Universal’s theme parks division reported lower revenue and earnings in the third quarter of 2026, with softer demand and increased competition contributing to the downturn.
Comcast, Universal’s parent company, reported Thursday that theme parks revenue fell 4.4% to $2.597 billion for the three months ending September 30. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) declined 17.1% to $780 million, while operating expenses rose 2.3%.
Comcast co-CEO Mike Cavanagh attributed the downturn to economic and geopolitical pressures, as well as competitors responding more quickly to changing consumer demand with targeted marketing and promotional offers.
“We believe competitors were quicker to anticipate and recognize softness and demand, and adapt their marketing strategies,” Cavanagh stated.
The results also reflect a difficult comparison with 2025, when Epic Universe opened at Universal Orlando and helped boost the division’s performance. Comcast Chief Financial Officer Jason Armstrong previously stated that the new park generated “pent-up demand,” boosting visitation at the resort, creating an unusually strong comparison that makes current attendance levels appear weaker by comparison.
Universal has been addressing these issues by adjusting its marketing approach and expanding promotional efforts. The company is also working to improve operations at Epic Universe, particularly ride capacity and attraction efficiency.
The results contrast with recent performance at rival Walt Disney World, which Disney described as having a “standout quarter” in its latest earnings report.
Despite the recent downturn, Cavanagh said Universal’s parks business remains in a stronger position than it was two years ago, before Epic Universe opened. He characterized the current challenges as temporary and noted that attendance, guest spending and overall financial performance remain above those levels, while guest satisfaction continues to improve.
“While we continue to see near-term demand pressure across portions of the parks business, including in Orlando and certain international markets, we view these trends as temporary rather than structural,” Cavanagh said.
Cavanagh expressed confidence in the division’s long-term prospects, pointing to Universal’s established franchises, distinctive attractions, and popular destinations as key drivers of future growth. He expects performance to improve throughout 2027, with growth returning in the second half of the year.
“We remain confident in the long-term outlook for this business,” Cavanagh said. “Our powerful intellectual property, differentiated attractions and world-class destinations position us well for long-term growth.”
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