Disney (DIS) Faces Leadership Shift Amid Strong Q1 Profits and Pricing Divergence

Disney (DIS) prepares to hand leadership to Josh D'Amaro next month, with Bob Iger remaining as strategic advisor until year-end. First-quarter streaming operations posted an $450 million operating profit with an 8.4% margin, and the company expects full-year margins to reach 10%. Revenues for the Experiences segment surpassed $10 billion in the latest quarter, and Disney was the top-grossing studio in 2024 and 2025. Consolidated revenue for fiscal Q1 2026 reached $26 billion, up from $23.5 billion in Q1 2023, and adjusted EPS rose to $1.63 from $0.99. However, DIS shares have underperformed the broader market despite these gains, trading at a forward P/E of 16.4x versus an S&P 500 average of about 20x. While the stock remains attractive given Disney’s IP moat and potential strategic moves under D'Amaro, investors should monitor the transition and note that Oberoi has trimmed DIS exposure in favor of tech peers like Netflix (NFLX).