Walt Disney shares jump as earnings beat expectations

Shares of Walt Disney surged more than 5% in premarket trading after the entertainment giant reported better-than-expected quarterly results, supported by growth in its streaming business and theme park operations.

For the January–March quarter, Disney posted adjusted earnings per share of $1.57 on revenue of $25.2 billion.

Analysts had expected earnings of $1.49 per share and revenue of $24.78 billion, according to LSEG data.

The upbeat results come at a pivotal time for the company, as newly appointed Chief Executive Josh D’Amaro takes charge following the departure of Bob Iger in mid-March.

New leadership outlines growth strategy

In his first major communication to shareholders, D’Amaro struck an optimistic tone, forecasting continued earnings expansion despite broader economic uncertainties.

In a letter to investors, he said Disney expects adjusted earnings per share to grow about 12% in fiscal 2026, reinforcing earlier guidance of double-digit growth.

The company also reiterated expectations for double-digit EPS growth in fiscal 2027.

“We see a significant opportunity to engage and entertain our fans more deeply in both digital and physical environments,” D’Amaro said, outlining plans to invest in both content and theme park experiences while leveraging technology to enhance storytelling and monetisation.

He acknowledged macroeconomic pressures, including rising fuel costs and consumer uncertainty, but said demand at Disney’s US theme parks remained “healthy.”

Parks and experiences drive steady gains

Disney’s experiences division, which includes theme parks, cruise lines and consumer products, reported a 5% increase in operating income during the quarter.

The growth was driven by higher guest spending at US parks in Florida and California, as well as increased cruise ship volumes compared with a year earlier.

The segment has become an increasingly important pillar of Disney’s business, offering more stable revenue streams amid ongoing disruption in traditional media.

Streaming and entertainment support earnings

In the entertainment segment, operating income rose 6% to $1.34 billion, supported by gains in streaming subscriptions and advertising revenue across platforms such as Disney+.

The division also benefited from the continued box office success of films including “Zootopia 2” and “Avatar: Fire and Ash,” which contributed to results during the quarter.

Disney has recently reduced the level of detail it provides on its entertainment segment, including no longer reporting quarterly streaming subscriber numbers or detailed breakdowns for its linear television networks.

The shift comes as the company continues to navigate declining traditional TV viewership, a trend that has weighed on media companies across the industry.

Sports segment shows mixed trends

Disney’s sports business, led by ESPN, reported a 2% increase in revenue to $4.61 billion.

The growth was driven by higher subscription and affiliate fees, as well as contributions from major sports rights agreements, including the NFL.

However, rising costs remain a challenge, with higher contract rates and expenses tied to new sports rights deals weighing on profitability.

A key bright spot was ESPN’s direct-to-consumer streaming app, launched in August, which generated enough digital revenue to offset declines in the traditional television ecosystem.

Balancing transformation and uncertainty

Disney’s latest results highlight the company’s ongoing transition toward a more diversified model, with streaming and experiences offsetting structural declines in legacy television.

As D’Amaro takes the helm, the company faces a complex landscape shaped by evolving consumer preferences, technological disruption and broader economic pressures.

For now, investors appear encouraged by early signs of stability and growth, even as Disney continues to navigate one of the most significant transformations in its history.

Disney shares rise after earnings beat as streaming and theme parks drive growth under new CEO Josh D’Amaro.

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