Disney's streaming story persists as Experiences segment drives growth

Disney’s new CEO, Josh D’Amaro, comes from the Experiences segment—Disney’s most profitable business unit. With the company spending billions to expand its theme parks and cruise line, and with streaming already profitable, the leadership shift could help improve the stock’s outlook.

Cause: A leadership change rooted in Disney’s strongest unit

Josh D’Amaro succeeded former CEO Bob Iger in March 2026. D’Amaro previously served as Disney’s Experiences chairman, positioning him to drive a strategic focus built around the company’s parks, cruise line, and consumer products.

Development: Streaming is profitable, but Experiences drives the money

Disney’s streaming efforts have largely worked. The company ended fiscal year 2025 with approximately 196 million subscribers across Disney+ and Hulu. Streaming also generated $1.3 billion in operating income last year and $450 million in the first quarter of fiscal year 2026.

However, streaming is not Disney’s main profit engine. In the first quarter of fiscal year 2026, the Experiences segment produced $3.3 billion in operating income. That segment accounted for 38.5% of total revenue but 71.9% of operating income—making it the company’s dominant earnings contributor.

Data and investment plans: Billions earmarked for parks and cruises

Disney is leaning into its Experiences strengths. In 2023, the company announced plans to invest $60 billion over 10 years to expand its parks. Late last year, Disney also announced plans to double its cruise line fleet by 2031.

Impact: Cleaner financials and a valuation reset

Including dividends, Disney stock is up just 6% over the past decade, reflecting years of pressure tied to debt reduction after Disney’s $71.3 billion Fox acquisition and the long buildout of its streaming base.

More recently, Disney’s financial position has improved. The company reduced leverage to 2.3x EBITDA and reinstated its dividend. The stock now trades at less than 15 times its 2026 earnings estimates.

Analysis: What investors may watch next

Analysts estimate Disney’s earnings will grow by 11% to 12% annually over the next three to five years. With D’Amaro coming from the Experiences business that already generates the majority of operating income, the article argues the next phase of Disney’s strategy could be more favorable for investors—especially as Experiences expansion continues alongside a profitable streaming platform.