Disney exceeded most expectations for the second quarter, driven by strength in streaming and its U.S. theme parks that offset fewer visits by international travelers.
The Walt Disney Co. had cautioned in February that in the second quarter its Experiences division, which includes its theme parks, would likely see modest operating income growth due in part to a decline in visits from international tourists to the U.S.
There’s been a drop in foreign visitors to the U.S. attributed to several factors, including President Donald Trump’s return to the White House, tariffs, an immigration crackdown and repeated jabs about the U.S. possibly trying to acquire Canada and Greenland.
In the Experiences division, which includes Disney’s six global theme parks, its cruise line, merchandise and video game licensing, operating income climbed 5% to $2.62 billion and revenue hit $9.49 billion in the quarter. Operating income rose 5% at domestic parks, while operating income edged up 1% for international parks and Experiences.
However, overall attendance at U.S. parks declined 1% from the same time last year due to weaker visits from those abroad.
Disney said Wednesday that domestic parks and resorts are doing well, but it is aware that customers are facing inflation and soaring energy prices. The company said that it expects year-over-year attendance at its U.S. parks to improve in the current quarter.
For the period ended March 28, Disney earned $2.25 billion, or $1.27 per share. A year earlier it earned $3.28 billion, or $1.81 per share.
Stripping out one-time gains and losses, earnings were $1.57 per share, easily beating the $1.49 that Wall Street expected, according to analysts polled by Zacks Investment Research.
The Burbank, California, company reported revenue of $25.17 billion, which was slightly above expectations.
Revenue for Disney Entertainment, which includes the company’s movie studios and streaming service, climbed 10%, while revenue for the Experiences division, rose 7%.
Disney is preparing for the release of several films, including “The Mandalorian & Grogu,””Toy Story 5” and the live-action “Moana.”
“Franchise films like these strengthen our most strategic asset – our intellectual property – and help fuel our streaming, consumer products, experiences, and games businesses over years and generations,” CEO Josh D’Amaro and Chief Financial Officer Hugh Johnston said in a statement.
D’Amaro was named to succeed Bob Iger as Disney’s CEO in February. He became the 9th CEO in the more than 100-year-old company’s history. He has overseen the company’s theme parks, cruises and resorts since 2020.
Disney still anticipates double-digit growth for fiscal 2027 adjusted earnings per share, excluding the impact of an extra week in the period.
Shares of Disney rose more than 4% before the market opened.
