Full Breakdown
Disney Prepares for Q2 FY2026 Earnings: First Earnings Call Under CEO Josh D’Amaro
5/6/2026, 8:14:38 AM
Background & CEO Transition
Josh D’Amaro, formerly chairman of Disney Experiences, assumed the chief-executive role in March, succeeding Bob Iger after two decades at the helm. Within weeks, D’Amaro oversaw a round of layoffs and faced heightened political scrutiny over late-night host Jimmy Kimmel. The upcoming May 6 earnings call will be his first opportunity to defend the company’s performance to investors.
Market Context & Recent Challenges
Disney’s outlook is shaped by three external pressures. First, the February-onset war in Iran and the resulting surge in oil prices have raised travel costs, dampening international visitation to Disney’s global parks. Second, a broader shift from pay-TV bundles to streaming continues to erode linear-TV ad and affiliate revenue, while the streaming market consolidates around a few large players. Third, industry chatter about a possible Paramount+–HBO Max merger could reshape competitive dynamics for Disney+.
Data & Forecasts
Analyst projections for the quarter vary: LSEG expects revenue of $24.78 billion with EPS $1.49; AD HOC News cites $25.03 billion and the same EPS; TradingView reports Disney’s prior quarter revenue of $25.98 billion, a 5.2 % year-over-year rise. Wall Street consensus anticipates modest top-line growth of roughly 5 % and EPS around $1.50, a 3 % increase from the prior year. By contrast, the market had expected $1.65 per share three months earlier. Disney’s stock trades near $101.70, down 11 % YTD, flat over three years and 42 % below its level a year ago, while analysts’ average price target sits at $128.25.
Official Statements & Guidance
In February, Disney guided “modest” operating-income growth for its Experiences division, citing international visitation headwinds. The company also reaffirmed a target of at least 10 % operating profit for the second half of FY2026. Analysts echo this cautious tone, projecting revenue growth of 5–6 % and EPS near $1.49–$1.50. Forrester research director Mike Proulx notes that “streaming is still the main event, but the market is consolidating.”
Criticism & Opposition
Critics highlight Disney’s recent layoffs and the political backlash surrounding Jimmy Kimmel as signs of internal strain. Observers also question the decision to stop reporting detailed entertainment-segment revenue and streaming-subscriber figures, arguing that reduced transparency hampers investor assessment. Additionally, the looming consolidation of streaming rivals intensifies competitive pressure on Disney+.
Conflicting Reports & Gaps
Revenue forecasts differ by up to $1.2 billion across sources, and EPS expectations range from $1.49 to $1.65. Disney’s cessation of segment-level reporting leaves a gap in understanding the relative performance of TV, streaming, and theatrical releases. No firm data on current Disney+ subscriber counts are available.
Verbatim Quotes
- “This earnings call marks Disney's first real gut-check under D'Amaro's leadership, and a test of how his theme-parks roots translate, or don't, into the rest of the business,” — Mike Proulx, Research Director, Forrester
- “Theme Parks are doing about the same but we’re excited about them.” — Bob Iger, Former CEO
- “50 a share in earnings, a mere 3% year-over-year uptick.” — Equity analysts
- “65 a share for the fiscal second quarter just three months ago.” — Wall Street consensus
- “Streaming is still the main event, but the market is consolidating.” — Industry analyst (Forrester)
What’s Next
The earnings call on May 6 will reveal whether Disney can meet modest growth expectations amid geopolitical and market headwinds. Investors will watch for any adjustments to guidance, announcements of cost-saving measures such as stock buybacks or dividend changes, and updates on strategic moves like the potential Paramount+–HBO Max combination.
