In recent years, Disney stock (NYSE:DIS) has failed to deliver for investors, shedding more than 40% of its market value. The reappointment of Bob Iger as CEO in late 2022 instilled optimism, and his strategic actions enhanced profitability in multiple business units. As Josh D’Amaro prepares to assume the CEO role, the investment community is monitoring whether Disney can at last convert its operational achievements into lasting share price gains.
Streaming Turns Profitable Under Iger
A key achievement of Iger’s tenure was the overhaul of Disney’s streaming approach. By prioritizing profitability over sheer subscriber numbers, the streaming division reported an operating profit of $450 million in fiscal Q1 2026, achieving an 8.4% margin. Disney forecasts a 10% operating margin for streaming for the full year, a significant recovery from the nearly $1.5 billion operating loss recorded in fiscal Q4 2022 under former CEO Bob Chapek.
Theme Parks and Experiences Reach Milestones
The Experiences segment, encompassing theme parks and resorts, surpassed $10 billion in revenue during the latest quarter, setting a new record. This unit has long been a primary source of profit, and Iger’s leadership emphasized customer satisfaction and long-term investments to upgrade park offerings. These enhancements are designed to reinforce Disney’s “flywheel” effect, where enjoyable guest experiences increase visitation, merchandise revenue, and overall brand allegiance.
Box Office and Content Performance
The company’s film division also demonstrated stronger performance. Disney was the box office leader in both 2024 and 2025, a success that elevates revenue from cinema releases and also increases the worth of its intellectual property (IP) for merchandise, parks, and streaming. Disney’s vast content collection continues to be a crucial edge in the competitive streaming landscape, especially as competitors such as Netflix (NASDAQ:NFLX) and Paramount Skydance (NASDAQ:PSKY) highlight the market premium for premium IP, as seen in the bidding for Warner Bros. Discovery (NASDAQ:WBD) assets.
Financial Performance Under Iger
Disney’s overall financial health strengthened during Iger’s leadership. Revenue climbed to $26 billion in fiscal Q1 2026, compared to $23.5 billion in fiscal Q1 2023, his first quarter back. Adjusted earnings per share (EPS) increased significantly from $0.99 to $1.63 over the same timeframe, indicating the firm’s shift towards profitable expansion. Even with these improvements, the stock price has shown little movement, trailing the wider market and resulting in a forward P/E ratio of 16.4 times, which is lower than the S&P 500 average.
Why Disney Stock Has Stalled
Although operational progress is evident, Disney’s performance on the stock market has been sluggish. The growth in earnings under Iger has not been fully acknowledged by investor sentiment. This gap between the company’s fundamentals and its share price has placed the stock at a relative discount, creating a nuanced situation for shareholders with a long-term view. The market appears to be pricing in concerns regarding the durability of growth, streaming competition, and possible risks associated with the new CEO’s execution.
The Outlook With D’Amaro
Josh D’Amaro takes the reins of a more robust company. Its streaming business is in the black, theme parks are performing well, and content creation is still yielding worldwide successes. D’Amaro’s handling of key strategic choices—especially in adopting new technologies, pursuing international expansion, and utilizing Disney’s extensive IP library—will be pivotal in determining if the stock price starts to align with the company’s fundamental strength. Investors will be attentive to any shifts in strategy or operational priorities under his command.
Should Investors Buy or Sell Disney Stock?
Disney’s enormous IP holdings and varied income sources present an attractive long-term narrative. Success at the box office fuels theme park traffic and product sales, and its content archive strengthens its streaming service’s potential. Nonetheless, the stock’s performance has been weak, and the recent market decline has opened up opportunities in other technology and entertainment stocks that may offer more favorable risk-reward profiles. Investors with a long-term horizon might stay positive, but short-term results will depend heavily on D’Amaro’s ability to execute the strategy.
Conclusion
With Josh D’Amaro as the new leader, Disney (NYSE:DIS) is embarking on a fresh chapter. Enhanced earnings, a profitable streaming service, and successful theme parks provide a foundation for possible share price growth, though patience from investors might be necessary. The extent to which D’Amaro can effectively utilize Disney’s IP and generate sustainable growth will probably be the deciding factor in whether the stock finally ends its period of prolonged underperformance.