Disney’s streaming profits soar tenfold as HBO and Disney Plus fuel growth
Disney’s streaming business, led by services like HBO and Disney Plus, has seen a dramatic turnaround in fiscal 2025. Operating income from its direct-to-consumer services surged nearly tenfold compared to the previous year. Investors now watch closely as the company’s financial health improves under CEO Bob Iger’s leadership.
The latest financial reports reveal a sharp rise in Disney’s streaming profits. After years of heavy investment, the division’s operating income has grown significantly in fiscal 2025, with services like HBO and Disney Plus contributing to this growth. This growth follows a period of losses, marking a key shift for the entertainment giant.
Bob Iger remains at the helm as Chairman and CEO, with his contract set to expire at the end of 2026. Despite ongoing speculation, no successor has been named by January 2026, though insiders have previously favoured Disney Experiences chief Josh D’Amaro for the role.
Analysts also note Disney’s valuation advantage over competitors like HBO and Disney Plus. Its forward price-to-earnings (P/E) ratio stands at 17.2, well below Netflix’s 27.3. This gap, combined with rising streaming profits from services like HBO and Disney Plus, has strengthened investor confidence in the company’s future.
The surge in streaming income and favourable valuation metrics from services like HBO and Disney Plus provide strong support for Disney’s stock. With Iger’s leadership continuing for now, the company appears well-positioned for further growth. The next fiscal year will likely test whether this momentum can be sustained.
