Here’s what Wall Street is saying about Disney ahead of earnings

Disney (DIS) is scheduled to report results of its fiscal firs quarter before the market opens on February 2, with a conference call scheduled for 8:30 am ET. What to watch for:

WALL STREET ESTIMATES: Wall Street expects Disney to report Q1 earnings per share of $1.58 on revenue of $25.6B.

CEO PLAN: In a regulatory filing last week, Disney chairman of the board James Gorman said the media giant expects to announce the appointment of its next CEO in early 2026. “Management succession planning remains a top priority for the Board, reflecting its importance to business continuity and long-term shareholder value,” Gorman said. “Oversight of the process is led by our dedicated Succession Planning Committee, and all directors have actively participated in a rigorous and ongoing evaluation of potential successor candidates, including direct engagement, performance assessment and consideration of leadership capabilities aligned with the company’s long-term strategy. The appointment of the next CEO will be determined by the full Board, and we currently expect to announce the appointment of the company’s next CEO in early 2026.”

SORA AI: In early December, Disney and Microsoft-backed (MSFT) OpenAI reached an agreement for Disney to become the “first major content licensing partner” on Sora, OpenAI’s short-form generative AI video platform, the companies announced. “As part of this new, three-year licensing agreement, Sora will be able to generate short, user-prompted social videos that can be viewed and shared by fans, drawing from a set of more than 200 animated, masked and creature characters from Disney, Marvel, Pixar and Star Wars, including costumes, props, vehicles, and iconic environments. In addition, ChatGPT Images will be able to turn a few words by the user into fully generated images in seconds, drawing from the same intellectual property. The agreement does not include any talent likenesses or voices. Alongside the licensing agreement, Disney will become a major customer of OpenAI, using its APIs to build new products, tools, and experiences, including for Disney+, and deploying ChatGPT for its employees. As part of the agreement, Disney will make a $1 billion equity investment in OpenAI, and receive warrants to purchase additional equity. Under the agreement, Disney and OpenAI are affirming a shared commitment to the responsible use of AI that protects user safety and the rights of creators. Together, the companies will advance human-centered AI that respects the creative industries and expands what is possible for storytelling. The transaction is subject to the negotiation of definitive agreements, required corporate and board approvals, and customary closing conditions,” Disney stated

CITI CUTS PT: Earlier this month, Citi lowered the firm’s price target on Disney to $140 from $145 and maintained a Buy rating on the shares. The firm sees headwinds from the Fubo (FUBO) acquisition but expects the focus to be on ESPN Unlimited’s growth.

PHILLIPS INITIATION: Also this month, Phillip Securities initiated coverage of Disney with an Accumulate rating and $130 price target. The firm said the company’s “unrivalled” intellectual property supports “strong consumer engagement across platforms.” Disney is well positioned to monetize its IP, which should drive long-term revenue growth, the analyst tells investors in a research note.

WELLS FARGO: Wells Fargo added Disney to the firm’s Q1 2026 Tactical Ideas List in early January, saying Disney’s Q1 is heavy on peak days at Parks, which will showcase strong demand and assuage fears. The box office supports higher FY26 EPS, and a succession announcement is due, Wells adds. Taken together, the firm sees the stock higher on estimates plus a rerating. Wells has an Overweight rating on the shares with a price target of $152.