New York, Feb 4, 2026, 13:04 EST — Regular session
- Walt Disney shares climbed roughly 3% in early afternoon trading, clawing back some losses after a steep drop following earnings.
- Disney announced that Josh D’Amaro will step in as CEO on March 18, while Dana Walden moves into a new top creative position as Bob Iger transitions to senior adviser.
- Traders are balancing a leadership shake-up with Disney’s forecast for streaming profits, park attendance, and a $7 billion share buyback program.
Walt Disney Co shares gained 3.1%, hitting $107.47 in early afternoon trading on Wednesday. The stock fluctuated between $103.63 and $108.58 throughout the session.
This move is crucial as Disney works to stabilize a business still grappling with cord-cutting and the hefty expense of scaling its streaming services. Investors are keen to see if the company can sustain its parks’ cash flow while shelling out for content and sports rights.
Disney announced Tuesday that Josh D’Amaro, currently leading its Experiences division, will step up as CEO at the March 18 annual meeting. Dana Walden is set to take the role of president and chief creative officer. Board chairman James Gorman described D’Amaro as “a rare combination of inspiring leadership and innovation.” (The Walt Disney Company)
The CEO shift comes just two days after Disney released its fiscal first-quarter numbers, with revenue climbing 5% to $26 billion and adjusted EPS hitting $1.63. Yet, total segment operating income dropped 9% to $4.6 billion, hit by rising entertainment costs. Disney’s subscription video-on-demand segment—covering paid streaming like Disney+ and Hulu—generated $450 million in operating income, and the company expects around $500 million next quarter. Disney also confirmed plans to buy back $7 billion of stock in fiscal 2026. “We are pleased with the start to our fiscal year,” Iger said. (Thewaltdisneycompany)
Disney’s earnings report shook investors at first. Shares dropped 7.4% Monday, driven by concerns over rising expenses and a cautious short-term forecast, despite the company posting record revenue from its theme parks. (MarketWatch)
Analysts remain divided on whether a parks executive is the best choice to head the wider media division, though many stress the importance of a smooth transition after Disney’s previous succession stumble. “Disney can ill afford another messy handover,” said PP Foresight analyst Paolo Pescatore. (Reuters)
Morgan Stanley has restarted coverage of Disney, assigning an Overweight rating and setting a $135 price target. The firm pointed to a mix of strong park performance and gains in streaming as key factors. (Investing)
Questions around content economics persist despite the fresh nameplate in the corner office. Disney’s guidance pointed to challenges from weaker international visitation at its U.S. parks and rising costs for sports rights. Meanwhile, the entertainment division wrestles with inflationary pressures and a sluggish advertising market.
Disney is pushing a stronger tech narrative. CEO Bob Iger and CFO Hugh Johnston outlined plans for new ad-tech innovations, featuring an AI-driven planning tool and a video generator. They also mentioned a curated lineup of Sora-generated content on Disney+, linked to a licensing deal with OpenAI. Plus, they flagged the Disney Adventure cruise ship’s inaugural voyage set for March 10 from Singapore. (The Walt Disney Company)
Yet, a single bounce won’t close the chapter. Should park attendance dip with changing travel habits, or if streaming growth depends too much on price hikes that drive up churn, investors might revisit the same concerns that dragged the stock down earlier this week.
March 18 marks the next major milestone, with shareholders gathering as D’Amaro prepares to step into the CEO position. That meeting will offer the first real glimpse of whether Disney can convince Wall Street it’s maintaining a steady course — and what shifts, if any, lie ahead.
