Disney parks division Q1 outcomes present it nonetheless has room to run

All is nicely within the Magic Kingdom — and all of Disney’s different theme parks, too.

The corporate’s experiences division, which incorporates its parks, cruise ships, resorts and shopper merchandise, posted report income for the fiscal first quarter, topping $10 billion for the primary time in Disney’s greater than 100-year historical past. It additionally reported working revenue of $3.3 billion, a 6% bump from the identical interval a yr in the past.

Development on this section has supercharged within the wake of the Covid pandemic. It typically accounts for the lion’s share of the corporate’s income. For the interval ended Dec. 27, experiences represented 38% of Disney’s complete income, but generated a whopping 71% of its working revenue.

Firm executives anticipate these good instances to proceed, forecasting high-single-digit development in working revenue for the section for fiscal 2026.

“While you have a look at the footprint of the enterprise at this time, it is by no means been extra broad or extra various,” Bob Iger, CEO of Disney, stated throughout Monday’s earnings name. “And the tasks that we now have underway are going to make it much more so.”

The sturdy parks efficiency comes towards the backdrop of a CEO succession competitors that might see Chairman of Disney Experiences Josh D’Amaro step in for Iger. The Disney board is assembly this week and is predicted to vote on its subsequent CEO, in accordance with folks acquainted with the matter who spoke on the situation of anonymity about inside issues. 

Business insiders and Disney sources anticipate D’Amaro to be appointed Iger’s successor, although the choice finally lies with the Disney board and will not be remaining till administrators vote.

“The board has not but chosen the following CEO of The Walt Disney Firm and as soon as that call is made, we are going to announce it,” a Disney spokesperson stated in a press release, declining to touch upon the timing of the following board assembly.

A lot of the experiences division’s success comes from main investments to broaden the footprint of Disney theme parks, refurbish current rides and themed areas of its parks, add cruise ships to its fleet and develop its digital gaming presence. This new evolution of the section is being fueled by Disney’s library of franchises and iconic mental property.

Disney has lengthy pulled from its portfolio of content material. Disneyland opened its doorways greater than 70 years in the past with rides primarily based on “Alice in Wonderland,” “The Adventures of Ichabod and Mr. Toad,” “Peter Pan” and “Snow White.”

Whereas these traditional sights stay, the corporate’s more moderen developments have been fueled by Iger’s strategic acquisitions of 4 main movie studios — Pixar in 2006, Marvel in 2009, Lucasfilm in 2012 and twentieth Century Fox in 2019. This introduced coveted franchises beneath the Home of Mouse roof, together with Star Wars, Toy Story, the Avengers and Avatar.

“As we added IP to our steady … we gained entry to mental property that had actual worth when it comes to parks and resorts, and enabled us to lean into extra capital spending due to the boldness stage we had in enhancing returns,” Iger stated.

Having the movie and tv rights to those properties permits the corporate extra management over manufacturing and the way that interprets into rides, experiences and merchandise.

And that work continues as a part of a 10-year, $60 billion funding effort that launched in 2023.

“We have now enlargement tasks underway at each one among our theme parks,” Iger stated.

He touted the upcoming opening of the World of Frozen in Disneyland Paris and the launch of a brand new cruise ship, the Disney Journey, which is able to make berth in Asia.

On the horizon can also be a brand new villains land coming to Magic Kingdom as nicely of the reshaping of “Rivers of America,” “Tom Sawyer Island” and the “Liberty Sq. Riverboat” into an space known as “Piston Peak” — a second Vehicles-themed land modeled after America’s pure parks. At Hollywood Studios there can be a brand new “Monsters Inc.” land whereas the Muppets will take over the Rock ‘n’ Curler Coaster attraction. Animal Kingdom will host an “Encanto” journey and a brand new Indiana Jones journey.

At Disneyland, Avengers Campus, the Marvel-themed space, will get two new sights, company will get a glimpse on the Land of the Lifeless from “Coco” and Disney will construct a brand new Avatar space impressed by the surroundings in “Avatar: Fireplace and Ash.”

Internationally, Disney has struck a deal to carry a new park and resort to Yas Island within the United Arab Emirates.

The corporate’s dedication to bringing beloved IP into its parks is paying off, in accordance with Iger, notably outdoors the U.S.

“The proportion of those that go to Shanghai Disneyland simply to go to Zootopia Land may be very, very excessive,” he stated Monday.

Income from worldwide theme parks and experiences grew 7% through the fiscal first quarter, to $1.75 billion.

In fact, the corporate remains to be dealing with headwinds from the decline of worldwide guests to its home parks.

It is a development that many theme park locations in America are contending with, as general tourism to the US fell 6% in 2025. Business analysts level to increased journey prices and charges, ongoing commerce frictions and geopolitical unease for the drop in demand for journey stateside.

Regardless of this, home theme park and experiences income grew 7% through the quarter, to $6.91 billion.

New choices at Disney’s worldwide parks, the launch of a cruise ship that companies Asia and the brand new Abu Dhabi park are all ways in which Disney can faucet into that international market and interact with shoppers that aren’t making the trek to the corporate’s home locations.

— CNBC’s Julia Boorstin and Alex Sherman contributed to this report.