The Walt Disney Co. reported stronger-than-expected results for its second quarter, propelled by robust performance in its streaming segment and U.S. theme parks, which helped offset a decline in international visitors. The company had previously warned in February that its Experiences division, encompassing theme parks, cruises, merchandise, and video game licensing, would see only modest operating income growth due to fewer international tourists visiting the U.S. [1].
Despite a 1% year-over-year drop in overall attendance at U.S. parks, attributed to factors such as President Donald Trump’s return to the White House, tariffs, immigration crackdowns, and geopolitical tensions, the Experiences division still posted a 5% increase in operating income to $2.62 billion and a 7% rise in revenue to $9.49 billion for the quarter. Domestic parks saw a 5% operating income increase, while international parks and Experiences edged up by 1% [1].
For the quarter ended March 28, Disney earned $2.25 billion, or $1.27 per share, compared to $3.28 billion, or $1.81 per share, a year earlier. Excluding certain items, adjusted earnings were $1.57 per share, surpassing the $1.49 per share expected by analysts polled by Zacks Investment Research. Total revenue reached $25.17 billion, also beating Wall Street’s forecast of $25.06 billion. Disney Entertainment, which includes movie studios and streaming, saw a 10% revenue increase [1].
The company acknowledged that while domestic parks and resorts are performing well, it remains mindful of consumer pressures from inflation and high energy prices. Looking ahead, Disney reiterated its expectation for double-digit growth in adjusted earnings per share for fiscal 2027 [1].
CONCLUSION
Disney’s second quarter results exceeded analyst expectations, driven by strong streaming and U.S. theme park performance despite headwinds from declining international tourism. The company’s positive outlook for double-digit EPS growth by fiscal 2027 signals continued confidence in its long-term strategy.