Disney’s parks chief Josh D’Amaro has officially been tapped to succeed Bob Iger as CEO, and the latest earnings report may explain why investors are watching him closely.
“Josh D’Amaro possesses that rare combination of inspiring leadership and innovation, a keen eye for strategic growth opportunities, and a deep passion for the Disney brand and its people – all of which make him the right person to take the helm as Disney’s next CEO. Throughout this search process, Josh has demonstrated a strong vision for the company’s future and a deep understanding of the creative spirit that makes Disney unique in an ever-changing marketplace. He has an outstanding record of business achievement, collaborating with some of the biggest names in entertainment to bring their stories to life in our parks, showcasing the power of combining Disney storytelling with cutting-edge technology. The Board believes he is exceptionally well-prepared to guide this global company forward to serve our consumers around the world and create long-term value for shareholders.”
D’Amaro runs Disney’s experiences division, which includes theme parks, cruises, and merchandise. The unit has become the company’s main source of profits even as cable television revenue falls and streaming remains unsteady. Disney reported its fiscal Q1 2026 earnings (quarter ended December 27, 2025) on February 2, 2026, beating Wall Street estimates. Despite record earnings from the division, Disney’s overall stock dropped about 5 percent in early trading after reporting its latest results.
Investors reacted to what Disney called “international visitation headwinds” at U.S. parks, along with a decline in earnings per share and soft second-quarter guidance. The sharp market response showed how dependent Disney has been on D’Amaro’s arm of the business. Earlier this week Bloomberg reported that Disney’s board was “aligning on promoting” D’Amaro to replace Iger, who has announced plans to retire later this year, with D’Amaro taking over on March 18. Dana Walden, head of Disney’s entertainment unit, has named President and Chief Creative Officer of The Walt Disney Company, also effective Mar. 18. Her group delivered record streaming profits last quarter as the company’s cable channels continued to lose ground to cord-cutting. But her side of the business greatly trailed D’Amaro’s in profitability.
Disney’s experiences segment accounted for more than 70 percent of operating income, even though it made up less than 39 percent of revenue. Citi media analyst Jason Bazinet told CNBC that nearly all of Disney’s weaker earnings last quarter came from the entertainment side, not the parks division. “Virtually everyone I’ve spoken to would prefer that Mr. D’Amaro is named the new CEO,” he said, adding, “Nothing against Ms. Walden, but people just like Mr. D’Amaro a bit more.”
Iger expressed his approval of D’Amaro being named as the chosen candidate in a glowing endorsement that further bolstered the announcement:
D’Amaro’s record helps explain the sentiment. His division has steadily increased profits by boosting per-visitor spending through premium options such as Lightning Lane passes. Disney said U.S. park attendance rose just 1 percent last quarter, while per-person spending grew 4 percent. That growth, despite fewer international visitors, signals strong pricing power. The company has raised park ticket prices four years in a row without losing its most dedicated fans.
On Monday’s Disney earnings call, one analyst described the parks as having flipped from a lagging operation to the company’s main profit engine. Iger agreed, calling himself “very, very bullish” on the business, which he said has “never been more broad or more diverse.” During the call, we learned that overall operating income had dropped 9% to $4.6 billion amid rising costs. Stock fell 5-7.4% despite the beat, due to “international visitation headwinds” at U.S. parks, flat Q2 entertainment guidance, and CEO succession talk around Josh D’Amaro vs. Dana Walden.
Iger also hinted at an internal rivalry, noting that Disney now has “healthy competition” between its experiences and entertainment divisions over which will drive more profit. That same competition appears to mirror the one between Walden and D’Amaro for the company’s top seat. Analysts say the outcome could define Disney’s direction for years to come, and the trend is far from over.
This news of D’Amaro becoming the new CEO comes just after it was announced that Kathleen Kennedy would finally stepping down as head of Lucasfilm, perhaps signaling a turning point for Disney.
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