Key Stats for Disney Stock
- Price change for Disney stock: 7.4%
- $DIS Share Price as of Feb. 2: $104
- 52-Week High: 125
- $DIS Stock Price Target: $132
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What Happened?
Disney (DIS) stock dropped 7.4% on Monday despite reporting better-than-expected earnings for its fiscal first quarter.
The company posted adjusted earnings per share of $1.63, beating Wall Street’s estimate of $1.58, while revenue came in at $25.98 billion versus the $25.60 billion expected.
The standout performance came from Disney’s Experiences segment, which includes theme parks, resorts, and cruise lines.
- The division topped $10 billion in quarterly revenue for the first time ever, according to CFO Hugh Johnston.
- Domestic parks pulled in $6.91 billion, while international parks added $1.75 billion, both up 7% year-over-year.
But investors weren’t celebrating. Disney stock fell sharply as concerns overshadowed the record-breaking theme park numbers.
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What the Market Is Telling Us About Disney Stock
The selloff in Disney stock reflects investor worries about slowing momentum in the company’s profit engine.
While the Experiences division reported $3.31 billion in operating income (up 6% from last year), management warned that growth would be “modest” in the second quarter due to softer international visitation at domestic parks, costs for a new Disney Cruise ship, and preopening expenses for the “World of Frozen” expansion at Disneyland Paris.
The company also faces headwinds in its Entertainment division, which posted operating income of $1.1 billion, down 35% from the prior year.
This decline underscores the ongoing challenges facing Disney’s traditional TV networks, even as streaming and theatrical releases show improvement.
On the streaming front:
- Disney reported 11% revenue growth to $5.35 billion, driven by higher subscription fees and the inclusion of Fubo, the internet TV bundle provider Disney acquired in October.
- The company expects its streaming unit to generate approximately $500 million in operating income next quarter, up roughly $200 million year over year.
- Disney also integrated Hulu into Disney+ and launched ESPN’s direct-to-consumer streaming platform, though the company stopped disclosing subscriber numbers this quarter, following Netflix’s lead.
Disney’s theatrical business continues to dominate.
- The company generated over $6.5 billion at the global box office in calendar year 2025, making it the third-biggest year ever.
- “Zootopia 2” became the highest-grossing animated film of all time with $1.7 billion, while “Avatar: Fire and Ash” crossed the $1 billion mark.
- CEO Bob Iger noted that 37 of the 60 films ever to hit $1 billion have come from Disney studios.
The Sports segment, now broken out separately, grew revenue 1% to $4.91 billion, but operating income fell 23% to $191 million.
Higher programming costs from new sports rights deals and the loss of traditional cable subscribers weighed on results. A temporary blackout of Disney networks on YouTube TV during the fall also hurt, costing about $110 million in operating income.
Perhaps the biggest question hanging over Disney stock isn’t about the numbers at all—it’s about leadership.
Disney’s board is meeting this week and is expected to vote on a successor to Bob Iger, who returned as CEO in 2022 after Bob Chapek’s brief and rocky tenure. The company previously said it would announce a replacement in the first quarter of this year.
Two of Iger’s top deputies are seen as frontrunners: Josh D’Amaro, chairman of Disney Experiences, and Dana Walden, co-chairman of Disney Entertainment.
D’Amaro runs the division that now accounts for roughly 60% of Disney’s operating income, making him a compelling candidate. Iger acknowledged the importance of the handoff, saying his successor will inherit “a good hand” with the company’s current strength and growth opportunities.
“I also believe that in a world that changes as much as it does, trying to preserve the status quo was a mistake, and I’m certain that my successor will not do that,” Iger said during Monday’s earnings call.
For fiscal 2026, Disney expects double-digit adjusted EPS growth, $19 billion in cash from operations, and plans to repurchase $7 billion in stock.
But with Disney stock down 7% on the day and trading nearly 20% below its 52-week high, investors clearly want more proof that the company can sustain momentum across all its divisions—not just its blockbuster theme parks.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
