Disney's theme parks revenue holds steady, despite national economic concerns

Walt Disney Co.'s theme parks and cruise line business is holding steady despite national concerns about discretionary consumer spending and higher gas prices.

The Burbank media and entertainment giant's experiences division reported $9.5 billion in revenue in its fiscal second quarter, up 7% compared with the same period a year ago.

The increase was due to higher guest spending at Disney's domestic parks and experiences, which reported a 6% bump in revenue to $6.9 billion, and more capacity on the company's cruise line with the introduction of two new ships. The segment saw a 5% increase in operating income to $2.6 billion for the three-month period that ended March 28.

Disney's theme parks segment was under close scrutiny given the national conversation about rising consumer costs and gas prices due to the U.S.-Iran war. Analysts had wondered whether consumers would tighten their belts and forgo vacations given the higher travel costs.

So far, the company has not seen "any change" in consumer behavior from higher gas prices and isn't currently seeing a "material impact" on the rest of the fiscal year, Disney Chief Financial Officer Hugh Johnston said during an earnings call Wednesday with financial analysts. Advance bookings for Walt Disney World Resort are "pacing up strongly," and booked cruise line occupancy remains on par with last year, he said.

"However, we're mindful of the macro uncertainty consumers are facing, and we're not immune to the impacts, including how a significant further rise in fuel prices from current levels could eventually lead to changes in consumer behavior," he said.

Disney did see a 1% decline in attendance at its U.S.-based parks compared with the prior year, which the company attributed to "continued softness" in international visitors, but said it was starting to move past those issues. Company executives have previously said Disney pivoted marketing and promotional efforts to attract local visitors.

Last quarter, executives indicated that results in the company's second fiscal quarter could be affected, in part, by "international visitation headwinds," a nod to the lower number of foreign visitors now traveling to the U.S.

"Over the past few quarters, the team has successfully navigated known attendance headwinds," Disney Chief Executive Josh D'Amaro said during the call.

He added that the company expects attendance trends at Disney's domestic parks to improve in its fiscal third quarter when compared with the results from this past quarter.

Wednesday marked D'Amaro's first earnings call as chief executive of the Mouse House, and he laid out his key priorities: investing in creative storytelling, strengthening the company's streaming business, capitalizing on the appeal of live sports by bolstering ESPN's direct-to-consumer business and continuing growth in Disney's theme parks and cruise line businesses.

"Our next phase of growth, it'll be centered on creative excellence, it'll be a more connected fan experience, and we'll use technology as an accelerant," D'Amaro said. "Our parks, they're essentially the physical centerpiece of the company. And similarly, we're building Disney+ to serve as the immersive, interactive, digital centerpiece of the company."

Investors seemed to like what they heard, as shares of Disney rose 7.8% to $108.30 on Wednesday morning.

The company's overall earnings were powered by its entertainment business, which posted revenue of $11.7 billion, up 10% compared with the prior year's quarter.

That growth was driven by big gains for Disney's streaming services - Disney+ and Hulu - which raked in nearly $5.5 billion in revenue, an increase of 13% compared with 2025, thanks to higher subscription fees from user growth and more advertising revenue. Operating income for the streaming business jumped 88% to $582 million.

Disney's entertainment segment also had a stronger quarter at the theatrical box office, with standout performances from 20th Century Studios' "Avatar: Fire and Ash," the animated sequel "Zootopia 2" and Pixar's "Hoppers."

Overall, the company reported $25.2 billion in revenue, a 7% bump from the prior year. Income before income taxes totaled $3.4 billion, an increase of 9% compared with the same period in 2025, while operating income rose 4% to $4.6 billion. Earnings per share, excluding certain items, was $1.57, compared with $1.45 a year earlier.

Disney's sports segment, which includes ESPN, reported revenue of $4.6 billion, a 2% increase from the same period in 2025. It brought in operating income of $652 million, a 5% slide that the company attributed to higher sports rights costs and the absence of UFC pay-per-view revenue compared with last year.

Disney also alluded to the company's view of artificial intelligence as a "meaningful long-term opportunity," saying it could play a role in content creation and production, monetization, workforce productivity, consumer and guest experiences and enterprise operations.

"At the same time, we are committed to implementing AI in a way that keeps human creativity at the center of everything we do and respects creators and the value of our intellectual property," D'Amaro and Johnston said in a shareholder letter.

After noting OpenAI's closure of the text-to-video AI tool Sora, which Disney had planned to invest in, D'Amaro and Johnston said the company will "continue to explore" commercial opportunities with OpenAI and other companies.

This story originally appeared in Los Angeles Times.

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This story was originally published May 6, 2026 at 3:53 AM.