What Happened?

Shares of global entertainment and media company Disney (NYSE: DIS) fell 6.6% in the afternoon session after the company reported fiscal first-quarter 2026 earnings results, which were overshadowed by uncertainty related to a leadership change as the board finalized CEO Bob Iger's successor. 

The decline was further fueled by cautious guidance regarding "international headwinds." amid a dip in overall U.S. tourism, which is expected to dampen domestic park attendance in the coming months. The quarter was good as Disney beat analysts' sales, operating profits, and earnings expectations. On the other hand, its Sports revenue missed. Overall, this was a decent quarter, clouded by uncertainty created by a transition in leadership.

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What Is The Market Telling Us

Disney’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 9 months ago when the stock gained 10.7% on the news that the company reported strong first quarter 2025 results which beat analysts' revenue and EPS expectations, included positive Disney+ net adds that exceeded estimates, and featured full-year adjusted EPS guidance that handily topped expectations. Sales rose 7%, with solid performance from its theme parks and movie content more than offsetting weaker results in sports. Zooming out, we think this was a very good print.

Disney is down 6.5% since the beginning of the year, and at $104.56 per share, it is trading 15.7% below its 52-week high of $124.01 from June 2025. Investors who bought $1,000 worth of Disney’s shares 5 years ago would now be looking at an investment worth $590.86.

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