Disney earnings beat estimates as new CEO outlines growth strategy

The entertainment giant reported adjusted earnings-per-share of $1.57 and revenue of $25.2 billion for January through March. Analysts on average had expected adjusted EPS of $1.49 and revenue of $24.78 billion, according to LSEG. The company’s shares jumped more than 4% ​in premarket trading.

D’Amaro succeeded Bob Iger as Disney CEO in mid-March and is steering the ​company through a consumer shift to streaming, the advent of artificial intelligence ⁠tools that could rewrite the economics of media and a challenging economy hit by higher oil ​prices. In a 10-page letter to shareholders, D’Amaro said he expected adjusted EPS growth for fiscal 2026, ​which ends in early October, to reach about 12%. The company had earlier projected growth for that period in the “double digits.” He reiterated that Disney expects double-digit adjusted EPS growth for fiscal 2027.

D’Amaro also said he ​planned to invest in entertainment content and theme park experiences and use technology to help increase ​revenue from storytelling, among other initiatives.“We see a significant opportunity to engage and entertain our fans more deeply ‌in ⁠both digital and physical environments,” he said. He added that the company was “mindful of the macroeconomic uncertainty consumers are facing” but that current demand at Disney’s U.S. theme parks in Florida and California was “healthy.” The experiences division, which includes parks, cruise ships and consumer products, reported a 5% increase in ​operating income for the ​just-ended quarter.

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Guests spent ⁠more at U.S. theme parks, and cruise ships saw higher volume, compared with the same period a year earlier, Disney said. The boost came partly ​from higher subscription ⁠and advertising revenue from streaming services including Disney+.

Movie box-office hits “Zootopia 2” and “Avatar: Fire and Ash,” released last year, continued to contribute during the quarter. The sports division, home of ESPN, posted a 5% ⁠decrease ​in operating income to $652 million. Disney said the division incurred ​higher sports rights and production costs compared with a year earlier.

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