Everything is great at the Magic Kingdom, and so are all of Disney’s other theme parks.

The company’s experiences segment, which includes parks, cruises, hotels and consumer products, posted record revenue first fiscal quarterbreaking through $10 billion for the first time in Disney’s more than 100-year history. It also reported operating income of $3.3 billion, up 6% from the same period last year.

This area has seen rapid growth in the wake of the COVID-19 pandemic. It often accounts for the largest share of a company’s profits. For the period ended December 27, the experience business accounted for 38% of Disney’s total revenue, but its operating income was as high as 71%.

Company executives expect these good times to continue, predicting high-single-digit operating income growth for the segment in fiscal 2026.

“When you look at the footprint of the business today, it has never been broader and more diverse,” Disney CEO Bob Iger said on Monday’s earnings call. “The projects we have underway will make that even more so.”

The strong park performance comes amid a CEO succession race, with Disney Experience Chairman Josh D’Amaro likely to succeed Iger. Disney’s board of directors will meet this week and is expected to vote on the next CEO, according to insiders who spoke on condition of anonymity.

Industry insiders and Disney sources expect D’Amaro to be named Iger’s successor, though the final decision rests with Disney’s board and won’t be final until directors vote.

“The board of directors has not yet selected the next CEO of The Walt Disney Company and we will announce that decision once it is made,” a Disney spokesperson said in a statement, declining to comment on the timing of the next board meeting.

Much of the Experiences segment’s success comes from significant investments in expanding the Disney theme park footprint, renovating existing park rides and themed areas, adding cruise ships to the fleet, and growing Disney theme parks. numbers game Be present. Disney’s library of franchises and iconic intellectual property drives new developments in this space.

Disney has already withdrawn Content mix. Disneyland opened more than 70 years ago and offers rides themed to “Alice in Wonderland,” “The Adventures of Ichabod and Mr. Toad,” “Peter Pan” and “Snow White and the Seven Dwarfs.”

While these classic attractions remain, the company’s recent growth has been fueled by Iger’s strategic acquisitions of four major film studios – Pixar in 2006, Marvel in 2009, Lucasfilm in 2012 and 20th Century Fox in 2019. This brought the Mouse House a coveted franchise, including Star Wars, Toy Story, Avengers and Avatar.

“When we add intellectual property to our stable … we acquire intellectual property that has real value in terms of parks and resorts and allows us to rely on more capital expenditures because we feel confident about improving returns,” Egger said.

Owning the film and television rights to these properties gives the company greater control over production and how it is translated into rides, experiences and merchandise.

This work will continue as part of the 10-year plan, $60 billion investment effort Launching in 2023.

“Each of our theme parks are undergoing expansion projects,” Egger said.

He touted the upcoming opening of Frozen World at Disneyland Paris, as well as the launch of Disney Adventure, a new cruise ship berthed in Asia.

Also coming soon is a new Villain’s Land coming to the Magic Kingdom, as well as the reimagining of Rivers of America, Tom Sawyer’s Island and Liberty Square Riverboat into an area called Piston Peak – the second “Cars” themed land modeled after an American nature park. Hollywood Studios will debut a new Monsters, Inc. The Muppets are taking over the Rock ‘n’ Roller Coaster attraction. Animal Kingdom will host the “Encanto” ride and a new “Indiana Jones” ride.

Disneyland’s Marvel-themed area “Avengers” will add two new attractions, allowing visitors to take a look at the Land of the Dead in “Coco” and Disney will create a new “Avatar” area based on scenes from “Avatar: Fire and Ash.”

Internationally, Disney has reached an agreement to launch new park and a vacation to Yas Island in the United Arab Emirates.

As overall U.S. tourism grows, many U.S. theme park destinations are responding to this trend A decrease of 6% in 2025. Industry analysts point to rising travel costs and fees, ongoing trade frictions and geopolitical unrest leading to lower demand for travel within the United States.

Nonetheless, domestic theme park and experience revenue rose 7% in the quarter to $6.91 billion.

New products at Disney’s international parks, the launch of cruise ships serving Asia and a new Abu Dhabi park are all ways for Disney to expand into foreign markets and attract consumers who don’t travel long distances to the company’s domestic destinations.

—CNBC’s Julia Boorstin and Alex Sherman contributed to this report.