Disney Parks Suffer As Foreign Visitors Shun US
By Reuters | 02 Feb, 2026

A 6% drop in foreign visitors to the US under Trump policies has caused a sharp drop in visitors for the Disney unit that provides most of its operating profits.

Walt Disney's warning that a decline in international visitors to its U.S. theme parks and a slump in earnings at its TV and film division sent shares down nearly 7% in early morning trading on Monday.

The company warned of some "headwinds" among international visitors without giving a reason. CFO Hugh Johnston added that Disney is focusing promotional efforts on U.S. consumers, as it has "less visibility" into international visitors.

Disney's entertainment unit, which includes the company's film studios, television networks and streaming services, was propelled by a slate of theatrical releases including "Zootopia 2," and “Avatar: Fire and Ash." However, that division reported a 35% drop in operating profit in part because of the costs related to marketing an expanded slate of holiday movies.

Disney also stopped disclosing revenue and operating income for its TV channels. Johnston said it was “no longer relevant” in a world where entertainment is distributed broadly.

The media and entertainment giant is expected to name a new chief executive to replace Bob Iger early this year. Hollywood executives believe Josh D'Amaro, the chairman of the experiences division, is the front-runner.

"In our view, succession has been an overhang on the shares recently," wrote Bank of America's Jessica Reif Ehrlich, noting press speculation that D'Amaro will be named the next CEO. "And given the importance the Experiences segment has to the total consolidated earnings of DIS, we believe this announcement will be well-received by the investment community."

Iger, who is expected to step down at the end of the year, said he is setting up the next chief executive to find opportunities to grow the company. “In the world that changes as much as it does, in some form or another trying to preserve the status quo was a mistake, and I'm certain that my successor will not do that,” he said.

The experiences unit, which includes Disney's parks, cruises and consumer products, carried the December quarter, generating $10 billion in revenue and 72% of the company's quarterly operating profit of nearly $5 billion.

The United States registered a 6% drop in foreign visitors in 2025 even as global tourism generated a 6.7% rise in spending, according to WTTC, an industry group. Concerns including U.S. anti-immigration policies pushed tourists to European countries such as Spain and France, as well as Japan.

The company's overall revenue rose 5% to $26 billion for its fiscal first quarter ended December 27. That topped the consensus revenue forecast of $25.7 billion, according to analysts surveyed by LSEG. Disney reported income before taxes of $3.7 billion, besting Wall Street's projection of $3.5 billion.

Adjusted per-share earnings fell to $1.63, down 7% from a year earlier but better than analysts' estimate of $1.57 per share.

Disney reaffirmed its full-year forecast of double-digit per-share earnings growth, compared with fiscal 2025. It estimates it will bring in $19 billion in cash from operations, and is on track to repurchase $7 billion in stock. 

Disney and YouTube TV's two-week contract dispute, which resulted in millions of subscribers losing access to Disney-owned networks such as ESPN, produced a $110 million hit to the company's sports unit, which reported a 23% drop in operating income for the quarter.

Disney's streaming services, which include Disney+, Hulu and ESPN, reported a 72% spike in operating income to $450 million. Revenue rose to $4.4 billion, up 13% from a year ago. The company no longer reports the number of streaming subscribers. 

(Reporting by Dawn Chmielewski, Additional reporting by Harshita Mary Varghese; Editing by Edmund Klamann and Nick Zieminski)