Walt Disney (NYSE:DIS) just dropped a plot twist investors have been waiting for. The House of Mouse beat Wall Street expectations in its fiscal Q4, with adjusted earnings hitting $1.14 per share on $22.6 billion in revenue. That's not allits streaming division, home to Disney+ and Hulu, posted a $253 million profit, up from a $420 million loss last year. Combine that with ESPN+, and the segment brought in $321 million. The turnaround in streaming is huge, considering it was a money pit just a year ago. Oh, and the stock? It jumped nearly 10% in premarket trading. Disney's not just turning heads; it's turning profits.

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The hits kept coming at the box office, with Inside Out 2 and Deadpool & Wolverine breaking records and driving $316 million in profits for Disney's Content Sales & Licensing segment. Despite some hurdles in international parks and declining profits from traditional TV, Disney is playing the long game. CEO Bob Iger has outlined a confident 2025, targeting high single-digit earnings growth and a whopping $875 million profit boost in the streaming unit. Looking further, Disney's forecasting double-digit growth in adjusted earnings for 2026 and 2027. Talk about a sequel investors will want to stick around for.

Bob Iger's leadership is the magic wand behind this transformation. Since his return in late 2022, he's slashed costs, revived the film and TV units, and set the stage for long-term growth. With $3 billion in stock buybacks on deck for next year, Disney is making moves that scream, We're back. The company's evolution from struggling legacy giant to modern streaming powerhouse is proof that quality content and sharp strategy win in the end. For investors, Disney's comeback isn't just a feel-good story; it's a reason to hold tight and enjoy the ride.

This article first appeared on GuruFocus.