Key Highlights Q2 revenue reached $8.72 billion, falling short of $9.18-$9.29 billion consensus and declining 11.2% from the prior year Earnings per share of $0.06 exceeded expectations of a
In its second quarter 2026 results, Warner Bros. Discovery delivered revenue of $8.72 billion, coming in below analyst projections of $9.18-$9.29 billion. The top line decreased 11.2% compared to the same period a year earlier.
WARNER BROS. DISCOVERY $WBD Q2’26 EARNINGS HIGHLIGHTS
Revenue: $8.7B (Est. $9.29B)
; -11% YoY
; -90% YoY
; -4% YoY
Segment Net Revenue:
— Wall St Engine (@wallstengine) August 6, 2026
Shares of WBD advanced approximately 1.5-1.9% during trading sessions, even with the revenue underperformance.
Warner Bros. Discovery, Inc., WBD
The bottom-line results painted a more optimistic picture. The media giant delivered GAAP earnings of $0.06 per share, significantly surpassing Wall Street’s projection of a $0.13 per share loss. This unexpected profitability stemmed primarily from a 23% reduction in operational costs, attributed to eliminated NBA rights expenses and reduced content investment.
The film studio segment represented a notable weakness. Revenue plummeted 39% during the period, as theatrical releases “Mortal Kombat II” and “Supergirl” failed to match the performance of previous year’s successful films including “A Minecraft Movie” and “Sinners.”
Warner’s film release schedule is weighted toward the latter portion of the year. High-profile productions such as “Digger” and “Dune: Part Three” are slated for second-half releases, potentially providing a boost to studio performance.
The absence of NBA programming created significant headwinds. Advertising revenue contracted 22% during the quarter, as domestic linear television viewership continued its downward trajectory.
Management also noted that the 2026 FIFA World Cup diverted audience attention and advertising spending across multiple territories throughout June and July.
The CNN-anchored networks unit experienced a 17% revenue decline, although aggressive cost management partially mitigated the impact on profitability. The segment’s operating margin expanded to 2.7%, improving from negative 1.9% in the corresponding quarter of 2025.
Adjusted EBITDA totaled $1.88 billion, marginally below the $1.90 billion consensus estimate, representing a 21.6% margin.
The HBO Max platform maintained solid momentum. Streaming revenue increased 10%, fueled by geographic expansion efforts and compelling original programming like “The Pitt.”
The direct-to-consumer segment continues to be a cornerstone of WBD’s strategic vision moving forward, especially as the anticipated Paramount combination progresses.
The UK’s Competition and Markets Authority granted approval to the $110 billion Warner-Paramount transaction on Thursday, concluding that the combination would not substantially reduce competition within British markets.
Nevertheless, the transaction faces ongoing legal challenges domestically. California alongside 11 additional states are attempting to prevent the merger citing antitrust concerns. Paramount has consented to postpone completion until June 2027, with federal litigation scheduled for March 2027.
Seth Shafer, principal analyst at S&P Global Market Intelligence, observed that the CMA clearance could strengthen Paramount’s position in American legal proceedings, though emphasized that the final determination will hinge on courtroom arguments.
Leadership from both companies conveyed optimism during the earnings conference call regarding successful deal completion.
Analyst forecasts project WBD revenue expansion of 3.8% over the coming twelve months, trailing the industry benchmark.
Free cash flow margin registered at 6.6%, comparable to the equivalent quarter in the previous year. The company’s market capitalization stands at $65.1 billion.
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