Iger's Farewell: Disney's Theme Parks and Entertainment Units Vie for Top Profit Crown

As the Walt Disney Company prepares to turn the page on the Bob Iger era, the outgoing CEO used what may be one of his final earnings calls to spotlight a dynamic internal race. The company's legendary theme parks division and its entertainment unit are now in a tight contest to be the conglomerate's foremost profit engine.

The Disney board is poised to name Iger's successor imminently, with Bloomberg reporting a consensus forming around Disney Experiences chairman Josh D'Amaro. Iger, who has led Disney for nearly two decades across two separate tenures, struck a forward-looking tone while reflecting on the dramatic transformation of the parks business—once a laggard—into a financial powerhouse.

"We have a healthy competition now at our company in terms of which of those two businesses is going to essentially prevail as the No. 1 driver of profitability," Iger told analysts. He expressed confidence in the growth trajectory of both, citing sustained investment and strategic momentum.

The latest quarterly results underscore this rivalry. For the period ending December 2025, Disney's Parks, Experiences and Products segment set a new revenue record of $10 billion, a 6% year-over-year increase, with operating income rising to $3.3 billion. Meanwhile, the Entertainment division—encompassing streaming and film—saw revenue climb 11% to $11.6 billion, though operating profit fell 35% to $1.1 billion, pressured by elevated content and marketing costs.

Iger, who is expected to depart before his contract expires at the end of 2026, offered clear advice for the next CEO. "In a world that changes as much as it does... trying to preserve the status quo is a mistake," he stated, emphasizing that his successor will inherit a "good hand" but must continue to evolve.

The CEO traced the parks' renaissance to strategic acquisitions that bolstered its intellectual property library. "As we added IP to our stable... we gained access to intellectual property that had real value for parks and resorts," Iger explained, referencing the purchases of Pixar, Marvel, Lucasfilm, and 20th Century Fox. This IP infusion justified increased capital spending by promising—and delivering—higher returns.

Iger also pointed to recoveries in the film studio and streaming businesses, which have moved past the heavy losses of recent years. "It's clear that the future... of our entertainment business, is also bright and is going to grow," he said.

Despite the impending leadership transition, Iger resisted nostalgia. "I don't want to... get too nostalgic," he remarked, quickly correcting himself to call the handover "probable." He leaves asserting that "the company is in much better shape today than it was three years ago."

Reader Reactions:

Marcus Thorne, Media Analyst in Orlando: "Iger's legacy is the strategic pivot of the parks from physical destinations to immersive IP ecosystems. The data shows it's working brilliantly. This 'competition' he's fostering is a masterclass in internal motivation—both divisions are now pushing each other to innovate."

Priya Chen, Former Theme Park Planner in Anaheim: "As someone who worked on expansion projects, seeing the parks become the profit center is vindicating. The investment in Star Wars: Galaxy's Edge and Avengers Campus wasn't just fan service; it was a radical bet on experiential entertainment that paid off. The next CEO must protect this creative investment ethos."

David K. Miller, Shareholder Advocate: "This 'healthy competition' narrative is a polite smokescreen. The entertainment division's profit is down 35%! Streaming is still on shaky ground. Iger is exiting before the full consequences of the Fox acquisition and streaming wars become clear. The board is promoting from within the parks division—that tells you where the real priority is, and it's not necessarily content."

Eleanor Vance, Business Professor at Northwestern: "The succession timing is critical. Iger is handing over a company that has recalibrated. The challenge for D'Amaro or any successor won't be choosing between parks and entertainment, but synergizing them. The future lies in franchises that dominate both the box office and the theme park queue."