Disney posted a strong first quarter, powered by box-office hits ''Zootopia 2'' and ''Avatar: Fire and Ash.''
But the entertainment giant cautioned that in the second quarter its Experiences division, which includes its theme parks, will likely see modest operating income growth due in part to a decline in visits from international tourists to the U.S.
There's been a drop in foreign visitors to the U.S. since last year that travel analysts warn could persist well into the future. The decline has been attributed to several factors, including President Donald Trump's return to the White House, tariffs, an immigration crackdown and repeated jabs about the U.S. possibly trying to acquire Canada and Greenland.
The Walt Disney Co. earned $2.4 billion, or $1.34 per share, for the three months ended Dec. 27. It earned $2.64 billion, or $1.40 per share, a year ago.
Removing one time charges and costs, earnings were $1.63 per share. That's better than the $1.57 per share that analysts polled by Zacks Investment Research expected.
Disney, based in Burbank, California, reported revenue of $25.98 billion. Wall Street was calling for slightly higher revenue of $25.99 billion.
Revenue for Disney Entertainment, which includes the company's movie studios and streaming service, climbed 7%, while revenue for the Experiences division, rose 6%.
''We are pleased with the start to our fiscal year, and our achievements reflect the tremendous progress we've made,'' CEO Bob Iger said in a statement. ''We delivered strong box office performance in calendar year 2025 with billion-dollar hits like Zootopia 2 and Avatar: Fire and Ash, franchises that generate value across many of our businesses."
