The third quarter of fiscal year 2025 provided Walt Disney with clear evidence that the strategic transformation that CEO Bob Iger has been driving since his return is beginning to bear fruit. Results exceeded expectations on both earnings and free cash flow, with the strongest contributions coming from strong growth in the Experiences segment (which includes parks, resorts and cruises) and significant improvement in streaming services. At the same time, the company is benefiting from the transition to a stable growth phase after pandemic years and a major restructuring of its media empire, where it is refocusing on the core of its business - creative content, direct-to-consumer relationships and technology-driven monetization of its brands.

Disney $DIS thus confirms that it can combine a traditional entertainment model with a modern digital ecosystem. While the company previously struggled with high losses in streaming, now Disney+ and Hulu are becoming a source of stable revenue and…