Disney reported its fiscal fourth-quarter earnings on Thursday, surpassing analyst expectations with strong growth driven by its streaming business. The company’s entertainment segment, bolstered by a blockbuster summer at the box office and solid investments in its theme parks, saw impressive gains despite challenges across the media industry. Under CEO Bob Iger’s leadership, Disney has been undergoing restructuring to ensure a smooth transition to his successor in 2026.

Disney executives highlighted the company’s progress, expressing confidence in its long-term growth. They provided a positive outlook, forecasting high single-digit adjusted earnings growth for fiscal 2025, followed by double-digit earnings growth in fiscal 2026 and 2027. CFO Hugh Johnston attributed the strong performance to key initiatives, including a focus on creativity and improved profitability. In early trading, Disney’s stock jumped more than 9%.

Here’s how Disney performed compared to Wall Street’s expectations:

– Earnings per share: $1.14 adjusted vs. $1.10 expected
– Revenue: $22.57 billion vs. $22.45 billion expected

Disney’s net income rose to $460 million, or 25 cents per share, compared to $264 million, or 14 cents per share, in the same quarter last year. Adjusted for one-time items, Disney reported earnings per share of $1.14. The company’s revenue increased by 6% to $22.57 billion, while operating income for its segments rose by 23% to $3.66 billion.

The entertainment segment, which includes TV networks, streaming services, and films, saw a 14% year-over-year revenue increase, totaling $10.83 billion, thanks in part to a strong summer at the box office. Disney Pixar’s “Inside Out 2” became the highest-grossing animated film of all time, and the “Deadpool & Wolverine” film set a new record for the highest-grossing R-rated film. The entertainment segment reported nearly $1.1 billion in profit, and Disney became the first film studio to cross $4 billion globally in 2024. The company is also optimistic about upcoming releases like “Moana 2” and “Mufasa: The Lion King.”

Disney’s streaming business, which includes Disney+, Hulu, and ESPN+, reported operating income of $321 million for the September period, a dramatic improvement from a $387 million loss in the same period the previous year. Executives emphasized that streaming will continue to be a key growth area for the company. Disney+ Core subscribers (excluding Disney+ Hotstar in India and nearby regions) grew by 4.4 million, reaching 122.7 million. Hulu’s subscriber base grew 2% to 52 million.

While average revenue per user for U.S. Disney+ customers slightly decreased to $7.70, executives noted that more than half of new U.S. subscribers chose the lower-priced, ad-supported tier, which is a positive indicator for future growth. Streaming advertising revenue saw a 14% increase, and Disney expects it to drive future revenue growth in the streaming business.

However, Disney anticipates a modest decline in Disney+ Core subscribers in the first quarter of fiscal 2025 due to higher prices and the end of a recent promotional offer. Despite this, full-year profit in the entertainment streaming business, excluding ESPN+, is expected to increase by about $875 million year-over-year and continue growing in the following years.

Meanwhile, the company’s traditional TV networks business saw a 6% revenue decline to $2.46 billion, while profit from the segment dropped 38% to $498 million. Disney’s sports segment, primarily made up of ESPN, remained flat, though ESPN’s profit fell by 6% due to higher programming costs.

Disney executives remain optimistic about the future, even as some of its business areas face challenges. The company’s theme parks segment, while experiencing a slowdown in the U.S. following the post-COVID surge, is expected to see growth with new additions to its cruise line and parks.