Disney Posts Record Revenue Amid Streaming Spat, Tourism Dip; Stock Slips
Despite posting record-breaking revenue, The Walt Disney Company saw its shares dip in pre-market trading Monday as investors weighed stellar content performance against profit pressures from a resolved carriage dispute and broader economic trends.
In its latest earnings report, Disney announced quarterly revenue surpassing $26 billion. CEO Bob Iger, whose succession plan is reportedly nearing its final stages, peppered his shareholder letter with superlatives, highlighting "historic" achievements across film, television, and parks.
The studio division was a powerhouse, generating $6.5 billion in global box office for the quarter. The performance was anchored by Zootopia 2, which Iger noted has become "Hollywood’s highest-grossing animated film ever," raking in over $1.8 billion worldwide. A significant $630 million of that total came from China, a market whose strength also boosted attendance at Shanghai Disneyland. The upcoming slate, including Toy Story 5, a live-action Moana, and new entries in the Star Wars and Avengers franchises, signals continued momentum.
On the streaming front, Disney dominated household screens. Seven of the ten most-watched shows of 2025 were on Disney platforms, with the animated phenomenon Bluey leading for a second consecutive year, amassing 45 billion viewing minutes. ESPN also shattered records, delivering its most-watched college football regular season in over a decade and an NFL divisional playoff game that drew 38 million viewers—the largest audience in Disney's history.
However, operating income and earnings per share declined year-over-year. Analysts point to two key factors: a now-resolved carriage fee dispute with YouTube that impacted the quarter's bottom line, and higher marketing and production costs associated with an increased volume of film releases.
Iger also alluded to "international visitation headwinds at our domestic parks," a cautious reference to a sustained decline in travel to the United States. Tourism data shows visits to the U.S. have fallen for eight consecutive months, down 6% annually even as global travel hits new peaks—a trend that began during the previous administration and continues to affect destination businesses.
What Analysts and Observers Are Saying:
"The content engine is firing on all cylinders, which is what matters long-term," says Michael Torres, a media analyst at Crestwood Advisors. "The YouTube issue was a one-time drag, and the park attendance dip is a macroeconomic story, not a Disney-specific one. The underlying brand strength is undeniable."
"These 'headwinds' Iger mentions are self-inflicted wounds from years of poor policy," argues Lisa Chen, a columnist for The Economic Digest. "When you combine an increasingly hostile immigration climate with a strong dollar, of course tourism suffers. Disney's parks are caught in a political crossfire they helped fund."
"As a parent, I'm not surprised by the Bluey numbers," shares David Miller, a small business owner from Ohio. "That show is on a constant loop in our house. It's the one subscription we never think about canceling."