Warner Bros. Discovery (NASDAQ:WBD) Posts Quarterly Earnings Results, Beats Estimates By $0.20 EPS

Warner Bros. Discovery (NASDAQ:WBD) posted its quarterly earnings data on Thursday. The company reported $0.06 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.20, FiscalAI reports. Warner Bros. Discovery had a negative return on equity of 4.77% and a negative net margin of 4.67%.The firm had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $9.25 billion. During the same period in the previous year, the firm earned $0.63 EPS. The business’s quarterly revenue was down 11.2% on a year-over-year basis.

Here are the key takeaways from Warner Bros. Discovery’s conference call:

• Positive Sentiment: Streaming surpassed $3 billion in quarterly revenue, with subscriber-related revenue up 10% ex-FX and adjusted EBITDA rising more than 60% year over year to $512 million. Management expects continued momentum from a strong 2026–2027 HBO Max content pipeline.
• Positive Sentiment: Management reported healthy demand and high margins for licensing Warner Bros.’ extensive content library, while HBO Max bundles are improving both subscriber acquisition and churn. The company expects 2026 to deliver its best retention performance yet.
• Negative Sentiment: Linear advertising remained under pressure, with revenue down nearly 30%, partly due to unfavorable NBA comparisons and the World Cup. International markets also showed signs of consumer weakness and limited visibility into the remainder of the year.
• Neutral Sentiment: The studio business had a difficult second quarter against an exceptionally strong 2025 comparison that included major licensing deals, “Sinners,” and “Minecraft.” Executives nevertheless reaffirmed the long-term goal of more than $3 billion in studio adjusted EBITDA, supported by library licensing, television production, consumer products, games, and experiences.
• Positive Sentiment: Warner Bros. plans to increase theatrical output from 14 films in 2026 to 19 in 2027, with major releases including “Lord of the Rings,” “Batman,” “Superman,” and “Minecraft 2.” Management also highlighted a robust DC and HBO slate, including “Harry Potter,” “The Last of Us,” “The Pitt,” and “White Lotus.”

Warner Bros. Discovery Trading Up 1.4%

WBD stock traded up $0.38 during mid-day trading on Friday, reaching $26.78. 12,230,365 shares of the stock traded hands, compared to its average volume of 23,264,479. Warner Bros. Discovery has a one year low of $10.76 and a one year high of $30.00. The stock has a market capitalization of $67.14 billion, a PE ratio of -38.26 and a beta of 1.55. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.73 and a current ratio of 0.73. The business has a 50-day moving average price of $26.49 and a two-hundred day moving average price of $27.21.

Hedge Funds Weigh In On Warner Bros. Discovery

Hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC grew its stake in Warner Bros. Discovery by 304.9% in the fourth quarter. Brighton Jones LLC now owns 68,950 shares of the company’s stock valued at $729,000 after purchasing an additional 51,920 shares during the last quarter. DV Equities LLC purchased a new position in Warner Bros. Discovery during the 4th quarter worth $99,000. Atlas Capital Advisors Inc. purchased a new position in Warner Bros. Discovery during the 4th quarter worth $93,000. Itau Unibanco Holding S.A. increased its position in Warner Bros. Discovery by 54.5% during the 4th quarter. Itau Unibanco Holding S.A. now owns 2,095 shares of the company’s stock valued at $60,000 after buying an additional 739 shares in the last quarter. Finally, Quarry LP raised its stake in Warner Bros. Discovery by 28.6% in the third quarter. Quarry LP now owns 4,290 shares of the company’s stock valued at $84,000 after buying an additional 954 shares during the last quarter. 59.95% of the stock is currently owned by institutional investors.

Warner Bros. Discovery News Summary

Here are the key news stories impacting Warner Bros. Discovery this week:

• Positive Sentiment: The U.K. Competition and Markets Authority approved Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, removing a significant regulatory hurdle and improving the deal’s prospects. However, the transaction still faces a lawsuit from 12 U.S. state attorneys general. Paramount-Warner Bros. Discovery merger gets boost after UK approval
• Positive Sentiment: WBD reported second-quarter adjusted earnings of $0.06 per share, well above analysts’ consensus estimate for a loss of roughly $0.13 to $0.14 per share. Warner Bros. Discovery Q2 Earnings Surpass Estimates
• Positive Sentiment: Streaming revenue rose 10%, led by HBO Max, highlighting continued growth in the company’s direct-to-consumer business ahead of the proposed Paramount combination. Warner Bros. Discovery reports 10% jump in streaming revenue
• Neutral Sentiment: Lionsgate CEO Jon Feltheimer endorsed the Paramount-WBD merger, saying prolonged uncertainty is harmful to the entertainment industry. The comments offer industry support but do not resolve the transaction’s legal obstacles. Paramount-WBD Deal Endorsed By Lionsgate CEO
• Negative Sentiment: Second-quarter revenue fell 11.2% year over year to $8.72 billion, below the approximately $9.25 billion consensus estimate. Soft advertising, weaker box-office results and the absence of NBA programming weighed on results. Warner Bros Discovery revenue disappoints
• Negative Sentiment: The Paramount deal remains vulnerable to U.S. antitrust litigation, while merger uncertainty is complicating strategic planning and creating challenges for employees. Paramount’s Warner Concessions Give Credibility to U.S. Lawsuit

Wall Street Analyst Weigh In

A number of equities research analysts have commented on WBD shares. Seaport Research Partners cut Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a report on Monday, July 27th. Guggenheim reissued a “neutral” rating on shares of Warner Bros. Discovery in a report on Thursday, May 7th. Huber Research raised Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a report on Monday, June 1st. KeyCorp reaffirmed an “overweight” rating on shares of Warner Bros. Discovery in a report on Friday, April 24th. Finally, Zacks Research cut shares of Warner Bros. Discovery from a “hold” rating to a “strong sell” rating in a research report on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, twelve have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $27.04.

Warner Bros. Discovery Company Profile

Warner Bros. Discovery (NASDAQ: WBD) is a global media and entertainment company formed when WarnerMedia and Discovery, Inc combined their businesses in 2022. Headquartered in New York City, the company assembles a broad portfolio of film and television production, linear and cable networks, streaming services and consumer distribution operations. Its assets span well-known studio brands, premium scripted and unscripted programming, news and factual entertainment, and licensed franchise properties.

The company’s core activities include film and television production and distribution through units such as Warner Bros.