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(Sharecast News) - The Walt Disney Company posted above-forecast numbers on Monday, fuelled by strong demand for its theme parks and cruises.
Revenues at the US entertainment giant came in at $26bn in the three months to 27 December, a 5% increase and ahead of expectations for $25.7bn. Pre-tax income was 1% stronger at $3.7bn, also beating Wall Street forecasts, for $3.5bn.
Driving the growth was Disney's experiences division, which includes its theme parks, resorts and cruises. Revenues at the unit jumped 6% in the first quarter to $10bn, which Disney called a record.
Attendance at its US parks was up 1% and spending per capita 4% stronger.
Elsewhere, entertainment saw revenues jump 7% to $11.6bn, though higher marketing costs weighed heavily on operating income, helping to send it sliding 35% to $1.1bn. Blockbuster film Avatar: Fire and Ash was released in the last week of the first quarter.
Its smallest division, sports, posted a 1% uplift in revenues to $4.9bn.
Bob Iger, Disney's veteran chief executive, said: "We are pleased with the start to our fiscal year.
"We delivered strong box office performances in calendar year 2025, with billion-dollar hits like Zootopia 2 and Avatar: Fire and Ash, franchises that generated value across many of our businesses."
However, looking to the second quarter and Disney sounded a note of caution.
In particular, it flagged only modest operating income growth in experiences due to "international visitation headwinds" at its US parks, as well as pre-opening costs for the World of Frozen at Disneyland Paris.
The number of foreign tourist visits to the US fell last year, according to industry data, amid various political tensions associated with the Trump administration.
For the full year, Disney is forecasting double-digit operating income growth for entertainment, low single-digit growth in sports, and high single-digit growth in experiences.
Disney's board is due to meet this week and is widely expected to vote on a successor to Iger.
He stepped down after 15 years at the helm in 2020, only to be brought back in 2022 after his replacement, Bob Chapek, was ousted. Chapek, who had been hand-picked by Iger, steered the company through the pandemic but failed to win over either investors or Hollywood.