Disney profits jump as streaming and U.S. parks offset weaker overseas travel

Disney profit rises as streaming and U.S. parks cushion weak overseas tourism

The Walt Disney Co. said its second-quarter profit and revenue beat expectations, pointing to strength in streaming and spending at U.S. theme parks that offset weaker international tourism. The company warned earlier this year that its parks division would likely see only modest growth in part because of declining tourism from abroad, and it reiterated that customers are facing higher inflation and soaring energy prices.

In the quarter ended March 28, Disney reported earnings of $2.25 billion, or $1.27 per share, down from $3.28 billion, or $1.81 per share a year earlier. Stripping out one-time gains and losses, Disney said earnings were $1.57 per share, above the $1.49 expected by analysts polled by Zacks Investment Research. Disney’s revenue came in at $25.17 billion, slightly above expectations.

Disney’s quarterly results came as it described a shift in travel demand after President Donald Trump returned to the White House. The company linked weaker overseas tourism to factors including tariffs, a crackdown on immigrants, and repeated jabs at allied nations. With fewer overseas visitors arriving, Disney said its U.S. theme parks and other businesses helped absorb the impact.

Within Disney’s Experiences division, which includes its six global theme parks, its cruise line, merchandise and video game licensing, operating income climbed 5% to $2.62 billion and revenue rose to $9.49 billion. Disney reported operating income rose 5% at domestic parks and edged up 1% for international parks, while overall attendance at U.S. parks fell 1% from the same time last year due to declining international tourism.

Disney said domestic parks and resorts are doing well but acknowledged that customers are dealing with heightened inflation and soaring energy prices. The company expects year-over-year attendance at its U.S. parks to improve in the current quarter. During the company’s conference call, Chief Financial Officer Hugh Johnston said Disney is not seeing any change in consumer behavior so far from elevated gas prices, while the business remains mindful of economic conditions and can make adjustments if needed.

Disney’s entertainment segment also posted growth. Disney said revenue for Disney Entertainment, which includes its movie studios and streaming service, climbed 10% in the quarter, while revenue for the Experiences division rose 7%. After the results were released Wednesday, Disney shares jumped 8%.

On the content side, Disney said it is preparing for releases including “The Mandalorian & Grogu,” “Toy Story 5” and the live-action “Moana.” In a joint statement, CEO Josh D’Amaro and Johnston said franchise films like those strengthen what they called the company’s “most strategic asset” — its intellectual property — and help fuel Disney’s streaming, consumer products, experiences and games businesses “over years and generations.”

D’Amaro, who succeeded Bob Iger as CEO in March, took over after overseeing Disney’s theme parks, cruises and resorts since 2020. Just over a month into the role, D’Amaro faced political turbulence that had also tested Iger’s later years at the company, including clashes with Donald Trump involving Disney’s owned broadcaster ABC. Last week, both Donald Trump and Melania Trump called for ABC to fire Jimmy Kimmel after he described the first lady as having “the glow of an expectant widow,” according to the AP report.

The AP report said Kimmel made the comment before a man with a gun stormed the White House Correspondents’ Association dinner and Trump was spirited out of the room by the Secret Service. It also said Kimmel was suspended by ABC last year following a comment made by the late night host about assassinated conservative leader Charlie Kirk, a decision encouraged by Trump’s FCC chairman, Brendan Carr, and that ABC later brought Kimmel back.

Disney also said it still anticipates double-digit growth for fiscal 2027 adjusted earnings per share, excluding the impact of an extra week in the period. The company’s outlook, along with its efforts to lean on streaming and major franchise releases, sets the stage for how it manages parks demand if international travel remains weaker.