Media giant Walt Disney (DIS:NYSE) showed investors on 14 November it was capable of a turnaround delivering record fourth-quarter streaming and box office numbers.

Disney Pixar’s Inside Out 2 became the highest-grossing animated movie of all time this summer, surpassing Frozen II at the box office.

The company ended the quarter with more than 120 million Disney+ Core subscribers, 4.4 million more than the previous quarter, and a total of 174 million Disney+ Core and Hulu subscriptions all told.

Matthew Dolgin, equity analyst at US data firm Morningstar, said: ‘Disney seems to have turned a corner toward robust streaming profitability while maintaining healthy growth.

‘Total direct-to-consumer operating income hit $321 million in the fourth quarter after reaching profitability for the first-time last quarter, with $47 million in operating income.’

Disney is anticipating double-digit growth in operating income for its entertainment business for fiscal 2025 and double-digit adjusted EPS (earnings per share) growth in fiscal 2026 and fiscal 2027.

Shares are already up 25% year-to-date, which may signal the worst is already over.

With CEO Bob Iger due to leave in 2026 after his contract ends, investors will hope he has done enough to pave the way for his successor.

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