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Warner Bros
(NASDAQ:WBD)
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Rating:54Neutral
Price Target:
$27.00
▲(6.80% Upside)
Action:Reiterated
Date:08/07/26
The score reflects mixed fundamentals: persistent TTM net losses and slight revenue decline weigh on financial performance and valuation, while solid positive free cash flow and improved leverage provide support. The latest earnings call adds a meaningful positive tilt due to accelerating streaming profitability and engagement, but technicals are largely neutral and linear advertising/studio timing risks remain key near-term headwinds.
Positive Factors
Streaming profitability turnaround
The streaming business shifted from growth-at-all-costs to profitable scale: record streaming revenue and ~17% adjusted EBITDA margin show recurring subscription economics can generate higher-margin cash. Durable profitability lowers reliance on volatile ad windows and funds content reinvestment over multiple years.
Negative Factors
Persistent net losses and soft revenue
Trailing net losses and declining top line show earnings power remains inconsistent. Continued accounting losses compress return on equity and limit capacity for shareholder returns or aggressive content spending without further margin improvement, making sustained operational recovery essential.
Read all positive and negative factors
Positive Factors
Negative Factors
Streaming profitability turnaround
The streaming business shifted from growth-at-all-costs to profitable scale: record streaming revenue and ~17% adjusted EBITDA margin show recurring subscription economics can generate higher-margin cash. Durable profitability lowers reliance on volatile ad windows and funds content reinvestment over multiple years.
Read all positive factors
Warner Bros Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business areas like film, TV, and streaming, highlighting which segments drive growth and profitability.
Analyzes income from different business areas like film, TV, and streaming, highlighting which segments drive growth and profitability.
Data provided by:
The Fly
The FlyWarner Bros (WBD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.46B
Dividend YieldN/A
Average Volume (3M)22.34M
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth-5.87%
EPS Growth-512.89%
CountryUS
Employees35,500
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-1.27
Shares Outstanding2,510,703,400
10 Day Avg. Volume28,721,208
30 Day Avg. Volume22,337,552
Financial Highlights & Ratios
PEG Ratio-0.94
Price to Book (P/B)1.99
Price to Sales (P/S)1.91
P/FCF Ratio23.10
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$28.95Price Target Upside14.52% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)-1.28
Revenue Forecast (FY)$36.28B
Warner Bros Business Overview & Revenue Model
Company Description
Warner Bros. Discovery, Inc. operates as a prominent global media and entertainment conglomerate. Its operations are structured across three key divisions: Studios, Network, and Direct-to-Consumer (DTC). The Studios segment is responsible for the ...
How the Company Makes Money
WBD primarily makes money through a mix of (1) advertising, (2) subscription fees, and (3) content licensing and distribution, with additional revenue from theatrical and consumer products tied to its franchises.
1) Advertising revenue: WBD sells...
Warner Bros Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture driven by a pronounced streaming turnaround (record streaming revenue, strong adjusted EBITDA improvement and global HBO engagement), significant gains in news and sports viewership, and a clear multi-year plan to grow studio output and diversify revenue streams. Near-term challenges include a steep decline in linear ad revenues (nearly 30%), studio underperformance this quarter vs. a tough prior-year comp, international ad softness in some markets, and timing/lapping effects from related-party items. Management expressed confidence in recovering studio momentum with a ramped 2027 slate and emphasized retention initiatives (bundles) and ancillary business buildouts. Overall, the highlights—particularly streaming profitability and audience strength—outweigh the lowlights, though ad-market and studio timing risks warrant monitoring.Positive Updates
Record Streaming Revenue
Streaming segment delivered more than $3.0 billion in revenue in Q2 (first time ever) with subscriber-related revenue growth accelerating 200 basis points sequentially to 10% ex FX.
Negative Updates
Linear Advertising Revenue Decline
Linear advertising was down nearly 30% (Q2), with the NBA schedule negatively affecting ad revenue; international ad markets were weaker in Q2 versus Q1 and July/August trends are mixed, reducing visibility for ad-driven revenue.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Streaming Revenue
Streaming segment delivered more than $3.0 billion in revenue in Q2 (first time ever) with subscriber-related revenue growth accelerating 200 basis points sequentially to 10% ex FX.
Read all positive updates
Company Guidance
Management guided to continued streaming momentum, noting Streaming revenue topped more than $3.0 billion in Q2 (the first time ever), subscriber‑related revenue growth accelerated 200 basis points sequentially to 10% ex‑FX, and streaming produced $512 million of adjusted EBITDA (+60%+ year‑over‑year) at a nearly 17% adjusted EBITDA margin; they see distribution growth returning to double‑digit (low‑teens ex‑a related‑party deal) and expect even stronger results next quarter, with retention/churn improving (2026 poised to be their best year ever for lower churn) driven by strong global engagement (multiple HBO series averaging ≥25 million global viewers per episode, several >30 million) and awards momentum (WBD 150 Emmy nominations, HBO Max 122 nominations); networks showed sports and news strength (TNT’s highest‑rated national championship basketball game ever, MLB viewership +20% YTD, NHL playoffs +50% viewership, CNN linear +24% viewership and +19% minutes) while Studios reiterated a long‑term target of >$3 billion in adjusted EBITDA and a theatrical slate ramp from 14 films this year to 19 next year, even as linear advertising showed regional softness (Q2 weaker internationally, mixed Q3) and macro/World Cup impacts remain a visibility risk.Warner Bros Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
62
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 36.12B | 37.30B | 39.32B | 41.32B | 33.82B | 12.19B |
| Gross Profit | 15.69B | 10.51B | 16.35B | 16.80B | 13.38B | 7.57B |
| EBITDA | 6.05B | 9.42B | 11.61B | 22.37B | 14.17B | 7.15B |
| Net Income | -3.17B | 727.00M | -11.31B | -3.13B | -7.37B | 1.01B |
Balance Sheet | ||||||
| Total Assets | 97.25B | 100.08B | 104.56B | 122.76B | 134.00B | 34.43B |
| Cash, Cash Equivalents and Short-Term Investments | 3.37B | 4.57B | 5.31B | 3.78B | 3.73B | 3.90B |
| Total Debt | 32.02B | 32.57B | 39.51B | 43.67B | 49.00B | 14.76B |
| Total Liabilities | 63.25B | 62.92B | 69.62B | 76.28B | 85.33B | 21.03B |
| Stockholders Equity | 32.84B | 35.92B | 34.04B | 45.23B | 47.09B | 11.60B |
Cash Flow | ||||||
| Free Cash Flow | 2.18B | 3.09B | 4.43B | 6.16B | 3.32B | 2.42B |
| Operating Cash Flow | 3.42B | 4.32B | 5.38B | 7.48B | 4.30B | 2.80B |
| Investing Cash Flow | -1.25B | -546.00M | -349.00M | -1.26B | 3.52B | -56.00M |
| Financing Cash Flow | -3.63B | -4.87B | -3.75B | -5.84B | -7.74B | -853.00M |
Warner Bros Technical Analysis
Positive
25.28
Price Trends
26.51
Positive
26.86
Positive
26.73
Positive
Market Momentum
0.03
Negative
59.94
Neutral
90.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WBD, the sentiment is Positive. The current price of 25.28 is below the 20-day moving average (MA) of 26.20, below the 50-day MA of 26.51, and below the 200-day MA of 26.73, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 90.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WBD.
Warner Bros Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $317.67B | 23.15 | 47.96% | ― | 17.62% | 34.80% | |
72 Outperform | $16.14B | 31.72 | 6.62% | 0.73% | 1.06% | 26.22% | |
72 Outperform | $25.05B | 14.23 | 14.74% | 0.99% | 5.07% | -20.95% | |
71 Outperform | $178.16B | 21.30 | 10.29% | 1.58% | 5.31% | -23.96% | |
70 Outperform | $25.05B | 14.23 | 14.74% | 1.13% | 5.07% | -20.95% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $67.46B | -21.31 | -9.22% | ― | -5.87% | -512.89% |
* Communication Services Sector Average
WBD
Warner Bros
27.07
15.85
141.27%
NWSA
News Corp
28.63
0.03
0.10%
DIS
Walt Disney
103.53
-8.57
-7.64%
NFLX
Netflix
74.79
-47.74
-38.96%
FOXA
Fox
62.14
6.54
11.76%
FOX
Fox
55.34
4.72
9.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.