D’Amaro’s first call signals a shift from subscription maximization to lifetime-value integration
Disney is rebuilding its streaming business from a standalone subscription product into a single integrated layer where IP, theme parks, games, advertising, licensing and sports betting all converge on one screen. The company calls it a ‘digital centerpiece.’
On May 6, new CEO Josh D’Amaro used his first earnings call to deliver Q2 fiscal 2026 revenue of $25.2 billion (+7% year over year), operating income of $4.6 billion (+4%) and adjusted EPS of $1.57 — all ahead of consensus. The stock jumped more than 8% on the print. The strategic spine he laid out has three vertebrae: continued investment in IP that breaks through, integration across consumer touchpoints, and the use of technology including AI to drive monetization and efficiency. It is the second vertebra — the Disney+ super-app construct — that defines the D’Amaro era.
Jung Han
The structural pressure behind this pivot is the same one that has reshaped U.S. media for two years. Cord-cutting has chewed through ESPN and ABC retransmission, advertising and bundling economics, and Disney has answered by launching its own ESPN direct-to-consumer service and expanding wholesale distribution agreements.