Disney Reports $2.28B Q1 Cash Burn, Names D’Amaro CEO with $60B Parks Plan
Disney’s Q1 FY2026 free cash flow plunged to -$2.278B (down 408% YoY), while Experiences revenue hit $10.01B and SVOD operating income rose 72% to $450M. Josh D’Amaro will become CEO on March 18 as Thomas Mazloum prepares to oversee the $60B parks expansion.
1. Q1 Cash Flow and Revenue Trends
Disney’s Q1 FY2026 free cash flow plunged to -$2.278B, down 408% year-over-year, driven by $3.013B in capital expenditures (up 22%) and $1.7B of deferred wildfire tax payments. Operating cash flow fell 77% to $735M, while Experiences revenue reached $10.01B and SVOD operating income rose 72% to $450M.
2. Leadership Transition
Josh D’Amaro will succeed Bob Iger as CEO on March 18, introducing execution risk during a critical structural shift in media. Thomas Mazloum, who has led Disneyland Resort since March last year, is expected to be named chairman of the parks, cruises and consumer products division.
3. Parks Expansion Strategy
The parks, cruises and consumer products segment generated nearly $10B in operating income last year, accounting for over half of Disney’s total. Management plans to invest $60B to expand its resorts, nearly double its cruise ship fleet and launch new attractions, including an Avatar-themed land.