New York, Feb 2, 2026, 18:38 EST — After-hours
- Disney shares dropped 7.4% to $104.45 during regular trading but edged up roughly 0.5% in after-hours.
- The company surpassed profit estimates but warned of weaker international demand at its U.S. parks.
- Investors are zeroing in on the parks outlook, streaming earnings, and buzz around CEO succession.
Shares of The Walt Disney Company dropped 7.4% on Monday, closing at $104.45 before inching back up to roughly $105.00 in after-hours trading. The decline came after the company reported quarterly results and issued a cautious outlook on short-term growth for its theme-park segment.
The reaction is crucial since Disney’s parks and consumer-products division has long been the group’s profit backbone. Investors are still weighing how quickly streaming can take on a bigger role as traditional pay-TV declines. When that parks engine falters, the broader narrative becomes tougher to push.
Disney pointed to “headwinds” in international visitors at its U.S. theme parks, with CFO Hugh Johnston noting the company now has “less visibility” on global trends and is relying more heavily on American customers. Ben Barringer, Quilter Cheviot’s head of technology research, said the stock’s drop “is very much to do with the parks business.” Bank of America’s Jessica Reif Ehrlich added that uncertainty around CEO succession has weighed on the shares. Reuters
Disney reported a 5% revenue increase to $26.0 billion for its fiscal first quarter ending Dec. 27, but adjusted earnings per share dropped to $1.63. The company’s subscription video-on-demand segment—covering Disney+ and Hulu—generated $450 million in operating income. Meanwhile, the sports unit’s operating income declined to $191 million, weighed down by a YouTube TV carriage disruption that shaved about $110 million from results. Looking ahead, Disney projects around $500 million in SVOD operating income this quarter and reaffirmed its plan to buy back $7 billion of stock in fiscal 2026.
Adjusted EPS came in above the analyst consensus of $1.57 per share, with revenue hitting $25.98 billion, roughly matching forecasts, AP reported, referencing Zacks Investment Research. Johnston told analysts that Disney shifted its marketing and promotions focus to domestic visitors in response to softer international tourism trends.
Disney stuck to familiar themes in its update: major film franchises, streaming adjustments, and ramped-up investments in parks and cruises. The company plans to unveil a new World of Frozen attraction at Disneyland Paris next month. Meanwhile, its Disney Adventure cruise ship is set to depart from Singapore on March 10.
Investors face a tricky message: earnings beat expectations, yet Disney signaled slower growth in areas where it’s leaned on pricing power. Streaming profits are on the rise, but the stock tends to react more to the parks’ performance next quarter than to the apps’ outlook a year down the line.
Downside risks loom if international travel remains sluggish through spring or if rising sports-rights fees hit harder than anticipated. With Disney’s packed release schedule, marketing and production expenses can rapidly shift the bottom line.
Traders now focus on whether management can stabilize the parks story this quarter and maintain upward momentum in streaming profits, all while CEO succession chatter remains subdued. In the short run, investors will seek new signals on demand ahead of the March 10 Disney Adventure launch.
