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

Disney (DIS) is scheduled to report results of its fiscal first quarter before the market opens on May 6, with a conference call scheduled for 8:30 am ET. What to watch for:

GUIDANCE: Along with its last report, Disney provided Q2 segment guidance, saying it expects: Entertainment operating income comparable to 2Q25; SVOD operating income of approximately $500M, an increase of approximately $200M compared to Q2 fiscal 2025; Sports revenue comparable to 2Q25, and a decline in segment OI of $100M reflecting higher rights expenses, and; Modest Experiences segment OI growth, due to a combination of factors, including international visitation headwinds at our domestic parks, pre-launch costs for the Disney Adventure at Disney Cruise Line and pre-opening costs for World of Frozen at Disneyland Paris. Meanwhile, Wall Street expects Disney to report Q2 earnings per share of $1.50 on revenue of $24.83B.

NEW CEO: Disney announced in February that, in a unanimous vote, it elected Disney Experiences chairman Josh D’Amaro to become CEO, effective at the upcoming annual meeting on March 18, when he will succeed Disney CEO Robert Iger. The board also intends to appoint D’Amaro as a director immediately following that meeting. Concurrent with D’Amaro’s appointment, Dana Walden, co-chairman of Disney Entertainment, has been named president and chief creative officer of Disney, also effective March 18. Bob Iger upon transition will continue to serve as senior advisor and a member of the Disney Board until his retirement from the company on December 31.

RAYMOND JAMES UPGRADE: Early last month, Raymond James upgraded Disney to Outperform from Market Perform with a $115 price target The current macro backdrop and Disney’s international visitation headwinds provide an opportunity to invest at a “very attractive valuation,” the analyst tells investors in a research note. The firm believes Disney shares are “historically cheap even in some of the more draconian scenarios” it stress tested. Raymond James points out the company’s streaming business represents the majority of its operating income growth. It sees Disney’s risk/reward as attractive at current levels.

BARCLAYS: Meanwhile, Barclays last month lowered the firm’s price target on Disney to $130 from $140 and maintained an Overweight rating on the shares. The firm adjusted targets in the media group as part of a Q1 earnings preview. There are “idiosyncratic and cyclical risks abound” for the sector, which may keep investors “positioned defensively in high visibility names despite valuation,” the analyst tells investors in a research note.

JOB CUTS: Last month, Variety reported that Disney was making layoffs in an effort to “streamline” its operations, slashing roughly 1,000 roles in the process, according to a memo to staff from new CEO Josh D’Amaro. The layoffs are mainly a result of the company’s formation of a consolidated marketing unit under the leadership of chief marketing and brand officer Asad Ayaz, the author said, citing a source familiar with the situation. The job cuts will impact marketing functions across Disney’s studios, TV networks, ESPN, product and technology, and corporate groups, the author noted.