The news: In addition to its streaming success, Disney posted strong quarterly results for its Experiences division, led by rising income from US theme parks, cruises, and vacation offerings. Higher attendance, increased guest spending, and new offerings like the Disney Treasure cruise ship drove growth.

At the same time, Disney revealed a major international expansion: a theme park planned for Abu Dhabi, its first in the Middle East. According to CEO Bob Iger, the company will oversee creative development, while UAE-based developer Miral will handle construction and operations. The Abu Dhabi park will operate under a royalty-based licensing agreement, with zero capital investment on Disney’s part, as noted during the earnings call.

By the numbers:

• Domestic Parks & Experiences income climbed 13% YoY to $1.8 billion in Disney’s fiscal Q2 ended March 29.
• Total segment revenues for Experiences rose 6%, supported by increased cruise passenger days and hotel occupancy.
• Disney spent over $4.3 billion on park-related capital expenditures in the first half of the fiscal year—a 69% increase from the prior year.
• Internationally, however, the picture was more mixed. Operating income at overseas parks declined, with Shanghai Disney Resort and Hong Kong Disneyland both underperforming amid weaker consumer demand and higher costs.

Why it matters: This quarter shows that Disney’s physical experiences remain a key source of profit, especially in the US.

• The new park in Abu Dhabi represents a major global play for Disney, especially as development of the Middle East’s tourism infrastructure accelerates. By pursuing a capital-light model, Disney is expanding its global footprint without overextending financially during a volatile period.
• Still, results from its Asia-based resorts highlight real macroeconomic pressure. Slower-than-expected recoveries in China and ongoing regional headwinds—like currency fluctuations and elevated labor costs—are clearly weighing on profitability abroad.

Our take: Disney’s domestic parks continue to anchor the company’s earnings, but growth will depend on its ability to navigate inflation and regional volatility.

• Amusement parks rank near the top of activities for various cohorts, including new parents (see chart)—but what happens if economic issues force consumers to tighten their wallets?
• The Abu Dhabi park could be a smart move, exposing Disney to high-spending international audiences while offloading financial risk.
• The contrasting performance between US and international destinations is a reminder that even Disney’s most established business isn’t immune to global economic strain. As investment ramps up, execution and timing will be critical to keeping the magic intact.