Disney is a kind of corporations that makes headlines virtually each day. Whether or not it is as a result of it’s elevating theme park entry costs or streaming charges, or as a result of persons are protesting varied firm insurance policies, one other day brings one other improvement.
This week’s headlines centered on the practically 8% drop in share costs following the corporate’s November 13 earnings name.
You’d assume the information should have been actually dangerous.
However in actual fact, The Walt Disney Firm reported sturdy fourth-quarter and full-year outcomes Nov. 13, led by its Parks and Experiences division, which has been its most dependable progress engine as its conventional media division revenues face strain.
- Disney’s fiscal fourth-quarter income was $22.46 billion, roughly flat yr over yr, whereas web earnings jumped to $1.31 billion, up from $460 million a yr earlier.
- For the complete yr, Disney reported $94.4 billion in income and $12.4 billion in web earnings, will increase of three% and 170%, respectively.
- Adjusted earnings per share have been $1.11 for the quarter and $5.93 for the complete yr —up 19% from fiscal 2024.
- Disney introduced plans to double its share-repurchase authorization to $7 billion and lift its annual dividend to $1.50 per share, signaling confidence in money circulate.
Supply: Disney
The Walt Disney Firm’s Parks and Experiences division has been its most dependable supply of progress.
Picture supply: Shutterstock
Disney theme parks and experiences are crushing it
The standout of the quarter was the Experiences section, which incorporates Disney’s theme parks, resorts, and cruise line.
In accordance with the corporate’s govt commentary: “Our Experiences segment delivered record operating income of $1.9 billion for Q4 (up 13% compared to the prior-year quarter) due to higher results at International Parks & Experiences.”
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Worldwide Parks & Experiences working earnings rose 25%, fueled by “higher attendance and an increase in guest spending, partially offset by higher costs for new guest offerings.” Home parks earnings grew 9% resulting from cruise-line efficiency.
Total, the Experiences unit generated $1.9 billion in This autumn income — up 13% in comparison with the yr prior — and $10 billion for the complete yr, a 8% improve. Bookings for fiscal 2026 Q1 are up 3%, whereas visitor spending at Walt Disney World Resort is up 5%.
Slower progress forward for Disney
Disney’s steerage factors to moderation in progress for FY 2026. The corporate expects high-single-digit share progress in section working earnings in comparison with fiscal 2025, with progress weighted to the second half of the yr, in keeping with the earnings report.
Executives additionally highlighted elevated working prices tied to expansions and new cruise ships:
“$160 million in pre-opening expenses, driven by the Disney Adventure and Disney Destiny … $120 million in dry-dock expenses.”
Whereas progress stays constructive, these figures counsel that year-over-year good points could also be much less pronounced than the report outcomes of FY 2025, significantly within the first half of the yr.
Increasing the Disney theme park footprint
Disney is constant to take a position closely in its world community, particularly within the Parks and Experiences sector. Plans for late 2025 and 2026 embody:
- Two new cruise ships — the Disney Future (launching this month) and the Disney Journey (first ship home-ported in Asia, March 2026).
- Growth tasks in any respect main parks, together with new sights in Disneyland Paris and Hong Kong Disneyland and the brand new theme park in Abu Dhabi at present in improvement.
Extra on journey:
- U.S. authorities points severe warning for cruise passengers
- Delta Air Strains makes a baggage change that vacationers will like
- United Airways passenger incident triggers fast response
“With expansion projects underway at every one of our theme parks, five additional cruise ships scheduled for launch beyond fiscal 2026, and a new theme park planned for Abu Dhabi, the strategic investments we are making now will help ensure our offerings remain best-in-class and appeal to audiences worldwide well into the future,” CEO Bob Iger and CFO Hugh Johnston emphasised through the name.
Disney parks attendance traits
U.S. park attendance was modestly down (~1%), however Disney offset this with increased visitor spending, sturdy worldwide attendance, and cruise-line progress. Analysts notice that Disney is more and more specializing in yield over quantity, utilizing dynamic pricing, premium experiences, and cross-platform integration with Disney Plus to spice up income per visitor.
“At its theme parks, Disney can deliver a better experience by charging higher prices and selling fewer tickets. That may not be something people want to hear out loud, but it’s a reality,” famous TheStreet Co-Editor and Disney journey professional Dan Kline.
The mix of worldwide progress and better visitor spending helps maintain income, whilst home attendance exhibits indicators of plateauing.
Disney’s parks and experiences unit stays the corporate’s clearest progress engine. Whereas full-year steerage signifies that progress in 2026 could also be slower than final yr, the corporate’s strategic investments in cruise enlargement, new sights, and world park tasks place the enterprise for continued momentum.
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