The Walt Disney Corporate reported its first quarter fiscal 2026 effects this morning with CEO Bob Iger and CFO Hugh Johnston highlighting the corporate’s successes, whilst acknowledging demanding situations forward. This covers the great & dangerous of those effects as they relate to Walt Disney International & Disneyland, together with observation about global headwinds, park attendance, lodge occupancy & extra.
Corporate-wide, Disney’s beat forecasts on profits consistent with percentage of $1.63 adjusted vs. $1.57 anticipated, in addition to on income, with $25.98 billion vs. $25.74 billion anticipated. Internet source of revenue for the quarter used to be $2.48 billion, down from $2.64 billion in the similar duration a yr previous. General income for Disney’s fiscal first quarter used to be kind of $26 billion, up 5% yr over yr.
In Disney’s outlook for fiscal yr 2026, the corporate mentioned it’s on course to repurchase $7 billion inventory. It additionally expects double-digit enlargement in adjusted profits consistent with percentage and $19 billion in money supplied by way of operations. In a while after reporting those effects, and amid swirling succession rumors, Disney’s inventory used to be down quite in after hours buying and selling.
“We’re proud of the begin to our fiscal yr, and our achievements replicate the super growth we’ve made,” mentioned Robert A. Iger, Leader Government Officer, The Walt Disney Corporate. “We delivered robust field workplace efficiency in calendar yr 2025 with billion-dollar hits like Zootopia 2 and Avatar: Fireplace and Ash, franchises that generate worth throughout lots of our companies. As we proceed to control our corporate for the long run, I’m extremely happy with all that we’ve achieved over the last 3 years.”
Streaming used to be as soon as once more a brilliant spot within the trade as shoppers endured to show clear of the pay TV package. Sadly, final quarter used to be the general time that Disney reported subscriber stats–in a transfer that adopted trade chief Netflix–however the streaming unit did report $500 million in running source of revenue, an building up of kind of $200 million yr over yr.
Unsurprisingly, the theme parks are as soon as once more a brilliant spot–and the point of interest in this web page–so let’s flip to that phase…
Disney’s Reports phase (together with Parks & Hotels) delivered report income for the quarter, breaking the $10 billion barrier for the primary time ever.
Disney’s home theme parks recorded $6.91 billion in income, with the global parks reporting $1.75 billion in income. (The steadiness of the $10 billion got here from shopper merchandise, which is a part of the phase.) That used to be an building up of seven% yr over yr for each. Walt Disney International and Disneyland reported attendance will increase, whilst “global visitation used to be softer,” CFO Hugh Johnston mentioned.
In its 2d quarter outlook, Disney warned of best modest running source of revenue enlargement because of a mix of things, together with global visitation headwinds at Walt Disney International & Disneyland, pre-launch prices for the Disney Journey at Disney Cruise Line and pre-opening prices for International of Frozen at Disneyland Paris.
Drilling down somewhat deeper, Disney’s 10-Q confirmed that attendance used to be up 1% yr over yr within the first quarter on the home theme parks. This contrasts each the similar quarter final yr (relative to 2024), when attendance used to be down 2%, and the final complete fiscal yr, when attendance used to be down 1%.
The background this is Hurricanes Helene and Milton in 2024, the latter of which led to the parks to near and had a protracted tail of decrease crowds because of cancellations within the days and weeks afterwards. The opposed affect of the hurricanes used to be $120 million on running source of revenue, and Disney additionally attributed the two% quarterly lower to those hurricanes.
In brief, the hurricanes made for an more uncomplicated comparability to lap. And if the rest, being up only one% within the absence of any hurricanes this quarter, approach Walt Disney International and Disneyland are nonetheless down 1% underneath the baseline that we will have to’ve anticipated to look in an ordinary surroundings if attendance have been in fact preserving secure. It will have to be attention-grabbing to look what occurs with attendance subsequent quarter.
In some distance much less sudden information, home parks reported an building up in consistent with visitor spending of four%, which is quite important but in addition just about par for the path at this level. The final complete fiscal yr had 5% enlargement, and maximum quarters were within the 3% to six% vary.
Disney doesn’t in particular say what drove upper consistent with visitor spending. Our absolute best wager is upper costs on tickets, meals, and just about the whole thing else. Lightning Lane costs also are up around the board, after which there’s the new-ish Premier Go.
Now not coincidentally, payment will increase hit at first of the hot fiscal yr, with just about across-the-board will increase by way of about 3-6%. What we’ve observed in recent years with payment will increase is extra modest ones holding tempo with inflation, and the rise in consistent with visitor spending may in large part be an outgrowth of that.
All the way through the Q&A, Johnston used to be requested concerning the trajectory of Walt Disney International, and the intended bounceback in attendance for the quarter.
Johnston stated that Walt Disney International benefited from the comparability to the hurricanes, however mentioned that the home parks have been up independently of that. He presented no rationalization as to how, however once more, we’d indicate that Disney prior to now attributed the two% decline completely to the hurricanes. By way of our math, being up 1% up after 2% down remains to be down general.
Johnston additionally shared that ahead bookings are up 5% for the overall yr, however weighted for the again part (the following fiscal yr begins on October 1, 2026, so the again part of the fiscal yr probably approach kind of June via September). He shared that bookings are trending undoubtedly, and that there’s no replace to steerage.
On this case, there’s each and every explanation why to take Johnston’s phrase about bookings at face worth. He made an identical feedback all through profits calls final yr, which enthusiasts doubted because of Epic Universe, and in truth, occupancy for the overall yr used to be up.
Walt Disney International has already launched a flurry of offers for the primary part of 2026, together with some exceptional ones. Whilst some may construe those as a wake-up call of a looming slowdown, our view is that Walt Disney International is attempting to seize extra bookings previous within the yr.
There are possibly a number of causes for this, from financial uncertainty and shopper self belief to the global headwinds (mentioned underneath). Regardless, it’s a savvy solution to lock-in bookings additional prematurely. And bookings being up 5% yr over yr is sure information, particularly since bookings have been additionally robust at this similar level final yr; it’s no longer merely a very simple comparability.
We’ve observed that over the past couple of years with the most efficient particular provides launched some distance previous than standard (by way of ancient requirements), and steadily best to be had for a restricted time. Then there were extra competitive that roll out on the last-minute, with extra mediocre/standard offers in between.
Then there’s lodge occupancy, which higher from 85% to 87% at Walt Disney International and Disneyland all through the primary quarter. Since there are exponentially extra Disney-owned resorts in Florida than California, that is in large part a tale of Walt Disney International’s energy.
That is precisely the place issues stood as of the top of the final fiscal yr, with 87% being a historically-high quantity. It seems that Disney contained that momentum within the first quarter.
World occupancy used to be additionally up, expanding from 86% to 87%. It’s a an identical tale with global occupancy, which used to be up 5% within the final complete fiscal yr, and maintains that increased degree within the first quarter of 2026.
Upper occupancy is also using upper consistent with visitor spending. Lodge prices are a large part of holiday bills, so transferring off-site remains to on-site doesn’t simply spice up occupancy. It improves consistent with visitor spending numbers, too.
All the way through the Q&A, Johnston used to be as soon as once more requested to provide extra observation about how the home parks have observed successful to global visitation (probably for the explanations mentioned in Canadians Are Canceling Walt Disney International Holidays).
Johnston shared that the corporate didn’t have as a lot advance visibility into global tendencies as a result of a disproportionate selection of the ones visitors keep off-site (probably in holiday house leases since they in large part keep longer).
He indicated that they have been in a position to forecast this from different resources, although, which printed a looming slowdown–explaining the connection with global visitation headwinds within the ahead steerage. Because of this, Walt Disney International pivoted its advertising and marketing and gross sales efforts to concentrate on extra of a home target audience with the intention to stay attendance and occupancy charges excessive. Johnston didn’t percentage specifics or numbers concerning the lower in global guests.
This were been addressed on a few earlier calls final yr, at which level Johnston mentioned Walt Disney International and Disneyland had “observed just a little of an affect” of kind of 1% to one.5% in a global downtrend. On the time, what Disney anticipated going ahead used to be very similar to that, stating that they have been “greater than making up for it with home attendance–attendance on the parks has been terrific.”
We not too long ago theorized that the slowdown amongst global attendees may hit Walt Disney International more difficult in 2026 than final yr, because of the lag between reserving and touring. The most efficient global promos are launched a complete yr prematurely and have been locked-in lengthy earlier than the global tensions emerged, and guests are much less prone to cancel an current shuttle that’s at the books than they’re not to guide a long run one. According to each Johnston’s feedback and the ahead steerage, apparently this lagged global slowdown thesis used to be/is right kind.
Curiously, Orlando World Airport not too long ago launched its airline job file for November, revealing that global passenger site visitors higher by way of 2.7%, proceeding the spectacular run of 56 consecutive months of enlargement. We might word that this price of enlargement has decelerated, however it’s nonetheless enlargement.
The hot button is that the primary quarter of fiscal 2026 is but every other of enlargement for Parks & Hotels. And it’s going down, as soon as once more, regardless of Common Orlando opening Epic Universe. Now not best that, however it’s being fueled largely by way of historically-high lodge occupancy. Those numbers are essentially pushed by way of Walt Disney International bookings since that’s the place the resorts are (most commonly) positioned.
Despite the fact that it’s ostensibly up 1% year-over-year, we stay fascinated by attendance given the straightforward comparability because of the hurricanes within the earlier fiscal yr making for a very simple comparability. I’d be enthusiastic about understanding the breakdown between Walt Disney International and Disneyland on that.
Conversely, the rise in occupancy is spectacular–as are bookings being up 5% for the rest of the 2026 fiscal yr. Even with flat attendance, transferring remains from off-site to on-site is massive. That’s doubly true when Common Orlando opened 3 new motels throughout the final yr, and numerous different resorts have debuted not too long ago in Central Florida.
It’s additionally value acknowledging that this upper occupancy is most likely without delay because of higher particular provides. As we identified above, Walt Disney International continues to provide competitive–and from time to time exceptional–reductions for 2026.
The ones have no longer but reached the similar high-highs as final summer season, when you should strategically make the most of reductions on tickets & motels to attain the bottom costs for Walt Disney International holidays in over 6 years. Then again, maximum of the ones particular provides have been fairly last-minute, launched in overdue spring versus at the start of the yr.
The reductions in 2026 are already trending higher as of this level within the yr than they have been final yr on the similar time. Decrease costs on motels paired with upper occupancy led to upper consistent with room visitor spending, which moves us as an extraordinary win-win for visitors and Disney. That is vastly sure.
Our view is that the Walt Disney International parks have extra bandwidth lots of the yr in relation to what’s comfy crowd-wise, so we’d like to look an building up there with better affordability. Optimistically that’s exactly the function with extra competitive price tag offers (already) for 2026 and the hot survey hinting of AP offers at the horizon.
In the long run, it used to be as soon as once more a robust first quarter for the Disney Reports department and the home Parks & Hotels, specifically. Demanding situations do lie forward with softer global visitation numbers, and is the reason the competitive discounting we’ve observed already in 2026, however apparently from ahead bookings that the ones headwinds are being offset by way of the home target audience.
Walt Disney International has now reported report ends up in the final 3 quarters regardless of the outlet of Epic Universe. That are supposed to no longer be lost sight of, even if it almost certainly will probably be. Whilst Comcast’s contemporary profits name expressed pleasure and optimism for that new park’s opening, they’ve additionally hinted at one of the similar problems (capability and reliability) that we’ve been discussing for some time (see Why You Will have to Skip Epic Universe Till 2026).
As will have to be painfully glaring by way of now, Common isn’t going to consume Disney’s lunch and Epic Universe isn’t hurting Walt Disney International. Epic Universe is a brilliant theme park that will probably be a powerful power over the years. However presently, it’s nonetheless scaling up and isn’t anticipated to be at complete capability till the top of 2026. Possibly that can give Common Orlando a lodge occupancy spice up, particularly if phrase of mouth turns sure at the new park.
The “emerging tides” thesis may rather well be right kind, no less than for the 2 giant avid gamers in Central Florida. The real casualties are almost certainly the downmarket choices, which can be feeling the squeeze in Orlando and past (as mentioned in Wealthy Rescue Walt Disney International from Spending Stoop), particularly as extra price-sensitive shoppers cut back on spending.
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YOUR THOUGHTS
Ideas at the Walt Disney Corporate’s first quarter fiscal yr 2026 profits? How would you give an explanation for the will increase in consistent with visitor spending or occupancy enlargement at WDW and past? What concerning the attendance “building up” in mild of the typhoon closure comparability? Ideas at the global visitation slowdown or headwinds forward? Do you compromise or disagree with our overview? Another ideas or observation so as to add? Any questions we will be able to let you solution? Listening to your comments–even while you disagree with us–is each attention-grabbing to us and useful to different readers, so please percentage your ideas underneath within the feedback!
