Disney exceeded most expectations for the second quarter, driven by strength in streaming and its US theme parks that offset fewer visits by international travellers.
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 US.
There’s been a drop in foreign visitors to the US attributed to several factors, including President Donald Trump’s return to the White House, tariffs, an immigration crackdown and repeated jabs about the US possibly trying to acquire Canada and Greenland.
The Experiences division, which includes Disney’s six global theme parks, its cruise line, merchandise and video game licensing, reported 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 US 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.
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 certain items, earnings were $1.57 per share. That’s better than the $1.49 per share that analysts polled by Zacks Investment Research were calling for.
The Burbank, California, company reported revenue of $25.17 billion. Wall Street expected revenue of $25.06 billion.
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 still anticipates double-digit growth for fiscal 2027 adjusted earnings per share.
