Revisiting Disney: Earnings delivered - but the narrative did not. What could change that?

Bernstein's note on Walt Disney Co (DIS.US). A year ago the firm argued Disney appeals to value investors with duration—not a re-rating story, but Disney becoming a slower-growth yet steady compounder. Disney has broadly delivered: double-digit EPS growth in FY26 and FY27, streaming (DTC) margins reaching double-digits, and a resilient Experiences business, with FY26 objectives on track. Yet the stock remains range-bound, underperforming the S&P 500 by nearly 25% over the past twelve months, with the multiple compressing to roughly 14x FY27E EPS. Bernstein sees a possible inflection in the narrative: FY26 streaming-margin targets within reach, a new CEO (Josh D'Amaro) in place, cost actions (~1,000 roles eliminated in April plus additional corporate/HR/tech roles) creating capacity for reinvestment, and accelerating content spending growth in FY27 (an estimated $1.5B+ step-up). DTC remains the key growth engine, but sustaining growth requires more content fuel;