NEW YORK, Feb 3, 2026, 19:58 ET — After-hours
- Shares slipped in late trading following Disney’s announcement that parks chief Josh D’Amaro will succeed as CEO
- Investors continue to digest the guidance, as the company signaled weaker international visits to U.S. parks
- Next up: early indicators of parks demand and streaming profits ahead of the March handover
Disney shares dipped roughly 0.2% to $104.22 in after-hours trading Tuesday following the announcement that Josh D’Amaro will step in as CEO on March 18, replacing Bob Iger. Board chair James Gorman called D’Amaro “the right person to take the helm.” (The Walt Disney Company)
The leadership call highlights parks demand taking on a bigger role. Just a day before, Disney’s quarterly update flagged “headwinds” from a drop in international visitors to its U.S. theme parks—a surprise snag for a segment investors usually see as more reliable than the broader media sector. Ben Barringer of Quilter Cheviot put it plainly: “The share price drop is very much to do with the parks business.” (Investing)
Disney posted fiscal first-quarter revenue of $26.0 billion, marking a 5% increase, with adjusted earnings per share coming in at $1.63, excluding certain items. The company reaffirmed its outlook for double-digit adjusted EPS growth in fiscal 2026 and projects $19 billion in cash from operations. It also remains on track to buy back $7 billion in stock. (Thewaltdisneycompany)
That context sheds light on why Tuesday’s succession news shook the stock. D’Amaro hails from the Experiences segment — parks, resorts, and cruises — while the traditional TV bundle keeps shrinking, and film and sports spending cause earnings to swing each quarter.
Disney’s Experiences segment hit a record $10.0 billion in revenue and $3.3 billion in operating income for the December quarter, the company reported. Meanwhile, its streaming division brought in $450 million in operating income. Still, management warned that profit growth for Experiences in the current quarter is expected to be modest, pointing to challenges from weaker international attendance at domestic parks and expenses tied to pre-launch and pre-opening activities.
The earnings report also highlighted a drag on Sports from a temporary YouTube TV carriage suspension, which hurt results at ESPN. Disney is pushing to boost streaming margins at Disney+ and Hulu while cutting costs in its traditional TV business.
The CEO transition raises fresh questions. Analysts note D’Amaro isn’t as familiar to Hollywood insiders, and he’ll step into major labor contract battles set for May and June, centered on the role of generative AI. “Disney can ill afford another messy handover,” warned Paolo Pescatore of PP Foresight. (Reuters)
Competition is heating up as rivals chase scale in streaming and studios. Warner Bros Discovery assets have drawn interest from Netflix and Paramount, moves that could shift the balance on pricing for premium shows and sports rights. (Reuters)
Disney’s announcement landed amid a down day for U.S. stocks, as the S&P 500 and Nasdaq slipped while investors pulled back from some tech sectors and reevaluated growth risks. (Reuters)
Investors are now focusing on new data around park bookings and international travel trends, while watching if streaming profits can keep pace amid rising content and sports expenses. The next key date is March 18, when D’Amaro is scheduled to assume the role at Disney’s annual meeting.
