Disney’s US Theme Parks Thrive Amid Economic Uncertainty

Despite ongoing economic pressures and signs of consumer caution, The Walt Disney Company reported strong growth in its US theme park business during the latest quarter, underscoring the continued appeal of its entertainment offerings even in a cost-conscious environment.

For the quarter ending March 29, revenue from Disney’s domestic parks rose 9% to $6.5 billion, while operating profit increased 13% to $1.82 billion. Hotel bookings, park attendance, and guest spending on merchandise and food all saw gains, defying broader consumer trends that have led many Americans to scale back on discretionary spending.

Disney’s experiences segment—which includes theme parks, cruise lines, and other consumer products—remains a key driver of the company’s overall profitability. It contributed $2.49 billion in operating income this quarter, up 9% from the prior year. Disney maintained its projection for full-year growth in the segment’s operating income, now expected to rise by as much as 8%, compared with 4% in 2024.

The strong park performance helped lift Disney’s adjusted earnings per share to $1.45, a 20% year-over-year increase and well ahead of Wall Street expectations of $1.19. Total revenue climbed 7% to $23.6 billion, also beating analyst forecasts.

The results come as signs of slowing consumer travel have emerged. Passenger traffic at Orlando International Airport declined 4% in the first quarter, and Disney has introduced steep summer discounts for Florida residents, including multiday tickets at 40% off. Nonetheless, guest engagement at Disney’s Florida and California parks remained robust.

Internationally, the company saw some setbacks. Operating income from its global parks dropped by $67 million to $225 million, largely due to lower attendance and increased operational costs at its Shanghai and Hong Kong resorts.

Beyond its parks, Disney also posted better-than-expected performance in its streaming segment. Disney+ added 1.4 million subscribers during the quarter, bringing the total to 126 million, bucking analyst predictions of subscriber losses. The broader direct-to-consumer segment, which includes Hulu, recorded $336 million in operating profit—up from just $47 million a year earlier.

Meanwhile, Disney’s traditional television business continued to struggle. Revenue from networks such as ABC fell 13% to $2.4 billion, though reduced programming expenses allowed the segment to report a modest 2% increase in operating income.

The company’s sports division, including ESPN, saw a 12% decline in operating income due to increased costs and a write-down associated with a discontinued streaming project. Still, Disney raised its full-year growth forecast for the segment to 18%, up from a previous estimate of 13%.

While Disney’s film studio performance was mixed—with strong carryover titles like Mufasa: The Lion King offset by underwhelming releases such as Snow White—management remains optimistic about its future slate.

Chief Executive Bob Iger acknowledged the uncertain economic outlook, including the potential effects of new tariff policies, but emphasized Disney’s positive trajectory. The company raised its full-year earnings forecast, now expecting adjusted EPS to grow 16% to $5.75, surpassing both its previous guidance and market expectations.

With input from the New York Times, Market Watch, the Wall Street Journal, and the Financial Times.