Disney Shares Rise 8% After New CEO Outlines Growth Strategy

Walt Disney’s new Chief Executive Josh D’Amaro laid out the company’s strategy during its first-quarter earnings call on Wednesday. He said the entertainment company would remain committed to creative excellence, strengthen its streaming business, capitalize on the power of live sports and continue to invest in its theme parks and cruise lines.

“Our focus remains consistent — improve the consumer experience, deepen engagement, and continue building a healthy and more durable growth business,” D’Amaro said during the company’s first-quarter earnings call, his first at the helm of Disney. Investors responded by sending Disney’s stock up nearly 8 percent in early trading.

D’Amaro succeeded Bob Iger as Disney CEO in mid-March. He is steering the company through a consumer shift to streaming, the advent of artificial intelligence tools and a challenging economy affected by higher oil prices.

In a 10-page letter to shareholders, D’Amaro said he expected adjusted EPS growth for fiscal 2026, which ends in early October, to reach about 12 percent. He reiterated that Disney expects double-digit adjusted EPS growth for fiscal 2027. The entertainment giant reported adjusted earnings-per-share of $1.57 and revenue of $25.2 billion for the quarter ending in March.

Analysts on average had expected adjusted EPS of $1.49 and revenue of $24.78 billion.

The experiences division, which includes parks, cruise ships and consumer products, reported a 5 percent increase in operating income for the quarter. Guests spent more at US theme parks and cruise ships saw higher volume compared with the same period a year earlier.

Attendance at the company’s domestic theme parks was down in part because of a drop in international visitors and competition from Universal Epic Universe in Orlando, Florida. The company’s chief financial officer said growth is expected in the second half of the year.

At the entertainment unit, operating income rose by 6 percent to $1.34 billion. The increase came partly from higher subscription and advertising revenue from streaming services including Disney+. Movie box-office hits “Zootopia 2” and “Avatar: Fire and Ash” released last year continued to contribute during the quarter.

The sports division, home of ESPN, posted a 5 percent decrease in operating income to $652 million. The division incurred higher sports rights and production costs compared with a year earlier.

The chief financial officer said investors should view Disney’s television networks, including ESPN, as brands with studios that produce content that can be distributed broadly and monetized. He noted that ESPN is the world’s biggest sports media brand and remains an important contributor to the company’s portfolio.

Asked about the impact of artificial intelligence, D’Amaro said the technology offers meaningful long-term opportunities for Disney with the potential to make production more efficient. He added that human creativity would remain at the center of everything the company does.

D’Amaro reiterated that the company expected growth to accelerate in the second half of the fiscal year. The chief financial officer acknowledged economic uncertainties and noted the company is not immune from the impacts of rising gas prices.