Disney-Heavy ETFs to Watch Amid Q1 Earnings & CEO Change

Core Insights - The Walt Disney Company reported first-quarter fiscal 2026 adjusted earnings of $1.63 per share, beating estimates by 3.8% but down 7% year over year [1] - Revenues increased by 5% year over year to $25.98 billion, slightly missing consensus by 0.03% [2] - Net income for the quarter was $2.48 billion, or $1.34 per share, a decline from $2.64 billion, or $1.40 per share in the same period last year, representing a 4% decrease in reported EPS [2] Leadership Transition - Josh D'Amaro has been appointed as CEO, succeeding Bob Iger, which is viewed positively by investors [3] - D'Amaro previously served as chairman of Disney Experiences, which saw a 6% revenue increase year over year to $10.1 billion [3] Segment Performance - Entertainment revenues, making up about 44.7% of total revenues, rose 7% year over year to $11.61 billion, but operating income fell 35% to $1.1 billion [4] - Domestic revenues for Experiences were $6.91 billion, up 7% year over year, while international revenues also increased by 7% to $1.75 billion [5] - Streaming revenues grew 11% to $5.35 billion, with subscription fees climbing 13% to $4.4 billion, and reported an operating margin of 8.4% [6] - Content Sales/Licensing and Other revenues increased 22% year over year to $1.94 billion, driven by higher theatrical distribution [7] Fiscal Outlook - For fiscal 2026, Disney anticipates double-digit adjusted earnings per share growth compared to fiscal 2025, with planned capital expenditures of $9 billion and $24 billion in content investment [8] - The company expects Entertainment operating income for Q2 fiscal 2026 to be similar to the previous year, with streaming profit projected at approximately $500 million, a $200 million increase year over year [8] Stock Analysis - Disney's average brokerage recommendation is 1.56 on a scale of 1 to 5, indicating a generally bullish outlook among analysts [11] - The average price target for DIS is $134.89, suggesting a potential increase of 29.43% from its current level of $104.22 [13]