Disney Stock Slides Despite Strong Earnings as Investors Look Ahead to CEO Succession

Disney shares fell sharply Monday morning, despite a better-than-expected quarterly earnings report, as investors assessed reports about the company's CEO succession plans.

The Walt Disney Company (DIS) early today reported fiscal first-quarter results that topped Wall Street estimates on the top and bottom lines. The results came after reports over the weekend said that CEO Bob Iger will be stepping down earlier than expected, with a decision on his replacement coming soon.

The Wall Street Journal reported that Iger has told people close to him that he plans to step down before his contract is up at the end of 2026, with Bloomberg reporting Sunday that Disney Experiences Chairman Josh D’Amaro is a likely choice to succeed Iger. Each report said a board meeting is expected sometime this week with a vote to decide on Iger's successor likely. Disney previously said in November 2024 that it would announce Iger's successor in early 2026.

Iger didn't address who will be his successor in Monday's earnings call, but said that Disney "is in much better shape today than it was three years ago, because we have done a lot of fixing, but we've also put in place a number of opportunities." He said he thinks his successor will be given "a good hand" in terms of Disney's current strength and avenues for future growth.

The company's revenue in the fiscal first quarter came in at $25.98 billion, with adjusted earnings per share of $1.63, each figure beating the analyst consensus compiled by Visible Alpha. Streaming revenue grew by 11% year-over-year, while Disney's Experiences segment, which includes its theme parks and cruises, posted a record $10 billion in revenue in the fiscal first quarter.

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Despite the earnings beat, Disney shares were down nearly 5% in recent trading. Entering Monday, the stock was roughly flat over the last 12 months, about 40% above the lows experienced last April amid tariff uncertainty, and some 10% off last year's high point reached last summer.