Walt Disney Co. has reported a robust performance for the second quarter, surpassing many analysts’ expectations largely due to the successful rebound in its streaming segments and strong attendance at U.S. theme parks. This positive outcome comes despite a noted decline in visits from international tourists, which the company had anticipated earlier this year.
In February, Disney had warned investors that its Experiences division, which encompasses its theme parks, would likely see only modest growth in operating income. This cautious outlook was influenced by a downturn in foreign tourist attendance, which has been attributed to various socio-political factors, including the return of President Trump, ongoing tariffs, an immigration crackdown, and speculation over U.S. territorial ambitions involving Canada and Greenland.
Despite these challenges, the Experiences division, which incorporates Disney’s six global theme parks, cruise lines, merchandise, and video game licensing, reported a 5% increase in operating income, reaching $2.62 billion. Revenue from this segment climbed to $9.49 billion for the quarter. Domestic parks showed a healthy 5% rise in operating income, while international parks saw a modest 1% increase. Overall attendance at U.S. parks, however, declined by 1% from the previous year, primarily due to reduced international visitor numbers.
Disney emphasized that although its domestic parks and resorts are performing well, it remains mindful of external pressures such as inflation and escalating energy costs affecting its customers. The company anticipates a boost in year-over-year attendance at its U.S. parks in the upcoming quarter, suggesting optimism for future performance.
For the period that ended on March 28, Disney reported earnings of $2.25 billion, translating to $1.27 per share. In the same quarter a year prior, the company reported earnings of $3.28 billion, or $1.81 per share. When accounting for one-time gains and losses, the earnings per share stood at $1.57, significantly exceeding Wall Street’s forecast of $1.49, according to analysts surveyed by Zacks Investment Research.
Overall revenue for Disney amounted to $25.17 billion, slightly above expectations. The company’s Entertainment division, which includes its film studios and streaming services, experienced a 10% revenue increase, while the Experiences division reported a 7% rise.
Looking ahead, Disney is gearing up for the release of several highly anticipated films, including “The Mandalorian & Grogu,” “Toy Story 5,” and the live-action adaptation of “Moana.” Both CEO Josh D’Amaro and Chief Financial Officer Hugh Johnston highlighted that franchise films play a crucial role in bolstering Disney’s core asset—its intellectual property—which drives success across streaming, consumer products, experiences, and gaming platforms.
D’Amaro, who stepped into the role of Disney CEO in February, has been instrumental in overseeing the company’s theme parks, cruises, and resorts since 2020. He is optimistic about the company’s growth trajectory, projecting double-digit growth for fiscal 2027 adjusted earnings per share, excluding any effects from an additional week in that fiscal period.
In response to this positive news, Disney’s shares rose over 4% in pre-market trading, reflecting investor confidence in the company’s recovery and future plans.
