Burbank, California-based The Walt Disney Company (DIS) operates as an entertainment company worldwide. Valued at $188.3 billion by market cap, the company's businesses include, media networks, parks and resorts, studio entertainment, consumer products, and interactive media. The entertainment giant is expected to announce its fiscal second-quarter earnings for 2026 before the market opens on Wednesday, May 6.

Ahead of the event, analysts expect DIS to report a profit of $1.49 per share on a diluted basis, up 2.8% from $1.45 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect DIS to report EPS of $6.61, up 11.5% from $5.93 in fiscal 2025. Its EPS is expected to rise 9.4% year over year to $7.23 in fiscal 2027. 

DIS stock has underperformed the S&P 500 Index’s ($SPX) 34.9% gains over the past 52 weeks, with shares up 25.3% during this period. Similarly, it underperformed the State Street Communication Services Select Sector SPDR ETF’s (XLC) 32% gains over the same time frame.

DIS lagged as tighter immigration policy cut high-spend international park traffic, while linear TV declines outpaced streaming gains. Its subscriber growth stalled even as Netflix, Inc. (NFLX) added 23 million members last year. Entertainment profits fell on high content/marketing costs, and ESPN slipped due to rights inflation, sub losses, and distribution issues. Furthermore, DIS’ soft Q2 guidance and margin pressure from streaming investments, expansion, and turnarounds further weighed on sentiment.

Analysts’ consensus opinion on DIS stock is bullish, with a “Strong Buy” rating overall. Out of 31 analysts covering the stock, 21 advise a “Strong Buy” rating, five suggest a “Moderate Buy,” four give a “Hold,” and one recommends a “Strong Sell.” DIS’ average analyst price target is $131.64, indicating a potential upside of 23.8% from the current levels.