Disney World Bookings Pacing Up Strongly as Epic Universe Headwinds Begin to Ease

Analysts on Disney’s Q2 fiscal 2026 earnings name had loads of questions in regards to the Experiences section — and each CFO Hugh Johnston and CEO Josh D’Amaro had detailed solutions. Here is what was mentioned.

International Visitation and Epic Universe: The Headwinds Explained

The first query went straight to one thing Disney park watchers have been monitoring intently: the influence of Epic Universe and softer worldwide visitation on home park attendance.

Johnston responded straight, confirming each headwinds had an influence in Q2 however advised they’re anticipated 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 mentioned.

Domestic park attendance was down 1% in Q2. Johnston supplied vital context: strip out the worldwide visitation influence alone, and home park attendance would even have grown.

He additionally pointed to pre-opening prices for World of Frozen and the Disney Adventure as a drag on working earnings flow-through within the quarter — prices that will not repeat within the second half of the 12 months.

“While Q2 bore the full impact of those headwinds, our revenue growth for the quarter was 7% in Experiences,” Johnston mentioned.

He additionally broadened the lens past home attendance, pointing to the corporate’s rising world footprint as essentially the most significant measure of the enterprise.

“Global guests — which aggregates domestic and international parks attendance along with passenger cruise days — grew more than 2% in Q2,” Johnston mentioned. “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 facet, Johnston famous that Disney has plans to broaden its fleet from eight ships at present to 13 by 2031.

Gas Prices, Macro Uncertainty and Booking Trends

A query from Wells Fargo’s Stephen Hall requested whether or not elevated gasoline costs had modified client habits at home or worldwide parks, and whether or not macro pressures may have an effect on Disney’s EPS steerage.

Johnston mentioned there had been no seen influence up to now.

“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 mentioned.

He then supplied two concrete information factors. Disney World bookings are at present pacing up strongly. And regardless of a 40% enhance in cruise capability, e book occupancy stays according to the prior 12 months — a notable determine given how a lot new capability has been added.

Johnston was cautious not to dismiss macro threat solely.

“We’re mindful of the macro uncertainty consumers are facing, and we’re not immune to the impacts,” he mentioned, including {that a} important additional rise in gasoline costs may ultimately shift client habits. I’ve famous that every enterprise has levers in place to offset macro pressures if wanted.

On steerage, Johnston held the road: 12% adjusted EPS development for fiscal 2026 and double-digit development for fiscal 2027, each excluding the influence of the 53rd week.

D’Amaro on Capital Investment: “More Projects Underway Than at Any Time in Our History”

Another Experiences query of the decision went to D’Amaro — an replace on capital expenditure plans, what he’s most enthusiastic about, and when investments will drive an attendance inflection on the parks.

He has confirmed that whereas official opening dates haven’t been introduced for a number of upcoming main points of interest, the pipeline is the most important it has ever been.

“We have more projects underway around the globe than at any time in our history,” D’Amaro mentioned. “We’re being very ambitious and very aggressive on this front.”

On the specifics of the place capital is being deployed in fiscal 2026, D’Amaro pointed to the brand new cruise ship and main expansions at Walt Disney World in Orlando, Disneyland in Anaheim, and Shanghai Disney Resort.

Looking additional out, I’ve framed the funding strategy in generational phrases.

“When we think about the next decade, the majority of our CapEx is earmarked for investments that are expanding our capacity,” he mentioned. “Each one of these investments is individually justified and designed to entertain guests for literally generations to come.”

He additionally highlighted two capital-light growth initiatives — a brand new cruise ship with Oriental Land Company in Japan and a brand new theme park in Abu Dhabi with native companion Miral — as examples of how Disney is rising its world footprint with out carrying the complete capital burden itself.

Q3 Attendance: Improvement Expected

Johnston additionally talked about near-term attendance traits.

“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 mentioned. “This will happen as headwinds related to international visitation stabilize and we begin to lap the opening of Epic Universe.”