Analysts on Disney’s Q2 fiscal 2026 earnings call had plenty of questions about the Experiences segment — and both CFO Hugh Johnston and CEO Josh D’Amaro had detailed answers. Here is what was said.
International Visitation and Epic Universe: The Headwinds Explained
The first question went straight to something Disney park watchers have been tracking closely: the impact of Epic Universe and softer international visitation on domestic park attendance.
Johnston answered directly, confirming both headwinds had an impact in Q2 but suggested they are expected to ease.
“We expect international visitation and Epic-related headwinds to ease in the coming quarters as we begin to lap both of those impacts,” Johnston said.
Domestic park attendance was down 1% in Q2. Johnston offered important context: strip out the international visitation impact alone, and domestic park attendance would actually have grown.
He also pointed to pre-opening costs for World of Frozen and the Disney Adventure as a drag on operating income flow-through in the quarter — costs that won’t repeat in the second half of the year.
“While Q2 bore the full impact of those headwinds, our revenue growth for the quarter was 7% in Experiences,” Johnston said.
He also broadened the lens beyond domestic attendance, pointing to the company’s growing global footprint as the more meaningful measure of the business.
“Global guests — which aggregates domestic and international parks attendance along with passenger cruise days — grew more than 2% in Q2,” Johnston said. “As we look forward, we expect growth to improve in the back half, and our forward bookings are very encouraging as we look to the rest of the year.”
On the cruise side, Johnston noted that Disney has plans to expand its fleet from eight ships currently to 13 by 2031.
Gas Prices, Macro Uncertainty and Booking Trends
A question from Wells Fargo’s Stephen Hall asked whether elevated gas prices had changed consumer behavior at domestic or international parks, and whether macro pressures could affect Disney’s EPS guidance.
Johnston said there had been no visible impact so far.
“No, we haven’t seen any change in consumer behavior from elevated gas prices thus far, and aren’t currently seeing a material impact on the remainder of the fiscal year,” he said.
He then offered two concrete data points. Disney World bookings are currently pacing up strongly. And despite a 40% increase in cruise capacity, book occupancy remains in line with the prior year — a notable figure given how much new capacity has been added.
Johnston was careful not to dismiss macro risk entirely.
“We’re mindful of the macro uncertainty consumers are facing, and we’re not immune to the impacts,” he said, adding that a significant further rise in fuel prices could eventually shift consumer behavior. He noted that each business has levers in place to offset macro pressures if needed.
On guidance, Johnston held the line: 12% adjusted EPS growth for fiscal 2026 and double-digit growth for fiscal 2027, both excluding the impact of the 53rd week.
D’Amaro on Capital Investment: “More Projects Underway Than at Any Time in Our History”
Another Experiences question of the call went to D’Amaro — an update on capital expenditure plans, what he is most excited about, and when investments will drive an attendance inflection at the parks.
He confirmed that while official opening dates have not been announced for several upcoming major attractions, the pipeline is the largest it has ever been.
“We have more projects underway around the globe than at any time in our history,” D’Amaro said. “We’re being very ambitious and very aggressive on this front.”
On the specifics of where capital is being deployed in fiscal 2026, D’Amaro pointed to the new cruise ship and major expansions at Walt Disney World in Orlando, Disneyland in Anaheim, and Shanghai Disney Resort.
Looking further out, he framed the investment approach in generational terms.
“When we think about the next decade, the majority of our CapEx is earmarked for investments that are expanding our capacity,” he said. “Each one of these investments is individually justified and designed to entertain guests for literally generations to come.”
He also highlighted two capital-light expansion projects — a new cruise ship with Oriental Land Company in Japan and a new theme park in Abu Dhabi with local partner Miral — as examples of how Disney is growing its global footprint without carrying the full capital burden itself.
Q3 Attendance: Improvement Expected
Johnston also talked about near-term attendance trends.
“Demand is healthy. We’re expecting attendance at our domestic parks in Q3 compared to the prior year period to show improvement compared to the 1% decline we reported in Q2,” he said. “This will happen as headwinds related to international visitation stabilize and we begin to lap the opening of Epic Universe.”
