"Disney Shares Plunge Despite Strong Earnings on Fears of Losing Tourists Due to Trump"

Revenue and EPS Exceed Market Expectations
Stock Drops Nearly 8% Intraday, Closes Down 7.40%
Number of Foreign Visitors Continues to Decline
Neighboring Countries Canada and Mexico Also Turning Away

The Walt Disney Company in the United States reported results that exceeded market expectations, yet its stock price fell by 7%. Concerns that the strong anti-immigration policies of the Donald Trump administration could lead to a decrease in the number of tourists had an impact.

On February 2 (local time), Disney announced its financial results for the first quarter of the 2026 fiscal year. According to the announcement, total revenue reached $25.981 billion, up 5% year-on-year. Net profit was $2.402 billion, a decrease of 6%. Adjusted earnings per share (EPS) were $1.63, down 7% from the previous year. Both revenue and EPS exceeded Wall Street’s average estimates.

Walt Disney Company headquarters located in Burbank, California, USA. Walt Disney.

By segment, the entertainment division—which includes film, broadcasting, and streaming businesses—posted revenue of $11.6 billion, a 7% increase year-on-year. This was thanks to the box office success of films such as "Zootopia 2" and "Avatar: The Fire and Ashes." The experiences division, which includes theme park operations such as Disneyland, also saw revenue rise by 6% to $10.06 billion, with operating profit up 6% to $3.309 billion. The streaming service division’s revenue rose 11% year-on-year to $5.35 billion, and operating profit surged by 72%.

Despite the strong results, the stock price plunged. Shortly after the New York Stock Exchange opened, Disney’s share price fell by nearly 8% at one point, and failed to recover, closing down 7.40%. This was the largest drop since November 2024.

Disney’s gloomy outlook played a major role. The company stated that it may face difficulties attracting overseas tourists in the second quarter of the fiscal year. In fact, Disney explained that this quarter’s experience division revenue managed to offset the decline in international visitors by attracting more domestic consumers.

Foreign media outlets agreed that the Trump administration’s anti-immigration policies appear to have had an effect. In a recent World Travel & Tourism Council (WTTC) survey of international tourists, one-third of respondents said they would be less likely to visit the United States if the Trump administration implemented "social networking service (SNS) checks" during visa issuance. According to WTTC, the number of foreign tourists visiting the United States last year decreased by 6% compared to the previous year.

The Independent pointed out that "even Canadians and Mexicans, who make up the majority of U.S. tourists, are turning away due to President Trump’s belligerent remarks."

This content was produced with the assistance of AI translation services.