Analysts expect Disney’s fiscal first-quarter revenue to increase by nearly 4%, driven by the strong box office run of its latest releases, “Zootopia 2” and “Avatar: Fire and Ash”.
- Disney’s adjusted profit is expected to decline by over 10%, according to analyst consensus estimates.
- CEO succession at a media conglomerate has long been a focus for investors and analysts, with a Sunday Bloomberg report claiming the company would name Josh D’Amaro to the role this month.
- Stocktwits sentiment for DIS shifts to ‘Bullish’ from ‘Neutral.’
Walt Disney Co. is expected to report revenue growth for the December quarter, buoyed by strong theatrical releases such as “Zootopia 2” and “Avatar: Fire and Ash.” However, any update on its CEO transition will be closely watched and likely shape investor sentiment.
The media conglomerate said in a regulatory filing last month that it would announce CEO Bob Iger’s successor in “early 2026,” followed by a Wall Street Journal report saying that Iger plans to step back from daily management before the end of his term at the end of 2026.
Bloomberg reported on Sunday, citing sources, that Disney is set to pick theme-park division chairman Josh D’Amaro as the next CEO and announce the appointment as early as this month. The reports sparked discussion on Stocktwits late Sunday, with DIS retail sentiment shifting to ‘bullish’ from ‘neutral’ the previous day, amid ‘high’ message volume.
Results Expectations
Analysts expect Disney’s December revenue to rise by 3.7% to $25.6 billion, the highest pace in the last three quarters, according to Koyfin. Adjusted profit is expected to decline 10.5% to $1.58 per share.
Two of the biggest Disney releases recently, “Zootopia 2” and “Avatar: Fire and Ash,” crossed $1 billion in box office collections.
Disney’s revenue had declined 0.5% preceding three months (Q4 2025) and missed analysts’ targets. In that earnings report, the company also announced doubling its share repurchases to $7 billion and increasing the dividend by 50% to $1.50 per share for the current fiscal year. Shares dropped sharply after the results, but have since covered those losses.
Last month, Wells Fargo added Disney to its Tactical Ideas list, citing strong parks and box-office revenue and the upcoming CEO transition. The December quarter is typically strong for both segments.
CEO Plan In Focus
D’Amaro, 54, has led Disney’s park division to deliver most of Disney’s profits since 2020.
He would replace Iger, who returned as CEO in 2022 after serving as CEO from 2005 to 2020. Despite sweeping changes in his second term, he has faced challenges in accelerating Disney’s transition from linear television to streaming as part of a broad turnaround strategy.
Disney stock rose a mere 2.2% in 2025, and is down nealy 1% so far this year.
“We wouldn’t expect the company to address leadership succession during the earnings call, but do anticipate resolution of this matter over the very near term,” JP Morgan analyst David Karnovsky said in an investor note, according to Seeking Alpha.
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