Disney reported second-quarter profit and revenue that beat expectations, with the company pointing to strong performance from its streaming service and to spending at U.S. theme parks that helped offset weaker international tourism. In results released Wednesday, Disney said it expects attendance at its U.S. parks to improve in the current quarter, even as it warned that customers face heightened inflation and soaring energy prices.
Disney’s theme parks and travel business is where the international slowdown showed up most directly. The company said the overall attendance at its U.S. parks declined 1% from the same time last year, attributing the drop to declining international tourism. It had warned earlier this year that its theme parks division would likely see only modest growth, in part because of that trend.
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 reached $9.49 billion in the quarter, Disney said. The company reported that operating income rose 5% at domestic parks, while operating income edged up 1% for international parks and for Experiences overall.
Disney said Wednesday that domestic parks and resorts are doing well, while it is closely watching macroeconomic conditions. On a conference call, Chief Financial Officer Hugh Johnston said the company had not seen any change in consumer behavior tied to elevated gas prices so far, but he said the business remains mindful of economic conditions and can make adjustments if needed.
On the bottom line, Disney reported earnings of $2.25 billion, or $1.27 per share, for the quarter ended March 28. A year earlier, the company earned $3.28 billion, or $1.81 per share. Disney reported that earnings, excluding one-time gains and losses, were $1.57 per share, beating the $1.49 analysts expected, based on estimates from analysts polled by Zacks Investment Research.
Disney also reported revenue of $25.17 billion, slightly above expectations. Revenue for Disney Entertainment, which includes its movie studios and streaming service, rose 10% in the quarter, and revenue for the Experiences division rose 7%, the company said.
The company said it is preparing to release multiple films, including “The Mandalorian & Grogu,” “Toy Story 5” and the live-action “Moana.” CEO Josh D’Amaro and Johnston said in a joint statement that franchise films like those strengthen Disney’s intellectual property and help fuel its streaming, consumer products, experiences, and games businesses over years and generations.
D’Amaro took over as Disney’s CEO in March, succeeding Bob Iger, and he is managing the company with theme parks, cruises and resorts among his responsibilities since 2020. Just over a month into the job, D’Amaro faced a challenge that tested Iger’s later years: clashes with Donald Trump, after Trump and Melania Trump called for ABC to fire Jimmy Kimmel following a comment about the first lady.
In the report, the comment came before a man with a gun stormed the White House Correspondents’ Association dinner, after which Trump was spirited out of the room by the Secret Service. Last year, ABC suspended Kimmel over a comment connected to assassinated conservative leader Charlie Kirk; ABC later brought Kimmel back.
Disney said it still expects double-digit growth for fiscal 2027 adjusted earnings per share, excluding the impact of an extra week in the period. Shares jumped 8% Wednesday following the results.