New York, Feb 3, 2026, 11:11 EST — Regular session
- Disney shares dropped 1.6% in early trading following the announcement that parks chief Josh D’Amaro will step in as the company’s next CEO.
- The move follows Disney’s warning yesterday about softening park demand and a negative free cash flow, even with revenue climbing.
- Investors are zeroing in on the March 18 leadership handover, weighing if streaming wins can offset the challenges facing legacy TV and film.
Shares of Walt Disney dropped $1.62, or 1.6%, to $102.83 on Tuesday, slipping further after the appointment of theme-park head Josh D’Amaro as the new CEO.
The board named D’Amaro, 54, to step in on March 18 as Bob Iger moves into a senior adviser role. On that same day, Disney promoted Dana Walden to president and chief creative officer, a filing revealed. (Securities and Exchange Commission)
Why it matters now: Disney is scrambling to settle on a succession plan that satisfies investors, even as it asks them to overlook softer cash flow. In its fiscal first-quarter update Monday, the company reported revenue up 5% to $25.98 billion, while adjusted earnings per share dropped to $1.63. Free cash flow swung to a negative $2.28 billion. Despite these results, Disney maintained its forecast that growth will pick up in the second half of the year. (Business Wire)
Disney emphasized continuity in its announcement about the CEO transition. Board chairman James Gorman described Josh D’Amaro as having “that rare combination of inspiring leadership and innovation,” while Bob Iger called him “the right person to take the helm.” (Business Wire)
D’Amaro takes the helm of a business still heavily reliant on parks and cruises, as it works to boost streaming into a more reliable profit source. “These are big boots to fill. Disney can ill afford another messy handover,” warned PP Foresight analyst Paolo Pescatore. (Reuters)
Several sell-side desks remain bullish on the stock’s earnings outlook. Morgan Stanley restarted coverage with an Overweight rating and a $135 target, predicting profit growth will accelerate in the latter half of fiscal 2026 as streaming gains momentum and the parks business remains strong. (Investing.com UK)
Traders remain focused on the weak spots that dragged Disney’s shares down Monday: the company flagged “international visitation headwinds” at its U.S. parks and warned of rising costs linked to cruise and park launches. That’s despite a forecast of roughly $500 million in streaming operating income next quarter.
The risk is clear-cut. Should park demand weaken more, or if the film slate and legacy TV keep underperforming, the streaming rebound might not come quickly enough to bridge the gap — leaving cash flow as the key indicator.
Peers aren’t sitting still. Streaming competition stays fierce, and any fresh wave of media deals would push content spending and distribution leverage even higher across the sector.
Disney investors are zeroing in on March 18 for the handover details and first clues on how D’Amaro will juggle parks’ strong momentum with Hollywood’s more tangled issues — cost control, talent deals, and the future of streaming margins.
