Disney's business is finally getting back on track

(Disclosure: I am currently long Disney)

Disney reported quarterly earnings today that exceeded analytical resolution, driven by its streaming and theme parking units

Revenue came in at $25.17B vs $24.85B expected (up 7% yoy), adjusted EPS $1.57 vs $1.50

Streaming operating income grew 88% (this was my key driver for my thesis on Disney)

Sports profits dropped 5% from much higher rights fees and the NFL Network deal pulling forward

They are also buying back shares. $5.5B already repurchased over the six months ended March 28. Disney just confirmed at least $8B in buybacks for FY26 and 12% adjusted EPS growth guidance. That's a meaningful number on a $185B market cap.

What I'm thinking for Disney

After a year of being patient, I feel like my thesis is finally coming to fruition. Bob Iger is out as CEO, and this is Josh D'Amaro's first quarter as CEO - and I'm liking what I'm seeing from him so far.

In the earnings report, he gave us an initial look at what his strategic vision is long term for Disney.

The letter identified three main strategic pillars: investing in IP; improving customer reach and engagement; and leaning into technology. “Disney’s unique competitive strength is our ability to create characters, stories, and franchises that form enduring relationships with audiences around the world,” D’Amaro and CFO Hugh Johnston wrote in the letter. “We engage with these audiences across streaming, theatrical, sports, consumer products, experiences, and games. What begins as a single creative investment can evolve into a multi-decade relationship – one that spans platforms, geographies, and generations. We believe these strengths support durable earnings growth and cash flow generation.”