Disney theme parks are taking a hit as international tourists skip the U.S.

Disney’s first-quarter 2026 earnings report showed strong results, beating analyst expectations with $25.98 billion in revenue and an adjusted earnings per share of $1.63. This performance was significantly driven by the Experiences unit, which achieved over $10 billion in quarterly revenue for the first time, encompassing theme parks, cruises, and vacation clubs. The company also benefited from two major box office hits, Zootopia 2 and Avatar: Fire and Ash, each surpassing $1 billion globally. Additionally, Disney highlighted strong quarterly ratings for its sports channel ESPN, commanding over 30% of all sports viewership. Despite these successes, investors were unsettled by disappointing second-quarter forecasts, causing Disney’s shares to slide over 7% to $104.72 on Monday. The forecast anticipated only "modest operating income growth" for theme parks, primarily due to a decline in international tourist visits to the U.S. CEO Bob Iger noted that Disney adjusted its marketing to target a more domestic audience to maintain high attendance rates in response to this decline. Shares briefly recovered on Tuesday following the news of Josh D’Amaro being named the new CEO, effective March 18, but soon fell again. The decrease in international tourism is speculated to be linked to various geopolitical factors, including the previous administration’s policies on immigration and tariffs, and aggressive foreign policy stances.