue of approximately $25 billion, with earnings per share of $1.49. The stock is currently trading around $101.70, up 5.6% over the past month.

The market is pricing in revenue growth of about 5.2% year on year — the same rate Disney posted last quarter, but down from the 7% growth recorded in Q2 2025.

Streaming Margins Take Center Stage

The biggest number investors are watching isn’t revenue — it’s streaming margin. Disney+ and Hulu are targeting a 10% operating profit margin by year-end, and Wednesday’s report is the next checkpoint.

Analysts expect the streaming division to post roughly $500 million in profit this quarter. If accurate, that would be around $200 million more than the same period last year.

That kind of improvement matters. Disney spent years burning cash on streaming, and Wall Street wants to see that the investment is paying off in a consistent, repeatable way.

Parks Face a Speed Bump

The Experiences segment — Disney’s biggest profit driver — is showing some strain. Analysts are watching for a dip in international visitors to domestic parks, along with higher costs from ongoing development projects.

One specific drag: the upcoming launch of the Disney Adventure cruise ship, which is pulling forward spending and weighing on near-term margins.

Despite the pressure, parks still account for nearly 68% of total operating profit. Disney is also plowing money into new themed lands based on Toy Story and The Mandalorian, and investors will want to hear whether those investments are moving attendance numbers.

Disney has missed Wall Street’s revenue estimates more than once over the past two years. The consumer discretionary sector has generally had a good month, with peer stocks up 4.4% on average. Rush Street Interactive and Monarch both beat estimates and rallied double digits after reporting.

D’Amaro’s First Test

Wednesday is also Josh D’Amaro’s first earnings call as CEO. He officially took the job on March 18, following Bob Iger’s departure.

D’Amaro’s early moves have included cutting roughly 1,000 jobs — about 1% of the workforce — and authorizing a $7 billion share buyback program.

The buyback is a clear signal to investors that management believes the stock is undervalued at current prices.

Analyst sentiment backs that view. Disney carries a Strong Buy consensus based on 11 Buy ratings and one Hold. The average 12-month price target sits at $132.09, about 30% above where the stock trades today. The more conservative estimate from analysts tracking near-term expectations puts the target at $128.25.

Disney reports before the market opens on Wednesday, May 6, 2026.

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