As Disney posted its quarterly results, the company said it was seeing strength in its streaming business and in U.S. theme-park spending that helped counteract weaker international tourism. Disney said its theme parks division had faced modest growth expectations earlier in the year, partly because travel demand from abroad had declined.
In its Experiences division, which includes Disney’s six global theme parks, its cruise line, merchandise and video game licensing, Disney said operating income rose 5% to $2.62 billion and revenue reached $9.49 billion in the quarter. The company also reported that operating income rose 5% at domestic parks, while operating income edged up 1% for international parks and Experiences.
Disney said overall attendance at its U.S. parks declined 1% from the same time last year, crediting the drop to declining international tourism. The company tied the slowdown in international travel in the U.S. to several factors after President Donald Trump’s return to the White House, including tariffs, a crackdown on immigrants and repeated criticism of allied nations.
For the quarter ended March 28, Disney reported net earnings of $2.25 billion, or $1.27 per share, compared with $3.28 billion, or $1.81 per share, a year earlier. Stripping out one-time gains and losses, earnings were $1.57 per share and beat the $1.49 per share expected by Wall Street analysts polled by Zacks Investment Research, while revenue totaled $25.17 billion and came in slightly above expectations.
Disney Entertainment revenue, which includes the company’s movie studios and streaming service, climbed 10%, and the Experiences division revenue rose 7% in the quarter. Disney said it expects year-over-year attendance at its U.S. parks to improve in the current quarter, even as it acknowledged that customers were facing heightened inflation and soaring energy prices.
During the company’s conference call, Chief Financial Officer Hugh Johnston said Disney was not seeing any change in consumer behavior so far from elevated gas prices, while the company remained mindful of economic conditions and said it could make adjustments if needed. Shares rose about 8% Wednesday, according to the company’s results coverage.
Disney also said it is preparing for the release of several films, 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 Disney’s intellectual property and help fuel its streaming, consumer products, experiences and games businesses over years and generations.
D’Amaro, who succeeded Bob Iger as Disney CEO in March, is entering the job amid clashes between the company and President Trump’s allies that had tested Iger’s later years. Last week, Donald and Melania Trump called for ABC to fire Jimmy Kimmel after he described the first lady as having “the glow of an expectant widow,” Disney owns ABC; Kimmel made the comment before a gunman stormed the White House Correspondents’ Association dinner and Trump was spirited out of the room by the Secret Service.
Disney said it still anticipates double-digit growth for fiscal 2027 adjusted earnings per share, excluding the impact of an extra week in the period.