The largest entertainment company in the world, , presents results in a decisive week for its future. The board of directors plans to meet to decide the name of the . The next CEO, if one is ultimately chosen, will find himself with a stagnant group, only able to slightly improve its business, and posting quarterly losses. The new executive will also have to face some growing risks: the company warns that its income may be affected by “obstacles to international visits to our national parks,” as the company explained in the presentation of its quarterly results.
The Administration of the President of the United States, Donald Trump, . He has deported nearly 700,000 undocumented immigrants during his first year in the White House. And he has ordered the Department of Homeland Security to strengthen the departments of immigration control (ICE) and Border Patrol to carry out indiscriminate raids in search of immigrants. In addition, it is restricting the granting of visas.
Despite this, the Experiences segment, which includes the National Parks and Experiences business, continues to be the goose that lays the golden eggs of the entertainment giant, with a growth of 8% thanks to the increase in visits (1%) and the greater spending of visitors (4%) to its entertainment centers, says the group based in Burbank (California). This subsidiary achieved record revenues of $10 billion.
Thanks to that, the company recorded revenues of $25,981 million during its first fiscal quarter ended December 27. This figure represents an increase of 5% compared to the same quarter of the previous year and significantly improves the forecasts of analysts, who expect a more modest turnover.
Revenue from the Entertainment subsidiary’s business, which groups audiovisual productions and subscriptions to Disney+ and Hulu, also improved. Revenue increased 7% compared to the first quarter of fiscal 2025. However, because “higher programming, production and marketing costs in the quarter more than offset an increase in subscription and affiliation fees and higher theatrical revenues.” Analysts didn’t like that trend. In fact, in their assessments, analysts highlight that Entertainment’s operating income (deducting costs) fell by almost a third during the quarter.
Stock Market Hit
However, there are other segments that are having a harder time making profitable, such as Sports. “Higher programming and production costs and a decrease in subscription and affiliation rates” hampered the performance of this subsidiary, which also suffered from the temporary suspension of YouTube TV broadcasting for two weeks due to differences in rate setting.
Despite this, the group recorded a net profit of 2,402 million dollars, which represents a decrease of 6% compared to the same period of the previous year. Although the turnover exceeded analysts’ forecasts, the losses have increased distrust. The group loses more than 7% on the stock market this Monday,
Along with the Experience area, the Entertainment business also contributes muscle to the group: the subscription video streaming services Disney+, Hulu and Disney+ recorded operating income of more than 450 million, which is 72% more.
The company draws a tighter outlook for this year. Expects its Entertainment business to continue growing thanks to the launch of its eighth cruise Disney Adventure in Singapore and the opening of World of Frozen at Disneyland Paris. But he barely sees modest improvements in the other business units, such as Sports and Experiences.
Instability due to Iger’s succession
“We are pleased with the start of our fiscal year, and our achievements reflect the tremendous progress we have made,” said Bob Iger, CEO of The Walt Disney Company. “We achieved strong box office performance in calendar year 2025 with multi-million dollar hits like Zootropolis 2 y Avatar: Fire and Ashfranchises that generate value in many of our businesses. As we continue to manage our company with an eye to the future, I am extremely proud of everything we have achieved in the last three years,” explained the historic executive, who plans to take a step back in a few weeks.
The leading candidates to succeed him are Josh D’Amaro, head of Disney’s theme parks business, and Dana Walden, co-president of Disney entertainment, according to analysts. Some point to D’Amaro as the candidate with the most options. It is expanding the fleet of cruise ships to 13 and overseeing the construction of a new theme park in Abu Dhabi. Speculation about who will get the job and whether the other person will be offered a more prominent position has consumed Disney employees and much of Hollywood for the past several months, while supporters of both executives have been quietly competing behind the scenes.
The succession of Disney’s first executive has been causing some unrest in the group for the last three years. Iger already handed over the reins in 2020 to Bob Chapek, but his management was a fiasco and led to the return of Iger, 74, who has said that he plans to resign from his position before the end of the year, as announced this week The Wall Street Journal.
