Josh D'Amaro's first report as CEO highlights strong performance in streaming and parks
Category: Business
On a bright Tuesday morning in May, the trading floor of the New York Stock Exchange buzzed with excitement as Disney's stock surged following the company's impressive quarterly earnings report. Investors were eager to see how the entertainment giant would perform under new leadership, and the results did not disappoint. Disney's fiscal second quarter, marking the first full report under CEO Josh D'Amaro, revealed a solid rebound in both streaming and theme park revenues, providing a much-needed boost to the company's market position.
Disney reported adjusted earnings per share (EPS) of $1.57, surpassing Wall Street's expectations of $1.51, and revenue of $25.2 billion, which exceeded forecasts of $24.8 billion. The company’s total operating income reached $4.6 billion, up from $4.4 billion a year earlier. Shares climbed over 4% in premarket trading, signaling strong investor confidence in the new CEO's direction.
Josh D'Amaro, who took the helm from Bob Iger in mid-March 2026, has quickly set a strategic course for Disney. In a detailed 10-page letter to shareholders, D'Amaro highlighted his plans to invest in content and technology, emphasizing that the company is well-positioned to capitalize on current market trends. "We see a substantial opportunity to engage and entertain our fans more deeply in both digital and physical environments," D'Amaro stated.
Under D'Amaro's leadership, Disney aims for adjusted EPS growth of about 12% for the fiscal year ending in October, with a commitment to double-digit growth for the following year as well. This optimistic outlook is buoyed by a strong performance in Disney's experiences division, which includes theme parks and cruise lines, even as attendance at U.S. parks dipped by 1% during the quarter.
The results from Disney's various segments reveal a mixed picture. The experiences division reported a revenue decline to $9.5 billion, down from a record $10 billion in the previous quarter. This drop was attributed to lower attendance figures, yet the company noted a 5% increase in spending per customer on admissions, food, and merchandise. D'Amaro reassured investors that demand at U.S. parks remains strong, with expectations for improved attendance in the upcoming third quarter.
Meanwhile, the entertainment division, which encompasses Disney's film studio and streaming services, saw revenue rise by 10% to $11.72 billion. The streaming segment alone experienced a remarkable 13% growth, driven by strong performances from popular titles like Zootopia 2 and Avatar: Fire and Ash. This growth in streaming revenue is particularly notable as Disney continues to navigate a competitive media environment.
Not all news was positive, as Disney's sports division, home to ESPN, faced challenges during the quarter. Operating income fell by 5% to $652 million due to rising costs associated with sports rights and production. Nevertheless, revenue in this segment increased by 2% year over year, totaling $4.61 billion, indicating resilience in the face of financial pressures.
In his first quarterly report as CEO, D'Amaro laid out a long-term strategy focused on three key pillars: investing in intellectual property, reaching more consumers, and leveraging advanced technologies to boost storytelling and monetization. He acknowledged the potential impact of global economic uncertainty on consumer behavior but expressed confidence in the company's ability to adapt.
Ahead, D'Amaro's vision for Disney includes a commitment to enhancing the customer experience through innovative technologies. The company plans to explore opportunities in artificial intelligence and other digital advancements to streamline operations and engage audiences more effectively. This approach comes on the heels of Disney's decision to reevaluate its investment in OpenAI after the shutdown of its AI video-generation tool, Sora.
As Disney continues to evolve under D'Amaro's leadership, the focus will remain on adapting to changing consumer preferences and maximizing revenue across its diverse portfolio. The company has weathered numerous challenges in recent years, but the latest earnings report suggests that it is on a path to recovery and growth.
With D'Amaro at the helm, Disney is not just responding to current market dynamics but is also positioning itself for future success. The combination of strategic investments in content and technology, alongside a commitment to enhancing guest experiences, could pave the way for a revitalized Disney brand.
As the company prepares for the busy summer season, attention will turn to Disney to see if it can maintain this momentum and continue to meet investor expectations. The next quarterly report, set to be released in August, will be a key indicator of how well these strategies are taking root in the marketplace.
Disney's latest earnings report marks a promising start for Josh D'Amaro as CEO, highlighting the potential for a revitalized company ready to embrace the challenges of a rapidly changing entertainment industry.