Succession Questions Hang Over Disney

Core Insights - The market sentiment towards Disney is currently pessimistic, with a notable 10% drop in stock price, marking its largest decline since November 2022 [2][3] - Despite achieving a 19% EPS growth in fiscal 2025, expectations for fiscal 2026 were not met, as the market anticipated more concrete and specific guidance beyond just double-digit EPS growth [1][2] - Ongoing succession issues within Disney have created uncertainty, with speculation about potential candidates for leadership roles, particularly between Dana Walden and Josh D'Amaro [3][4][5] Financial Performance - Disney delivered a 19% EPS growth in fiscal 2025, indicating solid business momentum [1] - The first quarter of fiscal 2026 is projected to be weaker due to various cost challenges, including studio launch costs and cruise expenses [1] Succession Planning - The succession planning at Disney has been problematic, with questions lingering for nearly a decade [3] - The potential candidates for leadership include Dana Walden, who oversees the creative division, and Josh D'Amaro, who manages the parks, which contribute significantly to the company's profits [4][5] - There is speculation about a possible co-CEO structure similar to that of Netflix and Spotify, but clarity is expected by the end of March [5]