Disney’s Theme Parks Turn into Cash Machines While Streaming Stumbles

As Disney+ struggles to keep up with subscriber growth, the company’s parks division is quietly turning into a profit powerhouse, with record-breaking revenue and per capita spending.

Disney’s third-quarter earnings report tells a tale of two businesses: one soaring to new heights and the other stuck in a rut. While the company’s streaming arm continues to grapple with slowing subscriber growth, its parks division is experiencing a renaissance, with revenue up 10% year-over-year and per capita spending hitting record highs. The Magic Kingdom may have found its mojo again, but will it be enough to offset the challenges facing Disney+?

Parks and Experiences: The Secret Sauce

Disney’s parks division has long been the company’s crown jewel, but the third quarter of 2026 saw it shine brighter than ever. Revenue surged to $9.97 billion, up 10% from the same period last year, driven by strong attendance and increased guest spending. Per capita spending at U.S. parks rose 4%, a testament to Disney’s ability to extract more dollars from its loyal visitors. Even as macroeconomic pressures weigh on consumers, Disney’s parks have proven remarkably resilient.

The company’s domestic parks, particularly Walt Disney World in Orlando, Florida, were standout performers. Attendance jumped 3%, bolstered by summer promotions and new attractions that kept guests coming back for more. Meanwhile, Disney’s cruise line saw a 50% increase in stateroom capacity thanks to the addition of two new ships, the Disney Destiny and Disney Adventure, which helped drive a 17% surge in resorts and vacations revenue [1].

But not all parks are created equal. While Disneyland Paris benefited from the opening of its World of Frozen attraction, the company’s Asia parks continue to struggle with softer attendance, a trend that’s expected to persist into the fourth quarter [2].

Streaming’s Growing Pains

On the flip side, Disney’s streaming business is facing headwinds. Revenue for the company’s entertainment streaming unit, which includes Disney+ and Hulu, grew 11% year-over-year to $5.53 billion, but the segment’s operating margin remained razor-thin at 13%. While price hikes and increased advertising revenue helped boost the top line, subscriber growth has slowed significantly, prompting Disney to stop reporting quarterly streaming numbers altogether [3].

The company’s linear TV business isn’t faring much better. Revenue for the sports segment, which includes ESPN, rose 4% to $4.5 billion, but operating income fell 17% due to rising content costs and a carriage dispute with a major distributor. ESPN’s direct-to-consumer streaming service, launched nearly a year ago, has yet to make a significant impact on the bottom line [4].

Layoffs and Cost-Cutting

Amid these challenges, Disney is tightening its belt. The company announced plans to lay off several thousand employees as part of a broader cost-cutting initiative. Some managers have been asked to reduce expenses by up to 20%, a move that underscores the company’s focus on improving profitability [5].

Disney is also streamlining its operations by exiting non-core assets. In July, the company agreed to sell its 50% stake in A+E Global Media to Hearst Corporation for $1.2 billion, with plans to use the proceeds to fund additional share repurchases [6].

What’s Next for Disney?

Despite the challenges, Disney remains optimistic about its future. The company expects full-year adjusted earnings per share to grow by 12%, excluding the impact of an extra week in the fiscal year. And with parks revenue continuing to soar, Disney may yet find a way to balance its streaming ambitions with its legacy businesses.

But as the company navigates this delicate balancing act, one thing is clear: Disney’s parks are no longer just a sideshow—they’re the main event.