D’Amaro Sets A Clear Direction
Walt Disney shares rose nearly 8% in early trading after new chief executive Josh D’Amaro outlined his strategy for the entertainment group. Speaking on his first earnings call as CEO, D’Amaro said Disney will remain focused on creative excellence, streaming growth, live sports, theme parks and cruise lines.
His message to investors centered on improving the consumer experience, deepening engagement and building a healthier, more durable growth business. The update comes as Disney navigates major shifts in media consumption, higher energy prices and changing travel patterns.
Results Beat Analyst Expectations
Disney reported adjusted earnings per share of 1.57 dollars for the January to March quarter, ahead of the 1.49 dollars expected by analysts surveyed by LSEG. Revenue reached 25.2 billion dollars, also above expectations of 24.78 billion dollars.
In a 10-page letter to shareholders, D’Amaro said he expects adjusted earnings per share growth of about 12% for fiscal 2026, which ends in early October. The company had previously guided for double digit growth and also reiterated expectations for double digit adjusted EPS growth in fiscal 2027.
Parks And Cruises Support Growth
The experiences division, which includes theme parks, cruise ships and consumer products, reported a 5% increase in operating income for the quarter. Disney said guests spent more at US theme parks and that cruise ships recorded higher volume than a year earlier.
Still, the division faces some pressure. Chief financial officer Hugh Johnston said attendance at domestic theme parks declined, partly because of fewer international visitors and competition from Universal Epic Universe in Orlando. He said Disney expects growth to improve in the second half of the year.
Energy Prices Create Consumer Risk
Johnston acknowledged that Disney is not immune to the broader economic environment. Rising gasoline prices could affect consumer behavior if they increase significantly, especially for families planning travel to theme parks or cruises.
This matters for investors because Disney’s experiences business has become a major earnings driver. Higher fuel costs can reduce discretionary spending, affect travel decisions and pressure margins across tourism, hospitality and consumer products.
ESPN Faces Higher Costs
Disney’s sports division, home to ESPN, reported a 5% decline in operating income to 652 million dollars. The company attributed the decline to higher sports rights and production costs compared with the same period a year earlier.
Johnston said investors should view Disney’s television networks, including ESPN, as brands with studios that create content and can distribute it broadly. He noted that streaming now generates twice the revenue of Disney’s traditional television business, which continues to shrink each quarter.
Streaming And AI Shape The Next Phase
The sports business is still earlier in its streaming transition, but Johnston emphasized that ESPN remains the world’s largest sports media brand and an important contributor to Disney’s portfolio. For Disney, the challenge is to convert brand strength into durable streaming economics while managing rising rights costs.
D’Amaro also addressed artificial intelligence, saying the technology offers meaningful long term opportunities and could make production more efficient. However, he stressed that human creativity will remain central to Disney’s business. For investors, the new CEO’s first major message was one of continuity with sharper execution: protect the creative engine, scale streaming, monetize sports and keep investing in experiences where Disney still has pricing power.
