Disney Parks Division’s First Quarter Results Show It Still Has Room to Operate

All is well in the Magic Kingdom – and all of Disney’s other theme parks, too.

The company’s experiences division, which includes its parks, cruise ships, hotels and consumer products, reported record revenue for the fiscal first quarter, surpassing $10 billion for the first time in Disney’s more than 100-year history. It also reported operating profit of $3.3 billion, up 6% from the same period last year.

Growth in this segment has accelerated following the Covid pandemic. It often accounts for the lion’s share of the company’s profits. For the period ended Dec. 27, experiences accounted for 38% of Disney’s total revenue, yet generated 71% of its operating profit.

Company executives expect this favorable period to continue and forecast high-single-digit segment operating profit growth for fiscal 2026.

“When you look at the company’s footprint today, it’s never been larger or more diverse,” Disney CEO Bob Iger said during Monday’s earnings conference call. “And the projects we have underway are going to make it even more true.”

The parks’ strong performance comes against the backdrop of a CEO succession contest that could see Disney Experiences Chairman Josh D’Amaro replace Iger. Disney’s board meets this week and is expected to vote on its next CEO, according to people familiar with the matter who spoke on condition of anonymity on internal matters.

Industry insiders and Disney sources expect D’Amaro to be named Iger’s successor, although the decision ultimately rests with Disney’s board and won’t be final until after directors vote.

“The Board of Directors has not yet chosen the next CEO of The Walt Disney Company and once that decision is made, we will announce it,” a Disney spokesperson said in a statement, declining to comment on the timing of the next board meeting.

Much of the Experiences division’s success comes from major investments to expand Disney’s theme park footprint, renovate existing rides and themed areas in its parks, add cruise ships to its fleet and increase its presence in digital gaming. This new evolution of the segment is powered by Disney’s library of iconic franchises and intellectual property.

Disney has long since withdrawn from its content portfolio. Disneyland opened more than 70 years ago with rides based on “Alice in Wonderland,” “The Adventures of Ichabod and Mr. Toad,” “Peter Pan” and “Snow White.”

While these classic attractions remain, the company’s most recent developments have been fueled by Iger’s strategic acquisitions of four major movie studios: Pixar in 2006, Marvel in 2009, Lucasfilm in 2012, and 20th Century Fox in 2019. This brought coveted franchises under the House of Mouse roof, including Star Wars, Toy Story, Avengers, and Avatar.

“By adding intellectual property to our portfolio…we gained access to intellectual property that had real value in terms of parks and resorts, and allowed us to dedicate more capital expenditures because of the confidence we had in improving returns,” Iger said.

Owning the film and television rights to these properties allows the company more control over production and how that translates into rides, experiences and merchandise.

And this work continues as part of a 10-year, $60 billion investment effort launching in 2023.

“We have expansion plans underway at each of our theme parks,” Iger said.

He praised the upcoming opening of Frozen World at Disneyland Paris and the launch of a new cruise ship, the Disney Adventure, which will stop in Asia.

Also on the horizon is a new land of villains arriving in Magic Kingdom, as well as revamping “Rivers of America,” “Tom Sawyer Island” and the “Liberty Square Riverboat” into an area called “Piston Peak” – a second car-themed land modeled after America’s nature parks. At Hollywood Studios, there will be a new “Monsters Inc.” land while the Muppets take over the Rock ‘n’ Roller Coaster attraction. Animal Kingdom will be home to an “Encanto” ride and a new Indiana Jones ride.

At Disneyland, Avengers Campus, the Marvel-themed area, will receive two new attractions, guests will get a glimpse of the Land of the Dead from “Coco” and Disney will build a new Avatar Zone inspired by the setting of “Avatar: Fire and Ash.”

Internationally, Disney has reached a deal to open a new park and resort on Yas Island, United Arab Emirates.

The company’s commitment to bringing much-loved intellectual property into its parks is paying off, according to Iger, particularly outside the United States.

“The percentage of people who go to Shanghai Disneyland just to go to Zootopia Land is very, very high,” he said Monday.

Revenue from theme parks and international experiences increased 7% in the fiscal first quarter, to $1.75 billion.

Of course, the company still faces challenges from declining numbers of international visitors to its national parks.

It’s a trend facing many theme park destinations in America, with overall U.S. tourism falling 6% in 2025. Industry analysts point to rising travel costs and fees, lingering trade frictions and geopolitical concern over declining U.S. travel demand.

Despite this, domestic theme park and experiences revenue increased 7% in the quarter to $6.91 billion.

New offerings at Disney’s international parks, the launch of a cruise ship that serves Asia, and the new Abu Dhabi park are all ways Disney can tap into this foreign market and engage with consumers who don’t travel to the company’s domestic destinations.

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