US Stock Market Move | Q1 financial report exceeds expectations but suspense over CEO successor emerges, Walt Disney Company (DIS.US) opens down nearly 7%

On Monday, Walt Disney Company (DIS.US) opened down nearly 7%, now trading at $104.61. In terms of news, in the first quarter of the 2026 fiscal year ending December 27, Walt Disney Company's overall revenue increased by 5% year-on-year to $26 billion, exceeding analysts' expectations of $25.7 billion; the company achieved a pre-tax profit of $3.7 billion, also higher than Wall Street's forecast of $3.5 billion. Adjusted earnings per share were $1.63, down 7% from the same period last year, but still better than analysts' expected $1.57. Looking ahead, Walt Disney Company expects the operating profit of the entertainment division in the second quarter to remain flat compared to the same period last year, but expects its streaming business to generate a profit of $500 million, an increase of $200 million from the same period last year. For the full year, Walt Disney Company reiterated its full-year forecast of achieving double-digit earnings per share growth by 2025, and expects operating activities to generate $19 billion in cash flow for the year, with a $7 billion stock buyback plan progressing as planned. In addition, at the time of this financial report release, who will succeed Bob Iger as CEO has become a focus of attention. This is the second time Walt Disney Company has been looking for a successor to Iger - after Bob Chapek took over in 2020, he was dismissed after only two years, and Iger took back the reins. At that time, Walt Disney Company's stock price was under pressure, and the company urgently needed to boost its film and television business and revive its theme park performance.