Disney: After Iger

From “Disney: Rewiring The Earnings Engine” (November 2025):

“While I believe the stock is attractively priced at current levels, and is likely to deliver strong returns over the next five years, I think that conclusion is reasonably accounted for at its current portfolio weighting - admittedly, an answer partly informed by the pain incurred owning Disney over the past 5+ years. There are two scenarios where that conclusion may change: if the stock price faces continued near term pressure, or if we receive encouraging details on early adoption of ESPN flagship… While this remains a messy story, I see reason to believe today’s setup is favorable for patient investors.”

The messiness cited above applies to Disney in a few ways: they operate in an industry that is undergoing significant change; they have a new CEO who may aspire to put his own stamp on Disney’s strategy, particularly in gaming / interactive; and the company recently restructured its segment financials - again - with less granular reporting, most notably within DTC and at ESPN.

And yet, I think that the Q2 FY26 call – CEO Josh D’Amaro’s first – was unambiguous and focused. It was a step in the right direction for Disney that reflects some fresh perspective as the company begins the post-Iger era.

Disney’s strategy is focused on four key areas: