Disney (DIS) on Thursday reported fiscal fourth quarter earnings per share and revenue that topped Wall Street estimates, as its direct-to-consumer business built on recent momentum and swung to a profit.

The media and experiences giant reported Q4 adjusted earnings of $1.14 per share, above the $1.10 expected by analysts polled by Bloomberg. It was also higher than the $0.82 Disney reported in the prior-year period.

Revenue came in at $22.57 billion, outstripping consensus expectations for $22.47 billion as well as the $21.24 billion reported in the year-ago period.

The stock jumped almost 10% in premarket trading following the results.

Disney's direct-to-consumer (DTC) streaming business — which includes Disney+, Hulu, and ESPN+ — posted operating income of $321 million for the three months ending Sept. 28. That compares to a loss of $387 million in the prior-year period.

Analysts polled by Bloomberg had expected DTC operating income to come in around $203 million after the company reached its first quarter of streaming profitability in its Q3 results.

Achieving consistent profits in streaming is critical for Disney and other media giants amid a growing shift by consumers to DTC services from traditional pay-TV packages.

In mid-October, the company hiked the price of its various subscription plans, highlighting a trend that has gained traction over the past year. With such moves, media companies are attempting to boost margins on direct-to-consumer (DTC) offerings in the face of rising declines in linear television.

Disney said Thursday that it expects DTC operating income of approximately $875 million in fiscal 2025.

The entertainment giant's results come as it searches for a successor to current CEO Bob Iger to help it navigate a changing industry. A recent report from the Wall Street Journal said the pool of candidates is expanding as the executive is set to leave Disney for a second time by the end of 2026.

Last month, Disney said it plans to announce its next CEO in early 2026, with current Disney board member and former Morgan Stanley (MS) CEO James Gorman leading the charge. He will serve as the company's new chairman of the board, effective Jan. 2, 2025.

Among the investor concerns Iger's successor will inherit is a potential slowdown in Disney's theme parks business.

Revenue for the parks division came in slightly ahead of estimates, rising 1% year over year to reach $8.24 billion.

Operating income, however, fell short of expectations of $2.31 billion to hit $1.66 billion in the quarter, a 6% drop compared to the prior year.