Disney stock (DIS) is braces itself for its earnings debut under its new leadership as the company prepares to release its second-quarter earnings report tomorrow morning, May 6, 2026. Investors are closely watching to see if the House of Mouse can maintain its streaming momentum while facing new challenges in its world-famous theme parks. Currently, analysts expect the entertainment giant to report revenue of approximately $25 billion and earnings per share of $1.49.
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Investors Are Looking at Disney’s Streaming Profitability
The biggest story for investors tomorrow will be the health of Disney+ and Hulu. Management has set a goal for these services to reach a 10% profit margin by the end of the year. To start, the company needs to show that it can consistently make money from streaming after years of heavy spending. Experts predict the streaming division will report a profit of about $500 million for this quarter, which would be a significant $200 million increase from the same time last year.
Experiences Segment Faces a Temporary Slowdown
While streaming is improving, the company’s cash cow, the Parks and Experiences division, is showing some signs of fatigue. Specifically, analysts are worried about a drop in international visitors to domestic parks and rising costs from new projects. For instance, Disney is currently spending money to prepare for the launch of its newest ship, the Disney Adventure, which is weighing on short-term profits.
Even with these hurdles, the parks remain the primary driver of money for the company, accounting for nearly 68% of total operating profit in recent months. To stay ahead, the company is turbocharging this segment with new lands and characters based on popular movies like Toy Story and The Mandalorian. Investors will be listening closely tomorrow for any updates on how these investments are affecting attendance.
New CEO D’Amaro Must Lead Disney Forward
Moving to the corporate side, this report is a major milestone for the newest leader of the company. Josh D’Amaro officially took the top spot on March 18, 2026, following the departure of Bob Iger. This earnings call will be his first big chance to speak directly to shareholders and explain his vision for the future of the company.
Consequently, the pressure is on the new leadership to show that they can keep costs under control while still growing. The company recently took the difficult step of cutting about 1,000 jobs across its various divisions to save money. These cuts represented about 1% of the total workforce. Furthermore, the company is spending $7 billion to buy back its own shares. This move is intended to make the stock more attractive to investors who might be nervous about the change at the top.
Is Disney Stock a Buy or Sell?
Turning to the Street, Disney stock (DIS) boasts a Strong Buy consensus, based on 11 Buys and one Hold recommendation. The average 12-month DIS stock price target is $132.09, implying a 30.4% upside from the current price.
