Disney CEO Details Brand Priorities in Employee Memo

The Walt Disney Company has delivered its first quarterly earnings report under CEO Josh D'Amaro. The results could show how the new leadership plans to address challenges across multiple business divisions.

According to Disney's Q2 2026 report, revenue increased 7% in the second quarter. The entertainment division saw revenue rise 10% while the streaming unit reported an 88% leap in operating income. The company announced cuts of around 1,000 jobs in April, a month after Josh assumed the role of CEO.

Josh sent a memo to employees following the results, originally reported on by Business Insider. "The results we reported are not just numbers on a page – they are a direct reflection of your hard work, creativity and the way you deliver for our fans every single day," he writes.

Four priorities for growth

In the memo to employees, Josh outlined four priorities for 2026. These include investment in storytelling, strengthening the streaming business, building ESPN's direct-to-consumer model and growing Disney Experiences.

The company plans to invest in what Josh described as "breakthrough creating storytelling," as releases such as The Devil Wears Prada 2 and Pixar's Hoppers perform well. Josh said these releases act as a reminder of the company's track record of "creating original IP that resonates around the world."

Product and technology innovation will play a role in the growth plan. According to Josh, Disney made "meaningful progress" during the second quarter with "product enhancements that improved the Disney+ user experience."

The company plans to increase investment in local content for UK and Korean markets. This could mean Disney is targeting regional audiences to expand its streaming subscriber base.

ESPN brand faces challenges

ESPN's operating income fell 5% in the second quarter.

The company has not yet started rights renewal negotiations with the NFL. The division faces competition in the live sports market.

Josh said ESPN's "brand strength" was clear in Q2. The company made enhancements to its app to make the product more appealing to fans.

This is part of Disney's goal of "fully capturing the power of live sports".

Live sports remain a priority for Disney as it builds its direct-to-consumer offerings. The performance of ESPN in future quarters could show whether the brand enhancements translate to revenue growth.

Disney Experiences expands reach

In Q2, Disney's cruise line launched the Disney Adventure.

The ship is the first home-ported in Asia. Josh said this is a milestone that extends "the reach of our brands to new markets and new fans around the world."

The launch could mean Disney is prioritising geographic expansion in its experiences portfolio. Josh said the move reinforces the company's confidence in the long-term opportunity of Disney Experiences.

Josh concluded his letter by saying he was "grateful for the passion, resilience and optimism you bring to your work, and I'm energised by the opportunities in front of us as we lay the groundwork for Disney's next phase of growth."