Back to top

Image: Bigstock

Is Disney's Theme Park Push Laying the Foundation for Future Growth?

Read MoreHide Full Article

Key Takeaways

  • Disney expects its Experiences segment operating income to rise about 8% YoY in FY25.
  • New attractions like "Soarin' Across America" and "Zootopia: Better Zoogether" headline global park updates.
  • Projects such as "World of Frozen" and "Avatar" areas reflect Disney's focus on brand-driven park expansion.

Disney’s (DIS - Free Report) global theme park expansion is shaping its Experiences segment into a key growth engine for the company’s long-term success. The strategy focuses on scaling its global footprint, introducing new attractions and enhancing guest engagement through immersive storytelling and technology. The company expects Experiences' operating income to grow around 8% year over year in fiscal 2025, reflecting strong demand and continued expansion across its parks and resorts.

Disney’s expansion strategy highlights innovation and international growth. The company plans to launch “Soarin’ Across America” in 2026 to celebrate America’s 250th anniversary, introduce new shows at EPCOT and Shanghai Disneyland, and host the first HBCU Hoops Invitational in December 2025. Through its partnership with Miral for a new park  in Abu Dhabi and the “Zootopia: Better Zoogether” 4D experience, Disney continues to strengthen its Experiences portfolio worldwide.

Upcoming projects include the “World of Frozen” land opening in Paris in 2026, “Avatar” and “Villains”-themed areas at Magic Kingdom, and a new “Monsters, Inc.”-themed land at Disney’s Hollywood Studios featuring a suspended coaster. These additions show Disney’s commitment to combining popular franchises with new attractions to boost guest spending and strengthen brand loyalty.

Per the Zacks model, the Experience segment’s revenues are projected to rise 5% year over year to $35.9 billion in fiscal 2025, with operating income projected to reach $10.2 billion, reflecting an 8% annual increase. The operating margin is forecasted to expand by 70 basis points to 27.9%, reflecting continued strength and profitability in Disney’s Parks and Experiences business. These projections highlight Disney’s commitment to sustained growth, operational efficiency and long-term shareholder value in fiscal 2025.

Theme Park Rivals Challenge Disney’s Dominance

Comcast’s (CMCSA - Free Report) Universal Parks & Resorts posted an 18.9% year-over-year revenue jump to $2.35 billion in the second quarter of 2025, driven by the blockbuster debut of Epic Universe in Orlando. Powered by strong per capita spending and hit franchises like Harry Potter and Super Mario, Comcast’s Universal is accelerating its global expansion with new ventures, including the Universal Kids Resort in Texas, Horror Unleashed in Las Vegas, a Chicago horror attraction and a London park slated for 2031, escalating its rivalry with Disney’s theme park empire.

Six Flags Entertainment Corporation (FUN - Free Report) reported strong second-quarter 2025 results, with 5.6 million more visits and in-park per capita spending of $62.46, underscoring its appeal as a value-driven, thrill-ride destination. Six Flags’ wide regional footprint and affordable pricing continue to attract local audiences seeking high-intensity experiences. While lacking Disney’s resort-scale integration, Six Flags leverages operational efficiency, strong promotions and a loyal customer base to maintain its edge in the competitive amusement-park market.

DIS’ Share Price Performance, Valuation & Estimates

Disney shares have returned 0.6% in the year-to-date period, underperforming both the Zacks Consumer Discretionary sector’s 5.9% growth and the Zacks Media Conglomerates industry’s gain of 2.3%.

DIS’ YTD Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

From a valuation standpoint, DIS stock is currently trading at a forward 12-month price/earnings ratio of 17.17X compared with the industry’s 19.46X. DIS has a Value Score of B.

DIS’ Valuation

Zacks Investment Research
Image Source: Zacks Investment Research

According to the Zacks Consensus Estimate, Disney’s earnings are projected at $5.87 per share for fiscal 2025 and $6.48 for fiscal 2026. Estimates for fiscal 2025 remained unchanged, while fiscal 2026 slipped by a cent over the past 30 days. These figures suggest year-over-year growth of 18.11% in fiscal 2025 and 10.32% in fiscal 2026.

Zacks Investment Research
Image Source: Zacks Investment Research

DIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Comcast Corporation (CMCSA) - free report >>

The Walt Disney Company (DIS) - free report >>

Six Flags Entertainment Corporation (FUN) - free report >>

Published in