Old Hollywood is finally doing what Netflix Inc. has been doing for over a decade: making money from streaming.

Walt Disney Co. saw streaming profits grow in the latest quarter, underscoring progress on the company’s effort to transform direct-to-consumer distribution, recently a loss-making endeavor, into a financial engine.

Disney stock rallied after its streaming unit, home to Disney+, Hulu and ESPN+, swung to a profit after years of heavy investment. Shares were recently about 6% higher, putting Disney on pace for its largest one-day gain since February,