Disney Q1 Sees 5.5% International Park Visitor Decline, Canadian Attendance Down 22%
Disney’s Q1 report showed international visitors to US parks fell 5.5% in 2025, led by a 22% drop in Canadian attendance, while domestic attendance rose 1%. CFO Hugh Johnston said Disney pivoted marketing toward US travelers after eight months of foreign visitation declines, potentially pressuring the experiences segment’s revenue.
1. International Visitor Decline Pressures U.S. Parks
The Walt Disney Company reported notable headwinds in international visitation to its U.S. theme parks during its first-quarter earnings call. According to National Travel and Tourism Office data, international arrivals to the United States fell 5.5% year-over-year through October 2025, marking the eighth consecutive month of decline. Visits from Canada were particularly weak, down 22% year-to-date as of October, while Germany, France and India also saw significant drops. Disney CFO Hugh Johnston noted that foreign guests often stay off-site, reducing the visibility of these trends, but broader travel indicators confirmed the slowdown. To counteract this shortfall, the company shifted marketing and promotional efforts toward domestic travelers, helping offset the reduction in foreign attendance.
2. First-Quarter Financial Outperformance Offset by Softer Guidance
In its fiscal first quarter, Disney delivered an adjusted EPS of $1.63, surpassing analyst forecasts of $1.57, and reported revenue of $25.98 billion versus expectations of $25.70 billion. Despite the top-and-bottom-line beats, the company’s stock declined by more than 5% following the release, as management issued conservative guidance for the upcoming quarter. Executives attributed the weaker outlook partly to continued international visitation challenges at U.S. parks and to elevated marketing spend in the Entertainment segment, which weighed on operating profit. Streaming revenue growth and a rebound in movie releases were highlighted as potential upside drivers for later in the fiscal year.
3. Experiences Segment Remains Cash Engine
Disney’s Parks, Experiences and Products division sustained its role as the primary profit generator. For the quarter ended December 27, the division posted record revenue of just over $10 billion and operating income of $3.3 billion, representing a 6% increase from the prior year. Although the segment accounted for 38% of Disney’s total revenue, it contributed 71% of segment operating income. Per-guest spending at U.S. parks rose 4% even as overall attendance grew by 1%, demonstrating the effectiveness of price and upsell strategies such as Lightning Lane access fees. Management forecasts high-single-digit operating income growth in this division for fiscal 2026, underscoring its critical role in offsetting headwinds elsewhere in the business.