The Walt Disney Company’s Chief Financial Officer, Hugh Johnston, sat down at the Wells Fargo Technology, Media & Telecom Summit to outline Disney’s financial outlook, content plans, streaming strategy, and the future of ESPN. The discussion offered a clearer view of how Disney expects to grow earnings, strengthen direct-to-consumer platforms, expand theme parks, and invest in new experiences worldwide.
A Strong Year Behind Disney
Johnston highlighted a solid fiscal 2025 performance. Disney ended the year with 19% EPS growth and delivered its first-ever $10 billion operating income year for Parks & Experiences. He emphasized that Disney’s long-term goal is to “be an earnings compounder” by stacking strong years together.
Films Lead the Entertainment Slate
Disney’s 2026 film lineup is set to drive box office momentum. Upcoming releases include:
- Zootopia 2
- Avatar: Fire and Ash
- The Devil Wears Prada 2
- Moana (live-action)
The studio remains focused on fewer, higher-quality projects, aiming for stronger returns and steadier franchise performance.
Disney+ and DTC Growth
Johnston reaffirmed the company’s commitment to growing streaming revenue and engagement. Disney’s DTC business is aiming for double-digit top-line growth and double-digit margins in 2026.
Disney+ continues evolving into a unified entertainment hub. The long-term vision is clear: a single app where sports, news, entertainment, and future commerce offerings all live together.
Key DTC points:
- Disney+ and Hulu convergence continues.
- Engagement and retention are improving.
- Content spend growth will remain disciplined.
- International expansion relies on local content alongside global IP.
ESPN’s New Era
ESPN’s direct-to-consumer service launched with strong early adoption. Johnston confirmed that 80% of new ESPN subscribers choose a bundle, boosting retention for Disney’s entire streaming ecosystem.
Early usage trends show high engagement, especially with interactive features like personalized SportsCenter feeds and Multiview.
Parks & Experiences Stay Strong
Despite a slight dip in domestic attendance last year, Disney Parks ended the year essentially flat when adjusted for weather impacts. Per-cap spending grew 5%, and 2026 booking trends are already pacing up.
Major experience expansions ahead:
- Frozen land in Disneyland Paris
- Cars attractions at Walt Disney World
- Encanto and Indiana Jones for Animal Kingdom
- Spider-Man attraction in Shanghai
- Lion King–themed area in Paris
Johnston noted that experiences will remain a core driver of Disney’s long-term earnings.
Global Growth: Abu Dhabi and Cruise Line Expansion
Disney’s upcoming Abu Dhabi park is positioned as a massive long-term opportunity. Johnston expects it to become Disney’s most technologically advanced park and a new gateway to billions of potential guests.
Cruise expansion also plays a major role. Two new ships arrive this year, with Disney Cruise Line expected to reach 13 ships by 2031. Demand remains strong, with capacity holding steady even as new ships come online.
Content Strategy: Quality Over Volume
Content spending will grow modestly in 2026, with a heavier focus on international markets and stronger creative quality. Johnston emphasized that “ideas attract money,” reaffirming that content investment follows the best creative opportunities—across Pixar, Marvel, Lucasfilm, and Disney Animation.
ESPN + NFL Partnership
Disney’s new deal with the NFL deepens the relationship and brings major assets under ESPN’s umbrella:
- Control of NFL Network
- Unified fantasy sports platform
- Expanded RedZone distribution
- More NFL games on ESPN than ever before
The deal is expected to be accretive once finalized.
Cash Flow, Buybacks, and Capital Strategy
Johnston positioned Disney as a future “cash machine,” driven by strong margins, disciplined spending, and sustained DTC growth. Capital allocation priorities remain:
- Invest in the business
- Grow the dividend
- Pursue small strategic acquisitions
- Expand share repurchases ($7B planned this year)
Our Thoughts.
Disney’s appearance at the Wells Fargo TMT Summit paints a clear picture. The company is doubling down on:
- Unified streaming through Disney+
- Major ESPN expansion
- Global park and cruise investment
- Strong creative output
- A disciplined financial path
For fans, this means more big films, more experiences, a stronger Disney+ platform, and new reasons to follow the company’s next chapter. And with Zootopia 2, Avatar, and major park expansions coming, 2026 is looking like another milestone year for Disney.
— Listen to the full replay of Disney’s presentation
